How to get the best exchange rate for Japanese Yen? Using the right method can save you thousands in difference.

By 2025, the NT dollar to Japanese Yen has risen to 4.85, and many are preparing to travel to Japan or allocate hedging assets. But do you know? Using the same 50,000 NT dollars, choosing the wrong channel could cost you an extra 1,500 yuan. We will break down the actual costs of the four major currency exchange methods and include a comparison of the currency pairs between Malaysian Ringgit and Japanese Yen, so you can instantly understand how to exchange most advantageously.

Why is it worth exchanging for Yen? Not just for travel

When it comes to foreign currencies, Taiwanese people’s first reaction is the Yen. There are two solid reasons behind this:

Travel and daily needs
Tokyo, Osaka, Hokkaido—Japan remains a cash-based society, with most merchants only accepting cash (credit card penetration is only 60%). Plus, for purchasing via agents, Japanese online shopping, or studying and working abroad, the use of Yen cash is far higher than other currencies.

Hedging in financial markets
The Yen, along with USD and Swiss Franc, is one of the world’s three major safe-haven currencies. During the Russia-Ukraine conflict in 2022, the Yen appreciated by 8% in one week, while the stock market fell 10%—this demonstrates the power of hedging. For Taiwanese investors, allocating Yen under the pressure of NT dollar depreciation can effectively hedge Taiwan stock risks. Additionally, the Bank of Japan is expected to raise interest rates to 0.75% in December (a 30-year high), further boosting Yen’s attractiveness.

Practical comparison of 4 major currency exchange methods

Many think bank currency exchange is all the same, but differences in exchange rates and fees can eat up several cups of bubble tea. Here’s a calculation based on exchanging 50,000 NT dollars to show you clearly:

Method 1: Counter exchange—most secure but most expensive

Bring NT dollars directly to a bank or airport counter to buy cash. It sounds safest, but banks use the “counter selling rate,” usually 1-2% worse than the market rate.

For example, Taiwan Bank’s cash counter rate on December 10, 2025, was about 0.2060 NT$/Yen (equivalent to 1 NT$ = 4.85 Yen). Some banks also charge an additional 100-200 NT$ fee. Calculations show that exchanging 50,000 NT$ results in a loss of about 1,500-2,000 NT$.

Suitable for: Those unfamiliar with online banking, urgent airport needs, small amounts.

Method 2: Online exchange + withdrawal—investment-grade operation

Use bank app or online banking to convert NT$ into Yen in a foreign currency account, using the “spot rate” (better by 1% than counter rate), then withdraw cash as needed. Exchanging 50,000 NT$ costs only about 500-1,000 NT$, making it the first choice for those with forex experience.

Key advantages: 24-hour operation, ability to split into batches for average cost, better exchange rates. Disadvantages: need to open a foreign currency account first, extra fees upon withdrawal.

Suitable for: Frequent foreign currency users, those wanting to invest in Yen deposits (annual interest 1.5-1.8%).

Method 3: Online currency conversion + airport pickup—best before travel

Taiwan Bank’s “Easy Purchase” allows online form filling, free reservation, and airport pickup. Exchange rate advantage of about 0.5%, most fees are waived, costing only 300-800 NT$. Taoyuan Airport has 14 Taiwan Bank counters, 2 of which operate 24 hours.

Disadvantages: need to book 1-3 days in advance, pickup during bank hours only.

Suitable for: Well-planned travelers who don’t want last-minute chaos.

Method 4: Foreign currency ATM—most flexible

Use a chip-enabled bank card at foreign currency ATMs to withdraw Yen directly, operating 24/7, with only 5 NT$ fee for interbank transactions. E.SUN Bank’s daily limit is 150,000 NT$, costing about 800-1,200 NT$.

Disadvantages: Only about 200 ATMs nationwide, fixed denominations (1,000/5,000/10,000 Yen), cash may run out during peak times.

Suitable for: Urgent needs, no time to queue.

Cost quick reference table for 4 methods

Is it worthwhile to exchange Yen now? Timing analysis

This year, NT$ to Yen has risen from 4.46 at the start of the year to 4.85, an appreciation of 8.7%. The forex gains from exchanging Yen are quite significant. Global arbitrage unwinding, geopolitical conflicts, or US-Japan interest rate spreads can cause short-term fluctuations. It’s recommended to split the exchange rather than do it all at once.

Short-term fluctuations are expected between 150-155, with Yen supported in the medium to long term. Compared to other currencies like MYR/JPY, Yen’s hedging features and liquidity remain top.

What to do after exchanging Yen? Don’t let your money sit idle

If you just exchange and hold, a 0% annual interest rate is a waste. Here are four small investment options:

1. Yen fixed deposit (conservative)
E.SUN, Taiwan Bank foreign currency accounts, starting from 10,000 Yen, with annual interest of 1.5-1.8%.

2. Yen insurance policies (medium-term holding)
Cathay, Fubon life savings insurance, with guaranteed interest rates of 2-3%.

3. Yen ETFs (growth-oriented)
Yuan Da 00675U tracking Yen index, available for fractional shares or regular investment, annual management fee 0.4%.

4. Forex swing trading
Trade USD/JPY or EUR/JPY on forex platforms, with long and short positions, 24-hour operation, using small capital.

Key details to know about exchanging Yen

Cash rate vs. spot rate—what’s the difference?
Cash rate is the price banks offer for physical cash, usually 1-2% worse than market price. Spot rate is the T+2 settlement price used for electronic transfers and corporate settlements, more favorable.

How much Yen for 10,000 NT$?
Using the formula: Yen amount = NT$ amount × current rate. At 4.85, 10,000 NT$ ≈ 48,500 Yen.

What to bring for counter exchange?
ID + passport (foreigners bring passport + residence permit). For online booking, also bring transaction notification. Large amounts (over 100,000 NT$) may require declaration of source of funds.

Daily withdrawal limit at foreign currency ATMs?
Varies by bank. CTBC: equivalent to 120,000 NT$/day, E.SUN: 150,000 NT$, Taishin: 150,000 NT$. It’s recommended to use your own bank card to avoid cross-bank fees.

Core recommendations

Yen is no longer just “pocket money” for travel; it’s also an asset allocation tool with hedging and income potential. Whether for travel or investment, mastering “split exchange + post-exchange investment” can minimize costs and maximize returns. Beginners are advised to start with Taiwan Bank’s online currency exchange or foreign currency ATMs, then progress to Yen deposits and ETFs. This way, you can enjoy cost-effective travel and add a layer of protection during global market fluctuations.