NTD to JPY Exchange Rate Guide: A Complete Analysis of 4 Major Methods and Costs

Japan travel popularity continues to rise, and with the yen being one of the world’s three major safe-haven currencies, more and more Taiwanese investors are paying attention to the timing and methods of exchanging TWD to JPY. As of December 10, 2025, the TWD/JPY exchange rate has reached 4.85, an appreciation of 8.7% compared to 4.46 at the beginning of the year, making the currency exchange gains quite substantial. However, faced with a variety of currency exchange channels, many people do not realize that choosing the wrong method could cost them several thousand dollars more. This article summarizes the four most common methods of exchanging currency in Taiwan to help you find the most suitable solution.

Why is holding JPY worthwhile?

Daily applications: travel, purchasing, studying abroad essentials

Whether shopping in Tokyo or skiing in Hokkaido, Japan’s cash culture is deeply rooted, with credit card penetration at only about 60%. Travelers often need to carry cash in yen. Purchasing groups and Japanese online shopping enthusiasts also frequently need to pay directly in yen, while students or working holidaymakers planning long-term stays in Japan will prepare yen in advance to avoid the extra costs caused by sudden exchange rate fluctuations.

Financial attributes: dual value of hedging and arbitrage

The yen, along with the US dollar and Swiss franc, is one of the world’s three major safe-haven currencies, due to Japan’s stable economic fundamentals and manageable government debt burden. During market turbulence, funds often flow into yen for safety—during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a single week, effectively buffering a 10% decline in the stock market. For Taiwanese investors, appropriately allocating yen assets can diversify risk and hedge against Taiwan stock market volatility.

Additionally, Japan’s long-term ultra-low interest rate environment (currently 0.5%) makes the yen a “funding currency.” Many investment institutions borrow low-interest yen and convert it into higher-yield USD investments (the USD/JPY interest rate differential reaches 4.0%), creating attractive arbitrage opportunities. When global risk increases, closing arbitrage trades can boost demand for yen, further supporting its value.

Comparison of four main channels for exchanging TWD to JPY

The choice of currency exchange method significantly affects costs. The following four methods each have their advantages, and the key is to combine them flexibly based on purpose, timing, and amount.

Method 1: Bank counter cash exchange — the most traditional but most costly

Carrying TWD cash directly to a bank branch or airport counter to receive yen cash on the spot. This method uses the “cash selling rate,” which is about 1-2% worse than the international spot rate, plus some banks’ counter service fees, making the overall cost relatively high.

For example, using Taiwan Bank’s rate on December 10, 2025, the cash selling rate is about 0.2060 TWD/JPY (exchanging 50,000 TWD yields about 242,500 JPY). If processed at Cathay United Bank or other banks, an additional fee of NT$200 applies. Compared to this, exchanging NT$50,000 via this method incurs a loss of NT$1,500-2,000.

Suitable for: Travelers unfamiliar with online operations, emergency cash needs, or small amounts. Advantages are safety, full denominations, and on-site assistance; disadvantages include poor exchange rates and limited operating hours.

Method 2: Online currency exchange transfer — requires withdrawal of cash later

Many banks offer app or online banking foreign currency exchange functions, using the “spot sell rate” (about 1% better than cash rate) to transfer TWD into foreign currency accounts. To withdraw cash, you need to go to a bank or foreign currency ATM, incurring additional exchange fee (from NT$100).

This method suits those with forex experience who want to observe exchange rate trends and buy in batches. For example, if TWD/JPY drops to 4.80, buying in stages can effectively average the cost. Exchanging NT$50,000 may result in a loss of NT$500-1,000.

Suitable for: Forex investors, yen deposit investors. Advantages include 24-hour operation, flexible batching, and relatively favorable rates; disadvantages are the need to open accounts in advance and additional withdrawal fees.

Method 3: Online pre-order currency exchange, airport pickup — the first choice for travelers

No need to open a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After completing online exchange, bring ID and transaction notification to the counter for pickup. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay NT$10 via TaiwanPay), with about 0.5% exchange rate advantage.

The biggest advantage is the ability to reserve pickup at one of 14 Taiwan Bank counters at Taoyuan Airport (including 2 24-hour branches), avoiding waiting; compared to cash exchange at counters, the cost is only NT$300-800.

Suitable for: Well-planned travelers. Advantages are favorable rates, often no handling fee, and designated airport pickup; disadvantages include needing to book 1-3 days in advance and time restrictions based on operating hours.

Method 4: Foreign currency ATM cash withdrawal — an emergency option without time for counter visit

Use a chip-enabled financial card at bank foreign currency ATMs to withdraw yen cash, operable 24/7. Deduct NT$5 cross-bank fee from TWD account, making it cost-effective. Some banks like Sinopac limit daily withdrawal to NT$150,000 equivalent, with no exchange fee.

However, foreign currency ATM locations are limited (about 200 nationwide), and denominations are fixed (1,000, 5,000, 10,000 yen). During peak times, cash may run out. Cost for exchanging NT$50,000 is about NT$800-1,200.

Suitable for: Urgent needs, no time for counter visit. Advantages are 24/7 access, instant withdrawal, low cross-bank fees; disadvantages are limited locations and fixed denominations.

Cost comparison and decision guide

For a currency exchange need of NT$50,000 to NT$200,000, a mixed approach of “online pre-order + airport pickup” or “online transfer + ATM” is recommended, reducing costs while maintaining flexibility.

Is now a good time to exchange for JPY?

The TWD/JPY exchange rate is currently at a relatively high level. Since 2025, it has appreciated by 8.7%, and the investment gains are quite significant, especially given the pressure of TWD depreciation. In the second half of the year, Taiwan’s currency exchange demand increased by 25%, mainly driven by travel recovery and asset hedging.

From the central bank’s policy perspective, the Bank of Japan Governor Ueda Kazuo recently made hawkish comments, pushing up rate hike expectations to 80%. The December 19 meeting is expected to raise rates by 0.25 basis points to 0.75% (a 30-year high). Japan’s bond yields have hit a 17-year high of 1.93%. USD/JPY has fallen from the high of 160 at the start of the year to 154.58, with short-term fluctuations around 155, but the medium- to long-term trend points below 150.

Investment advice: Gradual entry is best. A one-time full exchange carries higher risk, as arbitrage trades closing or geopolitical conflicts could cause 2-5% volatility. It is recommended to buy in stages within the 4.80-4.90 range to lower the cost basis.

Value-added options after receiving JPY

After exchanging for yen, you don’t need to let the funds idle. You can choose the following allocations based on your risk preference:

1. Yen fixed deposit (conservative) E.SUN Bank, Taiwan Bank foreign currency accounts start from NT$10,000, with annual interest rates of 1.5-1.8%, suitable for steady investors.

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

3. Yen ETFs (growth-oriented) Yuanta 00675U, 00703 tracking yen index, can be bought in fractional shares via broker apps, suitable for periodic investment.

4. Forex trading (swing trading) Trade USD/JPY or EUR/JPY on forex platforms, 24/7 two-way trading, capturing exchange rate movements, requiring some experience.

Common questions and answers

What’s the difference between cash exchange rate and spot rate?

Cash exchange rate applies to physical cash transactions, suitable for travel currency exchange, with the advantage of immediate delivery and portability, but 1-2% worse than the spot rate. Spot rate is used for electronic transfers, settled within two business days, and is closer to the international market price, with lower costs.

( How much JPY can I get with NT$10,000?

Using the December 10, 2025 cash selling rate of 4.85, NT$10,000 can exchange for about 48,500 JPY; using the spot rate of 4.87, it can exchange for about 48,700 JPY, a difference of roughly 200 JPY (about NT$40).

) What documents are needed for counter processing?

Taiwanese need to bring ID card + passport; foreigners need passport + residence permit. For online pre-order, also bring transaction notification. Minors under 20 require parental accompaniment and consent; large exchanges over NT$100,000 may require source of funds declaration.

What is the limit for foreign currency ATM withdrawals?

Banks have different limits. CTBC Bank: NT$120,000 equivalent/day; Taishin Bank: NT$150,000; E.SUN Bank: NT$50,000 per transaction, NT$150,000 per day. From October 2025, many banks have strengthened anti-fraud measures, with digital account limits reduced to NT$100,000/day. It is recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Final reminder

The yen is no longer just “travel pocket money” but a financial tool with asset allocation and hedging functions. By following the dual principles of “batch exchange” and “post-exchange appreciation,” you can lower costs and maximize returns.

For beginners, starting with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM” is recommended. After becoming familiar, gradually expand to fixed deposits, ETFs, or forex swing trading. This way, you not only enjoy cost-effective travel but also add an extra layer of asset protection amid global market fluctuations.