Japanese Yen Exchange Guide: 4 Major Methods Cost Comparison, Learn How to Save Money Smartly

Why Has the Japanese Yen Become Taiwan’s “Second Foreign Currency”?

When it comes to currency exchange, most Taiwanese investors think of the Japanese Yen. But this is not simply because of a love for traveling to Japan. From daily consumption to financial allocation, the Yen has long permeated Taiwanese asset portfolios.

Lifestyle Aspects: The Continued Need for Travel Remains Main

In Tokyo, Kyoto, Hokkaido⋯⋯ stores in major Japanese cities generally prefer cash transactions (credit card penetration is only about 60%). Whether it’s purchasing cosmetics, anime merchandise, clothing, or ordering through purchasing agent websites, settlement is done in Yen. Plus, students studying abroad or working holidaymakers often prepare Yen in advance to lock in exchange rates.

Investment Aspects: One of the World’s Top Three Safe-Haven Currencies

The Yen, along with the US dollar and Swiss franc, ranks among the top global safe-haven currencies, primarily due to Japan’s economic resilience and low debt structure. During the Russia-Ukraine conflict in 2022, the Yen appreciated by 8% in a single week, while global stock markets fell by 10%—a real-world demonstration of its safe-haven function. For Taiwanese investors, holding Yen positions is equivalent to insuring against Taiwan stock market volatility. Additionally, Japan’s long-term ultra-low interest rate policy (currently only 0.5%) makes Yen a “carry trade currency”: investors borrow low-interest Yen, switch to higher-yield USD (USD-JPY spread about 4.0%), and when risks rise, close the position by buying back Yen, forming a complete trading ecosystem.

The 4 Most Common Yen Exchange Channels Used by Taiwanese

There is a common saying that “to exchange Yen, just go to the bank,” but in reality, the spread alone can eat up several cups of bubble tea. We have collected the latest rates and analyze the true costs of each method.

Method 1: Bank Counter Cash Exchange — The Most Traditional but Costliest

Carrying NT$ cash directly to a bank branch or airport counter to exchange for Yen is straightforward but costly. Since it uses the cash selling rate (usually 1-2% worse than the spot rate), plus possible handling fees, the overall cost is significantly higher.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT$/Yen (roughly 1 NT$ = 4.85 Yen). Some banks also charge fixed handling fees, ranging from free to NT$200.

Advantages: Safe and reliable, multiple denominations (1,000/5,000/10,000 Yen), immediate cash on hand, staff guidance available.

Disadvantages: Large spread, limited business hours (9:00-15:30 on weekdays), handling fees increase costs.

Suitable for: Travelers unfamiliar with online operations, urgent cash needs at the airport.

Major banks’ fee table (as of 2025/12/10):

Method 2: Online Currency Exchange + ATM Withdrawal — Convenience and Cost Balance

Use bank app or online banking to convert NT$ to Yen, depositing into a foreign currency account, enjoying the spot selling rate (about 1% better than cash selling). If cash is needed, you can withdraw at counters or foreign currency ATMs, but handling fees apply (starting around NT$100).

This method is especially suitable for observing exchange rate trends, buying in batches at low points (e.g., when NT$ to Yen is below 4.80), and lowering average costs. After currency exchange via E.SUN app, withdrawing Yen cash incurs handling fees plus the spot rate difference, starting from NT$100.

Advantages: 24/7 self-service, ability to buy in installments to average costs, relatively favorable rates.

Disadvantages: Need to open a foreign currency account in advance, withdrawal fees (NT$5-100 cross-bank).

Suitable for: Investors with forex trading experience, holding foreign currency accounts, possibly combined with Yen fixed deposits (annual interest rate about 1.5-1.8%) to earn interest.

Method 3: Online Currency Purchase Reservation — Best Pre-Travel Plan

No need for a foreign currency account, just fill in the amount, branch, and date on the bank’s website, then pick up in person with ID and transaction notification. Taiwan Bank and Mega Bank offer this service, with options to reserve at airport branches, saving queuing time.

Taiwan Bank’s “Easy Purchase” online currency purchase usually waives handling fees (pay NT$10 via Taiwan Pay), with about 0.5% rate advantage. Ideal for pre-trip planning, with 14 Taiwan Bank outlets at Taoyuan Airport, including 2 open 24 hours, offering flexible pickup.

Advantages: Favorable rates, often fee-free, airport pickup options, no queues.

Disadvantages: Must plan 1-3 days in advance, pickup times limited by bank hours, branches cannot modify reservations.

Suitable for: Well-planned trips, travelers wanting to withdraw directly at the airport.

Method 4: Foreign Currency ATM 24/7 Self-Service Withdrawal — Most Flexible but Limited Locations

Use chip-enabled debit/credit cards at foreign currency ATMs to withdraw Yen cash, available 24/7, supporting cross-bank withdrawals, with a NT$5 cross-bank fee per transaction. Supports major currencies (Yen, USD, etc.), but fewer than 200 ATMs nationwide.

SinoPac Bank’s foreign currency ATMs allow NT$150,000 per day withdrawal from NT$ accounts, no exchange fee. Note that Japan ATM withdrawal services will be adjusted by end of 2025, requiring international cards (Mastercard/Cirrus).

Advantages: Instant funds, no banking hours restrictions, low cross-bank fees, from NT$ accounts.

Disadvantages: Limited locations (especially outside urban areas), fixed denominations (1,000/5,000/10,000 Yen), cash may run out during peak times.

Suitable for: Urgent needs, last-minute cash, avoiding queues.

Cost Comparison of the 4 Methods: Actual Test with NT$50,000

Based on the latest data as of December 2025, calculating the actual expenditure for NT$50,000:

Conclusion: For a budget of NT$50,000-200,000, a hybrid approach of “online currency purchase + ATM withdrawal” can minimize costs.

Is It a Good Time to Exchange Yen Now? Market Timing Analysis

As of December 10, 2025, the NT$ to Yen rate is 4.85 (1 NT$ = 4.85 Yen), up 8.7% from the beginning of the year at 4.46. Amid ongoing NT$ depreciation pressure, this exchange gain is significant. Data shows Taiwan’s forex demand increased by 25% in the second half of the year, driven by travel recovery and safe-haven needs.

Bank of Japan Policy Boosts Yen Appeal

BOJ Governor Ueda Kazuo recently signaled a hawkish stance, with market expectations of an 80% chance of rate hikes. The December 19 meeting is expected to raise rates by 0.25 bps to 0.75% (a 30-year high), with Japanese bond yields reaching 17-year highs of 1.93%. USD/JPY has fallen from the year’s high of 160 to 154.58; short-term fluctuations may see it around 155, but long-term forecasts suggest further decline below 150.

Risks and Opportunities

For investors, phased currency exchange is key to risk reduction. Carry trade unwinding could cause 2-5% volatility. It is recommended not to exchange all at once but to enter gradually, possibly combining HKD to USD and other multi-currency strategies to diversify risk.

What to Do After Exchanging Yen? Maximize Your Funds

Yen should not just sit idle in an account earning no interest but be converted into steady income or growth investments.

Option 1: Yen Fixed Deposit — Stable Cash Flow Open foreign currency accounts at E.SUN or Taiwan Bank, transfer Yen online. Minimum NT$10,000 deposit, annual interest 1.5-1.8%, suitable for conservative investors.

Option 2: Yen Savings Insurance — Medium-term Locked Income Cathay or Fubon Life offer Yen-denominated savings insurance, with guaranteed interest rates of 2-3%, suitable for 3-5 year funds deployment.

Option 3: Yen ETFs — Participate in Market Gains Yuanta 00675U or other Yen index funds track Yen movements, can be bought as fractional shares via broker apps, with annual management fee of 0.4%.

Option 4: Forex Swing Trading — Capture Short-term Opportunities Trade USD/JPY, EUR/JPY on platforms like Mitrade, with long/short options, 24-hour trading, low capital requirements, suitable for experienced traders. Platforms offer zero commission, low spreads, stop-loss/take-profit tools.

Quick FAQs

Q: What’s the difference between cash rate and spot rate?

Cash rate is used for physical cash transactions, usually worse (higher risk for banks); spot rate is for electronic transfers (interbank settlement, import/export), closer to international market levels, but settled T+2.

Q: How many Yen for NT$10,000?

Using Taiwan Bank’s spot rate of 4.87, NT$10,000 ≈ 48,700 Yen. Using cash rate of 4.85, about 48,500 Yen, a difference of 200 Yen (~NT$40).

Q: What to bring for counter exchange?

ID + passport (foreigners bring passport + residence permit). For online reservations, also bring transaction notification. Under 20 years old need parent accompaniment; large amounts (>NT$100,000) may require source of funds declaration.

Q: Is there a withdrawal limit at ATMs?

After October 2025, many banks adjusted limits. CTBC: NT$120,000 per transaction/day; Taishin: NT$150,000; E.SUN: NT$50,000 per withdrawal (50 banknotes), NT$150,000/day. It’s recommended to split withdrawals or use your own bank card to save cross-bank fees.

Conclusion

The Yen has evolved from a purely travel currency to a safe-haven and investment asset. Whether for next year’s trip to Japan or long-term asset protection, mastering “phased exchange + active utilization” can maximize every exchange. Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then incorporate fixed deposits, ETFs, or swing trading based on needs. This not only makes travel more cost-effective but also adds a layer of asset protection amid global market turbulence.