Smart Guide to Converting TWD to JPY: 4 Ways to Clearly See the Costs at a Glance

The NT dollar to Japanese Yen exchange rate has reached 4.85, and the demand for travel and Yen investments in Japan is heating up. If you’re also considering exchanging for Yen, the key isn’t “whether to exchange,” but “how to do it most cost-effectively.” We have compiled the latest four Yen exchange channels, cost comparisons, and selection frameworks to help you get it all done at once.

Why is now a good time to pay attention to Yen exchange?

The Yen is not just pocket money for travel; its role in Taiwanese daily life and investment portfolios is evolving.

Lifestyle consumption: travel, purchasing agents, studying abroad

Most shopping streets in Tokyo and Osaka still primarily use cash (credit card penetration is only 60%). From skiing in Hokkaido, vacations in Okinawa, to purchasing demand for Japanese cosmetics, fashion, and anime merchandise, Taiwanese demand for Yen cash remains strong. Additionally, those planning to study or work in Japan usually exchange Yen in advance to avoid costs from sudden exchange rate fluctuations.

Financial market perspective: Yen as a global safe-haven asset

The Yen has long been one of the three major safe-haven currencies (alongside USD and Swiss Franc). During the Russia-Ukraine conflict in 2022, the Yen appreciated by 8% in a week, while the stock market fell by 10%. For Taiwanese investors, appropriately allocating Yen holdings can hedge against Taiwan stock market volatility.

Meanwhile, the Bank of Japan (BOJ) has recently adopted a hawkish stance—Governor Ueda Kazuo signaled a rate hike, with market expectations of a 0.25 basis point increase to 0.75% at the December 19 meeting (a 30-year high), and Japanese bond yields have hit a 17-year high of 1.93%. This policy shift also supports the Yen’s medium-term appreciation potential.

Currently, USD/JPY is around 154.58, which has adjusted from the high of 160 at the start of the year, but short-term fluctuations may still bring it near 155.

Yen exchange: real cost comparison of 4 channels

Many think exchanging Yen only requires going to a bank, but differences in exchange rates and handling fees can cost you several cups of bubble tea. Below are the latest four Yen exchange methods in Taiwan and their real costs:

Method 1: Bank or airport counter exchange

Carry NT$ cash directly to a bank branch or airport counter, using the “cash selling rate” (about 1-2% worse than the spot rate).

Example from Taiwan Bank on December 10, 2025: Cash selling rate is approximately 0.2060 Yen per NT$ (about 4.85 Yen per NT$).

Bank fees and rate differences:

Suitable for: Small, urgent exchanges (e.g., at the airport), or those unfamiliar with online operations. For NT$50,000, estimated loss is about NT$1,500-2,000.

Method 2: Online currency exchange + counter or ATM withdrawal

Use bank app or online banking to convert NT$ into Yen and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling rate). If cash is needed, withdraw at counters or foreign currency ATMs, but additional handling fees apply (from NT$100).

For example, after completing the exchange via E.SUN Bank app, then withdraw at counter or ATM, paying the difference between spot and cash rates as a fee.

Features: Suitable for monitoring exchange rate trends and gradual entry. Buying in installments when NT$ to Yen is below 4.80 can effectively average costs. For NT$50,000, estimated loss is NT$500-1,000.

Suitable for: Those experienced with foreign exchange accounts, planning to do Yen fixed deposits or small investments.

Method 3: Online currency settlement + airport or designated branch pickup

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. Taiwan Bank’s “Easy Purchase” online settlement is fee-free (pay NT$10 via TaiwanPay), with about 0.5% exchange rate advantage. Mega Bank offers similar service, allowing reservation for airport pickup.

Taoyuan Airport has 14 Taiwan Bank outlets (including 2 open 24 hours), suitable for pre-departure planning.

Features: Favorable exchange rates, usually no or very low handling fees. Requires 1-3 days advance reservation, pickup during bank hours. For NT$50,000, estimated loss NT$300-800.

Suitable for: Planned travelers who want to withdraw directly at the airport.

Method 4: Foreign currency ATM 24-hour withdrawal

Use a chip-enabled debit card at bank foreign currency ATMs to withdraw Yen cash, operational 24/7. Deducts only NT$5 cross-bank fee from NT$ account. With Yongfeng Bank’s foreign currency ATM, withdrawal limit is NT$150,000 per day, with no exchange fee.

Note: About 200 foreign currency ATMs nationwide, with limited denominations (fixed at 1,000/5,000/10,000 Yen). During peak times (like airports), cash may run out; not recommended for last-minute needs.

Features: Instant withdrawal, high flexibility, low cross-bank fee. For NT$50,000, estimated loss NT$800-1,200.

Suitable for: Those with no time to visit banks or needing urgent cash.

Is it worthwhile to exchange Yen now? Entry suggestions

As of December 10, 2025, NT$ to Yen is about 4.85. Compared to the start of the year at 4.46, it has appreciated by approximately 8.7%, making the exchange gains quite significant for Taiwanese investors. In the second half of the year, Taiwan’s forex demand increased by 25%, mainly driven by travel recovery and hedging needs.

The answer: It’s worth considering exchanging Yen now, but do so in installments.

The Yen exchange rate remains volatile. The US entering a rate-cut cycle supports Yen, but global arbitrage unwinding could cause short-term swings of 2-5%. It’s recommended to buy in parts, avoiding a lump sum, to both capture appreciation potential and mitigate single-point risks.

Post-exchange asset allocation suggestions

After exchanging Yen, instead of letting the money sit idle with no interest, choose the following based on your risk tolerance:

Conservative: Yen fixed deposit. Open a foreign currency account at E.SUN or Taiwan Bank, deposit online. Minimum NT$10,000, annual interest rate about 1.5-1.8%.

Mid-term: Yen insurance policy. Cathay or Fubon Life offer savings insurance with guaranteed interest rates of 2-3%.

Growth: Yen ETFs. Products like Yuanta 00675U, Cathay 00703 tracking Yen indices, can be bought as fractional shares via brokerage apps, suitable for regular investment.

Swing trading: Forex trading. Trade USD/JPY or EUR/JPY directly on forex platforms, suitable for investors with risk appetite. Benefits include two-way trading, 24/7 operation, and small capital requirements.

New restrictions on foreign currency withdrawal limits and anti-fraud measures

Starting October 2025, Taiwan Bank has strengthened anti-fraud measures, adjusting foreign currency ATM withdrawal limits:

Reminder: Digital accounts under Category 3 often have daily limits reduced to NT$100,000. It’s advisable to split withdrawals or use your own bank card to avoid cross-bank fees (NT$5 per transaction). During peak times like airports, cash may be sold out; plan ahead for safety.

Common Q&A about Yen exchange

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

Cash rate (Cash Rate) applies to physical cash buying and selling. Advantages are immediate delivery and portability; disadvantages are that it’s usually 1-2% worse than the spot rate plus handling fees, making it more costly.

Spot rate (Spot Rate) is the exchange rate for transactions settled within two working days (T+2) in the forex market, mainly used for electronic transfers and non-cash settlements. It offers more favorable rates but requires T+2 settlement.

Q. How much Yen can I get with NT$10,000?

Calculation: Yen amount = NT$ amount × current rate

Using Taiwan Bank’s December 10, 2025, cash selling rate of 4.85, NT$10,000 can get about 48,500 Yen. Using the spot selling rate (~4.87), it’s about 48,700 Yen, a difference of roughly 200 Yen (NT$40).

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

Taiwanese citizens: ID card + passport. Foreigners: passport + residence permit. For corporate exchanges, bring business registration. If pre-booked online, also bring transaction notice. Under 20, need parental consent and ID. For amounts over NT$100,000, may need to declare source of funds.