Is exchanging 50,000 TWD to JPY a big difference? Understand the most cost-effective exchange method once and for all

The NT$ to JPY exchange rate has now reached around 4.85. More and more people are planning to travel abroad or hedge against NT$ depreciation by exchanging currency. But did you know? Using the same NT$50,000, choosing the wrong channel could cost you an extra NT$1,500 to NT$2,000—equivalent to eating a dozen more bowls of ramen in Japan.

Calculate the costs first, then decide how to exchange

Many think that exchanging yen means lining up at the bank, but in reality, just the difference in exchange rates can cause significant losses. Based on the latest rates from various banks as of December 10, 2025, we’ve calculated the true cost of currency exchange for you.

4 common currency exchange channels and their real costs

Over-the-counter cash exchange: simplest but most expensive

Bringing NT$ to a bank or airport counter to exchange for cash yen is the most traditional method. The problem is that banks use the “cash selling rate,” which is about 1-2% worse than the market spot rate. For example, Taiwan Bank’s cash selling rate is about 0.2060 NT$/JPY (meaning NT$1 exchanges for 4.85 JPY). Exchanging NT$50,000 would result in a loss of about NT$1,500 to NT$2,000. Plus, some banks charge an additional NT$100 to NT$200 handling fee, increasing the cost further.

This method is suitable for urgent airport needs or small amounts, but if you plan ahead, you shouldn’t choose this.

Online currency exchange to deposit account: flexible but staged

Using bank apps or online banking, convert at the “spot selling rate” (about 0.2065 NT$/JPY) directly into yen and deposit into a foreign currency account. This offers about 1% better rate. Later, if you want cash yen, you can withdraw at the counter or via foreign currency ATM, but there will be withdrawal fees of NT$100 to NT$500. Exchanging NT$50,000 this way costs about NT$500 to NT$1,000.

The advantage is you can do it in stages—buy when the rate is low (e.g., NT$ to JPY below 4.80), averaging your cost. Especially suitable for those with forex investment experience or wanting to allocate yen deposits, since opening a foreign currency account is necessary anyway.

Online reservation for currency exchange, pick up at the airport: smartest travel plan

Taiwan Bank and Mega International Bank offer this service. Fill in the amount, specify the airport branch, and pick-up date online. After completing the transfer, bring your ID and transaction notice to the airport to pick up cash. Taiwan Bank’s “Easy Purchase” even waives handling fees (pay NT$10 via TaiwanPay), with about 0.5% better rate, costing only NT$300 to NT$800 for NT$50,000.

Taoyuan Airport has 14 Taiwan Bank counters, including 2 open 24 hours, very convenient for last-minute needs before departure. Note that reservations are required at least 1-3 days in advance, and pick-up times are only during bank hours.

Foreign currency ATM withdrawals anytime: most flexible but with restrictions

Using chip-enabled bank cards at foreign currency ATMs to withdraw cash yen 24/7. It costs NT$5 cross-bank fee per withdrawal from your NT$ account. Fubon Bank’s foreign currency ATMs have no exchange fee, with a daily limit of NT$150,000, costing about NT$800 to NT$1,200.

The issue is that there are only about 200 foreign currency ATMs nationwide, and during peak times (especially at airports), cash often runs out. Denominations are fixed at 1,000, 5,000, or 10,000 yen. Suitable for urgent needs but not as a primary exchange method.

Best choices for different scenarios

Travel abroad (plan a week ahead): Use Taiwan Bank’s online currency exchange reservation for airport pickup—cost-effective and convenient, about NT$300 to NT$800.

Larger amounts (over NT$200,000): Stage your exchange via online deposit accounts, gradually entering at favorable rates, saving much more than a one-time over-the-counter exchange.

Emergency (realized at the airport that you forgot to exchange): Although the cash selling rate difference exists, accept it—costs about NT$1,500 to NT$2,000. Learn from this for next time.

Long-term yen investment: Use online currency exchange to deposit accounts, then transfer into yen fixed deposits or ETFs (00675U, 00703), avoiding physical cash altogether.

What’s the current position of the yen exchange rate?

As of December 10, 2025, NT$ to JPY is about 4.85, appreciating roughly 8.7% from the start of the year’s 4.46. For those wanting to exchange yen, this yields a considerable gain, especially given the NT$ depreciation pressure.

But it doesn’t mean now is the absolute best timing. According to central bank and international market analyses, several key factors influence the yen:

The Bank of Japan is about to raise interest rates. BOJ Governor Ueda Kazuo recently signaled a hawkish stance. Market expectations for a rate hike have risen to 80%, with a 0.25 basis point increase to 0.75% expected at the December 19 meeting (a 30-year high). This would support yen appreciation. Meanwhile, Japanese government bond yields hit a 17-year high of 1.93%.

USD/JPY faces correction. From a high of 160 at the start of the year, USD/JPY has fallen to around 154.58. Short-term, it may rebound slightly to 155, but medium to long-term forecasts suggest below 150.

Safe-haven demand remains strong. As one of the three major safe-haven currencies (alongside USD and CHF), the yen attracts funds during global market volatility. However, watch out for the risk of short-term profit-taking unwinding, which could cause a 2-5% fluctuation in the yen.

Conclusion: It’s a good time to exchange yen, but staged operations are recommended. Don’t convert everything at once; do it in 2-3 batches at different rates. This way, you can seize appreciation opportunities while reducing the risk of being caught by short-term swings.

After exchanging yen, don’t let your money sit idle

Many people just hold onto their yen after exchanging, but that’s essentially giving up potential gains. Based on market conditions at the end of 2025, here are some good options for your yen:

Yen fixed deposit: The most stable choice. Open a foreign currency account at E.SUN Bank or Taiwan Bank, deposit yen online, with a minimum of 10,000 yen, annual interest rate about 1.5-1.8%. For example, 50,000 yen yields NT$800-900 annually—modest but steady.

Yen insurance policies: Medium-term allocation. Cathay or Fubon’s USD/JPY savings insurance offers guaranteed interest rates of 2-3%, suitable for funds not needed for 1-3 years.

Yen ETFs: Growth-oriented. Yuanta’s 00675U tracks the yen index, available as fractional shares via broker apps, suitable for dollar-cost averaging. Management fee only 0.4%. If bullish on yen appreciation, this is a way to capture gains.

Forex trading: Swing strategy. Use platforms like Mitrade to trade USD/JPY or EUR/JPY directly, with zero commissions, low spreads, 24-hour buy/sell, and small capital required. Ideal for experienced forex traders aiming to catch short-term rate movements.

Five key questions before exchanging yen

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

Cash rate is the price banks offer for physical cash, suitable for travel exchange. It’s convenient for immediate cash but about 1-2% worse than market rates. Spot rate is the foreign exchange market price for settlement within two business days, mainly for electronic transfers, offering better rates but requiring T+2 settlement.

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

Using Taiwan Bank’s December 10, 2025, cash selling rate of 4.85, NT$10,000 exchanges for about 48,500 yen. With the spot selling rate of about 4.87, it’s roughly 48,700 yen—only a 200 yen difference (~NT$40).

Q: What ID do I need for over-the-counter exchange?

Locals need ID card and passport; foreigners need passport and residence permit. If pre-booked online, bring transaction notice. Under 20 requires a parent. For amounts over NT$100,000, may need to declare source of funds.

Q: Are there limits on foreign currency ATM withdrawals?

From October 2025, limits vary: CTBC Bank equivalent NT$120,000/day; Taishin Bank NT$150,000/day; E.SUN Bank NT$150,000/day (including debit). But your bank card’s single transaction limit is NT$50,000. Consider splitting withdrawals or using your own bank card to avoid cross-bank fees.

Q: What factors influence the NT$ and JPY exchange rate?

Main factors include BOJ policies (interest rate hikes, bond purchases), USD strength, global risk sentiment, and geopolitical events (Taiwan Strait, Middle East conflicts). Yen tends to appreciate during risk events and depreciate during profit-taking or arbitrage unwinding.

Final advice

The yen is no longer just “pocket money” for travel but also a hedge and investment asset. With NT$ to JPY at 4.85, the costs and benefits of exchange are worth careful consideration.

For beginners, the simplest approach is Taiwan Bank’s online exchange combined with airport pickup—cost-effective and convenient. Experienced investors can stage their exchange online, then allocate into fixed deposits or ETFs. The key principles are staged exchange and not letting your money sit idle after conversion—minimize costs and maximize gains.

This way, you can enjoy more affordable travel and add a layer of protection against market fluctuations.