Yen Exchange Guide: The 4 Latest Methods in 2025 Fully Explained

As of December 10, 2025, the Taiwan dollar has appreciated to 4.85 against the Japanese yen, up approximately 8.7% from 4.46 at the beginning of the year. This market trend has led many to focus on yen investments and currency exchange for travel. But do you know? Choosing the wrong currency exchange method can eat up several thousand NT dollars in spread and fees.

Why is the yen worth paying attention to? Besides being essential for travel, it is also one of the world’s three major safe-haven currencies alongside the US dollar and Swiss franc. Compared to the Malaysian ringgit, which fluctuates more when exchanging for USD or other emerging currencies, the yen’s stability makes it a good hedge asset. This article will compare four currency exchange channels to help you find the most cost-effective way.

Why is now the time to exchange for yen?

The yen plays a special role in the global financial market. As a safe-haven currency, funds flow into the yen during stock market turbulence—during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a single week, successfully buffering stock declines. For Taiwanese investors, holding yen is not just for travel but also to hedge against Taiwan stock market volatility.

The Bank of Japan’s interest rate hike expectations have also boosted the yen’s attractiveness. Governor Ueda’s latest hawkish remarks have pushed the rate hike probability to 80%, with the market expecting a rate increase to 0.75% on December 19 (a 30-year high). USD/JPY has fallen from the high of 160 at the start of the year to 154.58, with further long-term forecasts below 150.

In the second half of the year, Taiwan’s currency exchange demand grew by 25%, mainly driven by travel recovery and hedging needs. But the key is choosing the right exchange method, as cost differences can reach NT$1,500–2,000.

Comprehensive comparison of 4 currency exchange channels

First: Traditional counter exchange—simple but most costly

Bring NT$ directly to a bank or airport counter to exchange for cash yen on the spot. This is the most traditional method, with the advantage of safety and immediate cash. The downside is using the “cash selling rate” (1-2% worse than the spot rate), plus possible service fees, making it more expensive.

Estimating NT$50,000, the loss is about NT$1,500–2,000. Suitable for those unfamiliar with online operations or urgent airport needs.

December 10, 2025, bank cash selling rates and fees comparison

Second: Online currency exchange with account—preferred by investors

Use bank app or online banking to transfer NT$ into a foreign currency account holding yen, using the spot selling rate (about 1% better than cash rate). If cash is needed later, withdraw at counters or foreign currency ATMs, but additional fees apply.

This method is best for those experienced with forex, as it allows 24-hour operation, batch purchases for average cost, and more favorable rates. For NT$50,000, the loss is about NT$500–1,000. Many buy in batches when the rate is low (below 4.80), and later transfer into fixed deposits (interest rate about 1.5–1.8%) or yen ETFs (e.g., Yuanta 00675U).

Disadvantage: Need to open a foreign currency account first; cash withdrawal incurs additional fees (NT$5–100 cross-bank), and withdrawal times are limited to banking hours.

Third: Online pre-arranged currency exchange—best before travel

No need for a foreign currency account. Fill in currency, amount, branch, and date on the bank’s website. After transfer, bring ID and transaction notice to pick up at the counter. Taiwan Bank and Mega Bank offer this service, with some branches at airports, even 24-hour service.

Taiwan Bank’s “Easy Purchase” online exchange has no fee (pay NT$10 via Taiwan Pay), with a 0.5% better rate. Ideal for planned travelers—Taoyuan Airport has 14 Taiwan Bank counters, 2 of which are open 24 hours. For NT$50,000, the loss is only NT$300–800.

Disadvantage: Requires prior appointment (1–3 days), and pickup is limited to banking hours; branch changes are not allowed.

Fourth: Foreign currency ATM withdrawal—quick emergency solution

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen directly, 24/7. Deducts only NT$5 cross-bank fee from your NT$ account, no pre-registration needed. SinoPac’s foreign currency ATMs have a daily limit of NT$150,000, with no exchange fee.

Highly flexible, suitable for busy workers without time to visit banks. For NT$50,000, the loss is about NT$800–1,200. However, there are only about 200 such ATMs nationwide, and during peak times, cash may run out. Denominations are fixed at 1,000/5,000/10,000 yen.

Note: Japan’s ATM withdrawal services changed at the end of 2025, now using international cards (Mastercard/Cirrus).

Summary table of 4 exchange methods

Difference between cash rate and spot rate: what you need to know

Cash rate is the rate banks offer for physical bills and coins, suitable for travel exchange or on-site transactions. The advantage is immediate cash, but the rate is usually 1–2% worse than the spot rate, with higher costs.

Spot rate is the foreign exchange market rate for settlement within two working days (T+2), used for electronic transfers and non-cash settlement. It is closer to international market prices but requires T+2 settlement.

For example, Taiwan Bank’s cash selling rate is about NT$0.2060 per yen, while the spot rate is about NT$0.2065, a small difference but significant over large amounts.

What to do after exchanging? Don’t let your money sit idle

After exchanging yen, don’t leave it unused. Based on your risk preference, here are four common options:

1. Yen fixed deposit: The safest choice. Open an FX account at E.SUN or Taiwan Bank, with a minimum of 10,000 yen, offering 1.5–1.8% annual interest. Suitable for conservative investors.

2. Yen savings insurance: Medium-term holding. Cathay or Fubon life insurance savings plans offer guaranteed 2–3% interest, suitable for 2–5 year investments.

3. Yen ETFs: Growth-oriented. Yuanta 00675U tracks the yen index, can be bought as fractional shares via broker apps, ideal for dollar-cost averaging. Management fee is 0.4% annually.

4. Forex swing trading: Advanced. Trade USD/JPY or EUR/JPY directly on forex platforms to catch rate fluctuations. Benefits include two-way trading and 24-hour market, but risk management is essential.

While yen is a safe haven, it also fluctuates bidirectionally. BOJ rate hikes are positive, but global arbitrage unwinding or geopolitical conflicts may push rates down 2–5%. It’s recommended to buy in batches to avoid all-in exposure.

FAQs

Q. How much yen do I get for NT$10,000?

Calculation: Yen amount = NT$ amount × current rate (TWD/JPY)

Using Taiwan Bank’s cash rate 0.2060, NT$10,000 ≈ 48,500 yen. Using spot rate 0.2065, ≈ 48,400 yen. Difference is about 200 yen (~NT$40).

Q. What ID do I need for counter exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit; companies: business registration. For online booking, bring transaction notice. Under 20 need parent’s consent; amounts over NT$100,000 require source declaration.

Q. Is there a limit for foreign currency ATM withdrawal?

Limits vary by bank due to new regulations in 2025. CTBC: NT$120,000/day; Taishin: NT$150,000; E.SUN: NT$50,000 per transaction, NT$150,000 per day. Digital accounts may have stricter limits, e.g., NT$100,000/day. Consider spreading withdrawals or using your own bank card to avoid cross-bank fees.

Lazy guide to deciding on yen exchange

The core principle: Batch exchange + don’t leave your money idle.

• Budget NT$50,000–200,000: Use “online pre-arranged exchange + airport pickup” or “foreign currency ATM” for lowest cost.
• Experienced in forex: Use online exchange to buy in batches, then invest in yen deposits or ETFs.
• Urgent needs: Use foreign currency ATM for same-day withdrawal, but beware of cash shortages.
• Well-planned: Book online 1–3 days in advance, then pick up directly before travel.

Yen has evolved from a “travel petty cash” to an asset with hedging and investment value. Compared to the volatility of other emerging currencies like MYR/USD, yen’s stability is better. Use exchange tools wisely, seize rate hike opportunities, and timely allocate into deposits or ETFs to add a layer of protection during market turbulence.