The Japanese Yen exchange rate has risen by 8%! The ultimate guide for Taiwan to exchange Yen in 2025

This year, the Japanese yen has performed strongly, with the NT$ to JPY exchange rate rising to 4.85, an accumulated appreciation of 8.7% compared to 4.46 at the beginning of the year. For Taiwanese investors, this is not only a signal for travel and consumption but also an opening of a window of opportunity for risk-hedged asset allocation. Whether planning to travel to Japan, purchase Japanese goods through proxy shopping, or布局 a global asset portfolio, how to efficiently exchange currency has become a concern for many.

Why should you pay attention to the JPY exchange rate now?

The Japanese yen is not just “pocket money” for travel; from a financial market perspective, it ranks among the world’s three major safe-haven currencies alongside the US dollar and Swiss franc. When stock markets are volatile or geopolitical risks escalate, capital tends to flow into the yen for safety — during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a single week, effectively buffering stock declines.

For Taiwanese investors, holding yen as a hedge under NT$ depreciation pressure adds a layer of protection against Taiwan stock market fluctuations. More importantly, the Bank of Japan has recently shifted to a more hawkish stance, with Ueda Kazuo’s rate hike expectation reaching 80%, and a possible increase to 0.75% at the December 19 meeting (a 30-year high), which will further support the appreciation of the yen.

In daily life, scenarios such as travel, proxy shopping, studying, working, or working holiday require yen, and most Japanese merchants still primarily deal in cash (credit card penetration is only about 60%).

Four practical channels for exchanging yen: comparison of costs and features

There are more than one way to exchange for yen on the market, and even just the difference in exchange rates could cost you the price of a few cups of bubble tea. Below is an in-depth comparison of the costs and characteristics of each channel.

Channel 1: Foreign currency ATMs — The most flexible temporary solution

Using a chip-enabled financial card to withdraw yen cash at a bank’s foreign currency ATM. The biggest advantage is that it operates 24/7, with a cross-bank handling fee of only 5 NT$. E.SUN Bank’s foreign currency ATMs allow NT$ accounts to withdraw yen up to a daily limit of 150,000 NT$, with no currency exchange fee.

Estimated cost: Exchanging 50,000 NT$ results in a loss of about 800–1,200 NT$

Advantages: Immediate withdrawal, high flexibility, very low cross-bank fees

Limitations: Limited locations (about 200 nationwide), fixed denominations (1,000/5,000/10,000 yen), cash may run out during peak hours

Suitable for: People who don’t have time to visit banks or need quick, on-the-spot cash

Channel 2: Online currency exchange + airport pickup — The best pre-departure plan

No need to open a foreign currency account beforehand. Simply fill out exchange info, amount, and pickup branch on the bank’s official website. After completion, bring ID and transaction notification to pick up at the counter. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee, and paying via Taiwan Pay costs only 10 NT$. The exchange rate offers about 0.5% better than the spot rate.

Taoyuan Airport has 14 Taiwan Bank counters (including 2 open 24/7), making this plan ideal for well-planned travelers—allowing you to reserve 1–3 days in advance and pick up cash directly at the airport on departure.

Estimated cost: Exchanging 50,000 NT$ results in a loss of about 300–800 NT$

Advantages: Favorable exchange rate, often no handling fee, option to specify airport pickup

Limitations: Requires reservation in advance, pickup time limited by bank hours

Suitable for: Well-planned travelers who want to pick up cash at the airport

Channel 3: Online exchange + counter pickup — The investor’s top choice

Using online banking or app, 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 withdrawal is needed, you can handle it at the counter or ATM, but it will incur a currency conversion fee (starting around 100 NT$ equivalent).

This method is best for monitoring exchange rate trends; buy in batches when the rate is low (e.g., NT$ to JPY below 4.80), averaging your cost. Cross-bank withdrawal fees range from about 5–100 NT$.

Estimated cost: Exchanging 50,000 NT$ results in a loss of about 500–1,000 NT$

Advantages: 24/7 operation, ability to average cost over multiple transactions, relatively favorable exchange rate

Limitations: Need to open a foreign currency account beforehand; withdrawal of cash incurs additional fees

Suitable for: Experienced forex traders or long-term yen holders

Channel 4: Counter exchange — The traditional but most costly method

Carrying NT$ cash directly to a bank branch or airport counter to exchange for yen cash. Although straightforward, it uses the “cash selling rate” (about 1–2% worse than spot rate), and some banks may charge handling fees, making it the most expensive option.

As of December 10, 2025, Taiwan Bank’s cash selling rate was approximately 0.2060 NT$/JPY (meaning NT$1 gets about 4.85 yen). Some banks like E.SUN and Yuanta charge an additional fee of NT$100–200.

Estimated cost: Exchanging 50,000 NT$ could result in a loss of 1,500–2,000 NT$

Advantages: Safe, reliable, denominations available, in-person assistance

Limitations: Worse exchange rate, limited operating hours (weekdays 9:00–15:30), potential extra fees

Suitable for: Those unfamiliar with online methods or needing small, temporary exchanges

Is now really a good time to exchange for yen?

Based on the current exchange rate of NT$4.85 to JPY, it is indeed worth exchanging now. But the key is to “do it in batches, not all at once.”

The yen remains volatile. With the US entering a rate-cut cycle and the Bank of Japan on the verge of rate hikes, USD/JPY has fallen from a high of 160 at the start of the year to around 154.58. Short-term fluctuations around 155 are likely, but medium- to long-term forecasts suggest further declines below 150.

For investment purposes, yen serves as a safe-haven asset, suitable for hedging Taiwan stock market risks. However, be aware that global arbitrage unwinding or geopolitical conflicts (e.g., Taiwan Strait, Middle East) could temporarily depress the yen, causing 2–5% volatility.

Recommended strategies:

• For travelers: Exchange online 1–2 weeks in advance and pick up at the airport
• For investors: Buy in 3–4 batches within the 4.80–4.90 range to average costs
• For urgent needs: Prioritize using foreign currency ATMs to avoid high counter fees

Advanced asset allocation after exchanging yen

After exchanging, continuing to grow your funds is crucial. Here are four common, beginner-friendly options for small amounts:

Yen fixed deposit: A conservative choice. E.SUN and Taiwan Bank offer online foreign currency accounts with minimum deposits of 10,000 yen and annual interest rates around 1.5–1.8%.

Yen insurance: Medium-term holding. Cathay and Fubon life offer savings insurance with guaranteed rates of 2–3%, suitable for low-risk investors.

Yen ETFs: Growth-oriented. Yuanta 00675U tracks yen indices, can be bought as fractional shares via broker apps, and charges an annual management fee of 0.4%.

Forex trading: Directly trade USD/JPY, EUR/JPY, or other currency pairs on forex platforms, engaging in swing trading. The advantage is being able to go long or short, 24/7 trading, with minimal capital.

Common questions about currency exchange

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

Cash rate is provided by banks for physical cash transactions, suitable for travel; it involves immediate delivery but costs higher (typically 1–2% plus handling fees). Spot rate is the foreign exchange market’s T+2 settlement rate, mainly for electronic transfers, more favorable but requires waiting for settlement.

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

Using Taiwan Bank’s cash sell rate of 4.85, about 48,500 yen. With the spot rate of 4.87, about 48,700 yen, a difference of about 200 yen (roughly 40 NT$).

Q: What documents are needed for counter exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. For company accounts, business registration certificate. For online reservations, bring transaction notification. Under 20 requires parental accompaniment; exchanging over 100,000 NT$ may require declaring source of funds.

Q: Are there limits on ATM cash withdrawals?

Different banks have different limits. CTBC Bank’s card: daily equivalent of NT$120,000; Taishin Bank: NT$150,000; E.SUN Bank: NT$150,000 (including sign bill). Cross-bank daily limits usually range from NT$100,000 to NT$150,000. It’s advisable to split withdrawals or use your own bank card to avoid cross-bank fees.

Multi-currency布局 strategy

When exchanging for yen, don’t overlook the value of diversifying into other Asian currencies, such as KRW, PHP, SGD, etc., which have potential for hedging or appreciation in different market conditions. Start with yen, the most liquid among these, then gradually expand to other emerging market currencies as you become more familiar.

Summary

The yen has become both a travel and investment asset. Mastering the core principles of “batch exchange + don’t just stand by after exchanging” and choosing the most suitable exchange channels will not only make your trips more cost-effective but also add a layer of protection during market turbulence. Beginners are recommended to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then allocate funds into fixed deposits, ETFs, or swing trades based on your needs, gradually building a comprehensive yen asset portfolio.