2025 Japanese Yen Exchange Complete Guide | Revealing the Costs of 4 Major Channels

Does the NT$ to JPY exchange rate reaching 4.85 in December mean it’s really the best time to exchange yen?

Many people think the yen is only used for traveling abroad, but that’s outdated. As one of the world’s three major safe-haven currencies (USD, Swiss Franc, JPY), the yen serves both investment and protection functions for Taiwanese investors. From the beginning of the year to now, NT$ to JPY has appreciated by 8.7%, and the demand for currency exchange in the second half has grown by 25%. This reflects a dual momentum of travel recovery and capital hedging.

But here’s a key question: The method you choose to exchange currency might directly determine whether you pay several thousand more or save a few thousand.

Understand the 4 main currency exchange channels｜Cost, timing, suitable scenarios compared

1. Bank counter exchange｜Safest but worst exchange rate

Exchanging cash at bank counters or airports is the most traditional way. The problem is that banks use the “cash selling rate,” which is 1-2% worse than the spot rate, plus possible handling fees. For example, with NT$50,000, the cost could be a loss of NT$1,500-2,000.

Taking Taiwan Bank as an example, on December 10, the cash selling rate was NT$0.2060 per yen (i.e., NT$4.85 per yen). Some banks like E.SUN and Cathay United also charge an additional NT$100-200 handling fee.

When to use this? If you’re unfamiliar with online operations, in a rush (e.g., at the airport), or only need a small amount of yen.

2. Online exchange + in-person withdrawal｜Ideal for investment beginners

Transfer NT$ to JPY via bank app or online banking into a foreign currency account, using the “spot selling rate” (about 1% discount). Then, if you need cash, withdraw in person at the counter or foreign currency ATM, but there will be a withdrawal fee (starting around NT$100). Loss is about NT$500-1,000.

The advantage of this method is 24-hour operation, allowing for phased entry to average costs. If you observe that NT$ to JPY drops below 4.80, you can buy in stages, which is much more cost-effective than exchanging all at once.

After exchanging, many people will also invest in JPY fixed deposits (annual interest rate about 1.5-1.8%) to let the money work for them.

When to use this? If you have time to plan exchange timing, intend to hold JPY long-term, or want to save and invest simultaneously.

3. Online exchange + airport pickup｜Best pre-travel plan

No need to open a foreign currency account in advance. Just fill in the currency, amount, pickup branch, and date on the bank’s official website, then bring ID and transaction notification to pick up in person. Taiwan Bank’s “Easy Purchase” online exchange even waives handling fees (pay NT$10 via Taiwan Pay), with about 0.5% exchange rate advantage, and only NT$300-800 loss.

Key point: Taoyuan Airport has 14 Taiwan Bank outlets, 2 of which operate 24 hours, perfectly fitting the “pre-departure reservation and airport pickup” process.

When to use this? If your trip is well-planned, confirmed, and you want a hassle-free pickup at the airport. This is the lowest-cost option among lazy solutions.

4. Foreign currency ATM｜Emergency solution

Use a chip-enabled financial card to withdraw yen at foreign currency ATMs, available 24/7. Deducts NT$5 cross-bank fee from your NT$ account (free at your bank). Daily limit varies by bank (e.g., E.SUN NT$150,000; E.SUN NT$50,000). However, the number of ATMs is limited (about 200 nationwide), and denominations are fixed (1,000/5,000/10,000 yen).

Loss is about NT$800-1,200, but it’s the fastest option. Be aware that during peak times (holidays or at airports), cash may run out, so avoid last-minute reliance.

When to use this? If you don’t have time to queue at banks, need urgent cash, or already have a foreign currency account.

How to interpret “buy” vs “sell” exchange rates? 2 major traps investors must understand

Many beginners confuse these two concepts, often paying more than necessary.

Sell rate (Selling Rate) is the rate banks sell foreign currency to you, used when exchanging NT$ for yen. It comes in two types:

• Spot sell rate: settled within 2 working days, most favorable (closest to market rate)
• Cash sell rate: immediate cash delivery, less favorable (banks need to hold cash)

Buy rate (Buying Rate) is when you sell foreign currency to the bank. If you return from Japan with yen cash and exchange back to NT$, this applies.

Example: Taiwan Bank’s December 10 rate, spot sell about 4.87, cash sell about 4.85. Exchanging NT$10,000 at spot rate yields about 48,700 yen; cash rate yields about 48,500 yen. The difference is 200 yen (NT$40). Small difference, but for NT$50,000 or NT$100,000, it adds up.

Reminder: Banks’ buy rates are always 2-3 bps worse than sell rates, which is how banks profit. Always clarify whether you are “entering” or “exiting” the market.

Is it a good time to exchange yen now? Timing analysis

Short-term fluctuations vs medium-long-term trend

Currently, NT$ to JPY is 4.85, up from 4.46 at the start of the year, appreciating by 8.7%. But don’t rush to buy all at once, as the yen is in a “policy turning point” phase.

Bank of Japan Governor Ueda Kazuo recently made hawkish comments, boosting rate hike expectations to 80%, with a 0.25 bps increase expected at the December 19 meeting (a 30-year high), which benefits the yen. However, the US is entering a rate cut cycle, and as a low-interest funding currency, the yen may face selling pressure once arbitrage trades unwind.

USD/JPY has fallen from a high of 160 at the start of the year to 154.58. Short-term, it may oscillate around 155, but medium to long-term, it’s forecasted to stay below 150. The strategy should be to buy in stages, each time 30,000-50,000, rather than all at once.

Investor insight: While the yen has safe-haven attributes, it also fluctuates bidirectionally. Suitable for hedging Taiwan stock volatility, but short-term risks include arbitrage unwinding, with potential oscillations of 2-5%.

After exchanging yen, don’t just sit back｜4 ways to grow your money

After exchanging yen, the key is to make the money work, not let it gather dust.

Beginner path recommendation: Start with yen fixed deposits to build principal, simultaneously buy yen ETFs (annual fee 0.4%) for growth. For forex swing trading, try small amounts with USD/JPY or EUR/JPY to experience rate fluctuations.

Quick FAQs

Q: How much yen for NT$10,000?
Use formula: Yen amount = NT$ amount × current rate. For December 10 at 4.85, NT$10,000 ≈ 48,500 yen.

Q: Are there withdrawal limits at Taiwanese foreign currency ATMs?
Yes. From 2025, many banks set limits: NT$100,000-150,000 per day at your bank, depending on the card. To avoid cash shortages, consider multiple withdrawals or using your bank’s card.

Q: What documents are needed for in-person exchange?
Taiwanese: ID card + passport; Foreigners: passport + residence permit. Under 20 need parental accompaniment. If booked online, bring transaction notification.

Summary｜Master “phased exchange + active utilization” to win half the battle

Yen has evolved from a simple travel tool to an asset with hedging and investment functions. Instead of worrying “Is now a good time to exchange?”, ask yourself: What type of user am I?

• Travelers: Use online exchange + airport pickup, most cost-effective and worry-free.
• Investors: Phased online exchange + fixed deposits or ETFs, for average costs and rolling gains.
• Urgent users: Foreign currency ATM for emergencies, slightly higher cost but highly convenient.

Remember the core principle: Exchange in stages to avoid chasing highs, and after exchanging, switch to fixed deposits or ETFs. This way, you can enjoy more cost-effective trips and added protection when the NT$ depreciates.