In the era of Taiwanese dollar depreciation, how to smartly exchange for Japanese Yen? A guide to mastering 4 major exchange channels

Now is the Time to Exchange for Yen

By December 2025, the NT$ to Japanese Yen exchange rate has reached 4.85, an 8.7% increase from 4.46 at the beginning of the year. For those with idle funds, this is not only a travel prep but also a good opportunity to hedge against Taiwan stock market risks—since the Yen is one of the world’s three major safe-haven currencies.

According to the latest data, Taiwan’s foreign exchange demand in the second half of the year has grown by 25%, half of which comes from the recovery of outbound travel, and the other half from investors looking to hedge against NT$ depreciation by moving funds into Yen. So, is it worthwhile to exchange for Yen now? The answer is yes, but the key is how to exchange.

4 Ways to Exchange for Yen, with Varying Costs

Many people think that exchanging cash at the bank counter is the only option, but in reality, just the exchange rate difference can cost you the price of several bubble teas. For example, with NT$50,000, the loss can differ by over NT$1,000 depending on the method.

Method 1: Bank Counter Cash Exchange (Most Traditional, Highest Cost)

Bring NT$ cash to the bank or airport counter to exchange for Yen cash. Simple to operate, but uses the “cash selling rate,” which is about 1-2% worse than the spot rate, plus possible handling fees, making it the most expensive option.

Taiwan Bank’s rate on December 10, 2025, is approximately 0.2060 NT$ per 1 Yen (i.e., NT$1 = 4.85 Yen), but rates vary among banks. E.SUN, Cathay United Bank, and others may also charge an additional NT$100-200 handling fee at the counter.

Cost: Loss of NT$1,500-2,000
Suitable for: Urgent airport needs, unfamiliar with online operations

Method 2: Online FX Conversion, Withdraw at Counter or ATM (Moderate Cost, High Flexibility)

Use bank app or online banking to convert at the “spot sell rate” into Yen and deposit into a foreign currency account, then withdraw cash at the counter or foreign currency ATM. This saves the 1-2% difference in cash exchange rates but still incurs withdrawal fees (around NT$100 or more).

E.SUN Bank’s foreign currency ATMs support 24-hour withdrawals, with a NT$5 interbank fee deducted directly from the NT$ account, and a daily limit of NT$150,000. Very convenient for those who don’t have time to visit the bank.

Cost: Loss of NT$500-1,200
Suitable for: Busy professionals who can’t visit the bank, need flexibility

Method 3: Online Currency Purchase, Pick Up at Airport (Lowest Cost, Requires Planning)

Fill in currency, amount, and pickup branch on the bank’s website, complete the transfer, then bring ID and transaction notice to pick up. Taiwan Bank’s “Easy Purchase” online FX service has no handling fee (pay NT$10 via Taiwan Pay), and offers a 0.5% better rate.

The biggest advantage is the ability to reserve at Taoyuan Airport’s Taiwan Bank branches (14 in total, 2 open 24 hours), so you can pick up Yen directly at the airport before departure, saving the hassle of visiting the bank. The downside is that you need to book 1-3 days in advance, and pickup times must align with bank hours.

Cost: Loss of NT$300-800
Suitable for: Well-planned travelers, those who decide a week before departure

Method 4: Foreign Currency ATM Withdrawal Anytime (Fastest, Limited Locations)

Use a chip-enabled financial card to withdraw Yen cash directly from bank foreign currency ATMs, which operate 24/7. Only NT$5 fee for interbank transactions, no additional FX costs. However, there are only about 200 such ATMs nationwide, mainly in big cities and airports, and cash shortages may occur during peak times.

Cost: Loss of NT$800-1,200
Suitable for: Emergency needs, those who haven’t planned ahead

A Table to Understand the Four Methods Instantly

Beginner Tips: If your budget is NT$50,000-200,000, “Online FX + Airport Pickup” is the most cost-effective; if uncertain about pickup timing, use foreign currency ATMs as a backup.

After Exchanging Yen, Don’t Let It Sit Idle

Once you’ve exchanged for Yen, don’t just leave it sitting idle. Depending on your risk appetite, here are some options:

Conservative: Yen Fixed Deposit
Start from NT$10,000, with an annual interest rate of 1.5-1.8%. E.SUN Bank and Taiwan Bank offer this, and online account opening is easy. Suitable for short-term travel or small investments, providing steady interest income.

Moderate Risk: Yen ETFs
Yuanta 00675U tracks the Yen index and can be bought as fractional shares via brokerage apps, suitable for regular investment. Management fee is 0.4% annually, and compared to forex volatility, the risk is relatively mild.

Advanced: Forex Swing Trading
For higher potential returns, try trading USD/JPY or EUR/JPY. Platforms with zero commissions and low spreads allow small capital participation, with 24-hour trading and both long and short positions—classic ways to capture exchange rate fluctuations. Be aware that the Bank of Japan is expected to raise interest rates to 0.75% on December 19, which could cause short-term volatility of 2-5%.

Some Practical Tips

1. Exchange in Batches, Not All at Once
Yen rates recently fluctuate between 154-155. Short-term uncertainty remains, so staggered purchases can average out costs.

2. Declare Large Amounts When Exchanging
Exchanges over NT$100,000 may require source of funds declaration; prepare ID and necessary documents.

3. Foreign Currency ATMs Often Out of Stock
Especially at airports and crowded areas, cash shortages happen during peak times. Don’t wait until the last minute to withdraw.

4. Keep an Eye on BOJ Movements
As a safe-haven currency, Yen is heavily influenced by central bank policies. The current rate hike expectation supports Yen, but watch for volatility from global arbitrage unwinding.

In short, in an era of NT$ depreciation and Yen appreciation, smartly exchanging for Yen has become a basic financial skill. Choosing the right exchange method can save thousands, and after that, flexibly allocating into fixed deposits or ETFs can maximize Yen’s value—allowing you to travel confidently and hedge investment risks at the same time.