Is the Japanese Yen still rising after breaking 4.85? Learn the exchange tricks to save 2000 yuan

In December 2025, the NT dollar against the Japanese Yen surged to 4.85, hitting a new high for the year. Many people ask: Is it cost-effective to exchange for Yen now? The key is not just the exchange rate level, but choosing the right exchange channel. The same amount of 50,000 NT dollars transferred via different methods can have cost differences exceeding 2,000 NT dollars.

Why should you pay attention to the Yen now?

The Yen is not just a travel currency. As one of the world’s three major safe-haven currencies (USD, Swiss Franc, Yen), it often rises counter to market turbulence. During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in one week, effectively hedging against global stock market declines. For Taiwanese investors, holding Yen is like insuring against fluctuations in the Taiwan stock market.

More importantly, the Bank of Japan is about to raise interest rates to 0.75% (a 30-year high), and Japanese government bond yields have hit a 17-year high of 1.93%. The USD/JPY has fallen from 160 at the start of the year to around 154, with short-term fluctuations still possible. Long-term, it is favorable below 150, providing many opportunities for phased entry for investors.

Four exchange methods for Yen, with significant cost differences

Method 1: Bank counter exchange — the most traditional but most expensive

Bring cash NT dollars to a bank or airport counter to exchange for Yen banknotes. Simple to operate, but using the “cash selling rate” (1-2% worse than the spot rate), it is the most costly among the four options.

For example, Taiwan Bank as of December 10, 2025, the cash selling rate is about 0.2060 (1 NT dollar = 4.85 Yen). 50,000 NT dollars can only buy about 242,500 Yen. Plus some banks charge handling fees of 100-200 NT dollars, resulting in a loss of about 1,500-2,000 NT dollars.

Suitable for: Urgent cash needs at the airport, small cash withdrawals

Method 2: Online currency exchange transfer — requires a foreign currency account

Use bank app or online banking to convert NT dollars into Yen and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling rate). If you need to withdraw cash, go to an ATM or counter, but additional withdrawal fees apply.

The advantage is 24-hour operation, suitable for observing exchange rate trends and entering gradually. However, you need to open a foreign currency account first, and withdrawal incurs a fee of over 100 NT dollars. Overall cost is about 500-1,000 NT dollars.

Suitable for: Experienced forex users, planning long-term holdings or transfers

Method 3: Online currency settlement with direct withdrawal — best for pre-trip needs

Fill in currency, amount, withdrawal branch, and date on the bank’s website. After remittance, bring ID and transaction notification to the branch for pickup. Taiwan Bank’s “Easy Purchase” online settlement has no handling fee (pay with Taiwan Pay for only 10 NT dollars), with about 0.5% better exchange rate.

The key advantage is the ability to reserve airport branch pickup. Taoyuan Airport has 14 locations (2 open 24 hours), ideal for morning pickup before departure. The cost is the lowest, about 300-800 NT dollars.

Suitable for: Planned travelers who want to pick up cash directly at the airport

Method 4: Foreign currency ATM — most flexible 24/7

Use a chip-enabled financial card at foreign currency ATMs to withdraw Yen cash, operating 24 hours. Deducts directly from NT account, with only 5 NT dollars cross-bank fee, no extra currency exchange fee. Fubon Bank’s foreign currency ATM has a daily limit of 150,000 NT dollars, offering flexible withdrawals.

Disadvantages include limited locations (about 200 nationwide), fixed denominations (1000/5000/10000 Yen), and cash shortages during peak times (e.g., airports). Cost is about 800-1,200 NT dollars.

Suitable for: Busy professionals who lack time to visit banks and need quick cash

Cost comparison: exchanging 50,000 NT dollars

Is it cost-effective to exchange Yen now? A phased approach is smartest

1 NT dollar = 4.85 Yen, up 8.7% from 4.46 at the start of the year. But Yen exchange rates are volatile, likely fluctuating between 154-156 in the short term. It’s recommended to enter in three phases to avoid exchanging all at once.

• First batch (30%): Enter now to lock in hedging
• Second batch (40%): Wait for Yen to fall below 4.80 before entering
• Third batch (30%): Keep flexibility and adjust based on market conditions

This approach disperses risk and balances costs amid volatility.

What to bring for counter transfer?

Taiwanese: ID card + passport
Foreigners: Passport + residence permit
Corporate entities: Business registration documents
Online reservation for pickup: Transaction notification

Note: Under 20 requires parental accompaniment; large transfers (over 100,000 NT dollars) require source of funds declaration.

After exchanging Yen, make your money work for you

Don’t let Yen sit idle without interest. Four common options:

1. Yen fixed deposit: Annual interest 1.5-1.8%, minimum 10,000 Yen
2. Yen ETFs (00675U, 00703): Track Yen index, suitable for regular investment
3. Yen forex trading: Trade USD/JPY or EUR/JPY to catch short-term fluctuations
4. Yen insurance policies: Savings insurance with guaranteed 2-3% interest

Quick summary

The Yen is now an investment-grade asset, not just for travel. Follow the two main principles: phased exchange + lowest-cost channels. Beginners should start with Taiwan Bank online settlement + airport pickup for the best value. After exchange, move funds into fixed deposits or ETFs to enjoy interest and add a layer of hedging during global market turbulence.