Is exchanging Japanese Yen worthwhile? A practical guide for NT$ to JPY at 4.85

By the end of 2025, the Taiwanese dollar has risen above the 4.85 level against the Japanese yen, appreciating over 8% since the beginning of the year. As Japan’s tourism heat rebounds and risk aversion demands increase, more and more people are seriously considering the timing of exchanging for yen. But the key question is: Is it worth exchanging now? What is the most cost-effective way to do so?

We have compiled the most practical currency exchange channels and the latest exchange rate data in the market to help you quickly find the best solution for yourself.

Why has exchanging for yen become a hot topic now?

The Japanese yen is not just a travel currency; there are three layers of logic behind it worth paying attention to.

Travel and consumption aspect: Cash remains the mainstream payment method in Japan (credit card penetration is only 60%), and the demand for yen among travelers to Japan is increasing year by year. Shopping agents, online shopping, studying abroad, and other daily cross-border consumption scenarios also require yen.

Hedging asset property: The yen is one of the world’s three major safe-haven currencies alongside the US dollar and Swiss franc. Over the past year, global geopolitical risks have increased, making the yen an effective tool to hedge against Taiwan stock market volatility—during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, while the stock market fell by 10% in the same period. For Taiwanese investors, holding yen is like an additional layer of protection.

Arbitrage trading space: The Bank of Japan has maintained a low-interest-rate policy for a long time (currently only 0.5%), creating arbitrage opportunities with the 4% interest rate differential with the US dollar. Many institutions borrow low-interest yen to convert into high-interest USD investments. When risks rise, they close positions and rebalance, causing exchange rate fluctuations.

Three main channels for foreign currency ATM, online exchange, and counter exchange

The cost difference in exchanging yen is larger than you might think. Exchanging NT$50,000 through different methods can vary by NT$1,000–2,000, equivalent to several cups of bubble tea. The following are the three most mainstream channels in the market:

Method 1: Foreign currency ATM — Most flexible but limited locations

Use a chip-enabled financial card to withdraw yen cash from a foreign currency ATM at a bank. The biggest advantage is 24/7 operation year-round, with a cross-bank fee of only NT$5. The Taiwan Shin Kong Bank foreign currency ATM has a daily limit of NT$150,000 equivalent, offering the lowest withdrawal cost.

However, there are only about 200 foreign currency ATM locations nationwide, and cash may run out during peak hours (especially at airports). It is recommended not to wait until the night before departure to withdraw, to avoid missing out.

Estimated cost: Exchanging NT$50,000 may incur a loss of NT$800–1,200
Suitable for: Emergency needs, tight schedules, readers unable to coordinate bank hours

Method 2: Online exchange — Cheapest and available at airports

No need to open a foreign currency account first. Simply fill in the currency, amount, branch, and date on the bank’s official website or app. After completing the transfer, bring your ID and transaction notification to the counter for pickup. Taiwan Bank’s “Easy Purchase” online exchange is fee-free (pay NT$10 via Taiwan Pay), with an exchange rate advantage of about 0.5%.

The biggest advantage is reservation for airport branch pickup—Taoyuan Airport has 14 Taiwan Bank locations, including 2 open 24 hours, making it very convenient to withdraw before departure.

Estimated cost: Exchanging NT$50,000 may incur a loss of NT$300–800
Suitable for: Planned travelers, office workers wanting to pick up cash at the airport

Method 3: Counter cash exchange — Most traditional but highest cost

Carry NT$ into a bank or airport counter to exchange for yen cash directly. Although the operation is simple, it uses the “cash selling rate” (about 1-2% worse than the spot rate), plus some bank handling fees, making it relatively expensive.

For example, based on Taiwan Bank’s quote on December 10, the cash selling rate is about NT$0.2060 per yen (about 4.85 yen per NT$). Compared with the spot selling rate of 4.87, exchanging NT$100,000 results in a difference of over NT$400.

Estimated cost: Exchanging NT$50,000 may incur a loss of NT$1,500–2,000
Suitable for: Readers unfamiliar with online operations or needing small emergency cash

Quick reference table of bank exchange rates and fees

Data source: Official websites of banks, updated December 10, 2025

Yen allocation after exchange: don’t just leave it idle

After exchanging for yen, instead of letting the money sit idle without interest, consider moving into stable income or growth assets.

Yen fixed deposit: E.SUN, Taiwan Bank, and others offer annual interest rates of about 1.5–1.8%, with a minimum deposit of 10,000 yen, suitable for conservative investors seeking stable returns.

Yen ETFs: For example, Yuanta 00675U tracks the yen index, with an annual management fee of 0.4%. You can buy fractional shares or set up regular investments via brokerage apps, suitable for those optimistic about the yen’s medium- to long-term appreciation.

Forex swing trading: Trade USD/JPY or EUR/JPY directly on forex platforms, with two-way trading and 24-hour operation, suitable for short-term traders.

The Bank of Japan is on the verge of raising interest rates—recent hawkish comments from Governor Ueda have pushed market expectations of a rate hike to 80%, with a projected increase of 0.25 basis points to 0.75% at the December 19 meeting (a 30-year high). This is positive for the yen’s long-term trend, but short-term arbitrage closing risks remain. It is recommended to allocate gradually rather than all at once.

Frequently Asked Questions

Q: What is the difference between cash rate and spot rate?

Cash rate (Cash Rate) is the rate banks use for physical cash buying and selling, settled immediately and easy to carry, but usually 1-2% worse than the international market. Spot rate (Spot Rate) is the foreign exchange market’s T+2 settlement rate, closer to international prices, suitable for electronic transfers without physical cash.

Q: How much yen can I get with NT$10,000?

Using Taiwan Bank’s cash selling rate of 4.85, NT$10,000 can buy about 48,500 yen. Using the spot selling rate of 4.87, it can buy about 48,700 yen, a difference of about 200 yen (roughly NT$40).

Q: What do I need to bring for counter exchange?

Taiwanese citizens need to bring ID card + passport; foreigners need passport + residence permit. If pre-booked online, also bring transaction notification. Minors under 20 require a parent’s accompaniment. Large exchanges (over NT$100,000) may require source of funds declaration.

Q: What is the ATM withdrawal limit for foreign currency at Taiwanese banks?

Different banks have different limits. CTBC Bank’s card limit is NT$120,000 per transaction and NT$120,000 per day; Taishin Bank is NT$150,000; E.SUN Bank is NT$50,000 per transaction and NT$150,000 per day (including credit card). After the 2025 new regulations, many banks have lowered digital account limits to NT$100,000/day to prevent fraud. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Summary: Exchanging yen now is worthwhile, but methods matter

The NT$4.85 against the yen is a good entry point, with an appreciation of 8.7% this year already showing investment value. The core strategy is “gradual exchange + full deployment after exchange”:

1. For short-term travel: Use online exchange + airport pickup for the lowest cost and convenience
2. For small emergencies: Foreign currency ATM is the only 24-hour option
3. For long-term hedging: Gradually enter with average cost, then transfer into fixed deposits or ETFs
4. For swing trading: Observe US-Japan interest differentials and central bank policies, and operate on forex platforms when timing is right

Whether for travel or asset allocation, mastering this logic allows you to minimize exchange costs and maximize returns.