Comprehensive Guide to Yen Exchange: How Much is 1 Million Yen in TWD? Cost Test of Four Major Channels

Is it cost-effective to exchange for Japanese Yen now? Check the exchange rate first and then decide

As of December 10, 2025, the NT$ to JPY exchange rate reached 4.85, meaning about 48,500 JPY can be exchanged for 10,000 NT$. Compared to the beginning of the year at 4.46, the NT$ has appreciated approximately 8.7% against the JPY. This wave of appreciation has brought considerable exchange gains for small investors.

Based on this rate, 1 million JPY is approximately equal to 206,200 NT$ (1,000,000 ÷ 4.85). But the question is: can you accept this price? It depends on which exchange channel you choose.

According to market data, demand for JPY exchange in Taiwan grew by 25% in the second half of the year, mainly driven by tourism recovery and hedging needs. The Bank of Japan’s rate hike expectations are heating up (Governor Ueda Kazuo’s hawkish comments pushed the probability of a rate hike to 80%), with a projected increase of 0.25 bps to 0.75% on December 19, supporting the medium-term attractiveness of the yen.

Four major exchange channels with large cost differences

Many think exchanging JPY just involves walking into a bank and saying a word, but in reality, the exchange spread alone can cost you several cups of bubble tea. We tested four mainstream methods with real data.

Method 1: Bank counter or airport cash exchange

This is the most traditional and straightforward approach—bring cash to a bank or airport counter and exchange at the cash selling rate on the spot.

Cost: Highest. Cash exchange rates are usually 1-2% worse than the spot rate, plus some banks charge handling fees. Exchanging 50,000 NT$ could lose you 1,500-2,000 NT$.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT$/JPY (equivalent to 4.85 JPY/NT$), but banks like E.SUN and Taipei Fubon charge an additional 100-200 NT$ per transaction.

Advantages: Safe, full denominations, staff assistance on-site.
Disadvantages: Exchange rate spread, limited operating hours (weekday 9:00-15:30).
Suitable for: Travelers who are not familiar with online banking or need urgent cash at the airport.

Method 2: Online transfer to foreign currency account, then cash withdrawal

Use bank app or online banking to convert NT$ to JPY at the spot selling rate, and store it in a foreign currency account. To withdraw cash, pay an additional handling fee (interbank transfer 5-100 NT$).

Cost: Moderate. Better exchange rate than counter service by about 1%, but with an extra withdrawal fee. Exchanging 50,000 NT$ could lose you 500-1,000 NT$.

Advantages: 24-hour online operation, favorable rates, ability to buy in installments for average cost.
Disadvantages: Need to open a foreign currency account first, withdrawal fees apply.
Suitable for: Readers with forex experience, planning to hold JPY long-term in deposits or investments.

Method 3: Online currency exchange reservation, pick-up at designated branch

No need to open a foreign currency account in advance. Fill in amount, pick-up date, and branch on the bank’s website. After completing the online transaction, bring ID and notification to the counter for pickup. Taiwan Bank’s “Easy Purchase” and Mega International Bank offer this service, with airport branch reservations available.

Cost: Lowest. Taiwan Bank’s online currency exchange is fee-free (pay only 10 NT$ via Taiwan Pay), with about 0.5% favorable rate. Exchanging 50,000 NT$ costs only 300-800 NT$ in losses.

Taoyuan Airport has 14 Taiwan Bank outlets, 2 of which operate 24 hours. Plan your time before departure; direct airport pickup is most convenient.

Advantages: Best exchange rate, often no handling fee, can choose airport pickup.
Disadvantages: Requires reservation (at least 1-3 days in advance), pickup time limited by bank hours.
Suitable for: Well-planned travelers who want to save costs.

Method 4: Foreign currency ATM 24-hour self-service withdrawal

Use a chip-enabled financial card at foreign currency ATMs to withdraw JPY cash instantly, supporting interbank operations. E.SUN Bank’s foreign currency ATMs allow withdrawal from NT$ accounts without currency exchange fees, with a daily limit of 150,000 NT$.

Cost: Moderate. Interbank fee is only 5 NT$, but ATM denominations are fixed (1000/5000/10000 JPY). Exchanging 50,000 NT$ results in a loss of 800-1,200 NT$.

Advantages: 24/7 access, flexible, low interbank fees.
Disadvantages: Only about 200 ATMs nationwide, limited denominations, cash may run out during peak times.
Suitable for: Readers with no time to visit banks or urgent needs.

Cost comparison table for the four methods

Based on an estimated exchange of 50,000 NT$ (December 2025 data):

For beginners, the recommended combination: Online currency exchange + airport pickup or small multiple withdrawals via foreign currency ATM to diversify costs.

How to operate when exchanging 1 million JPY?

At the current rate of 4.85, 1 million JPY is about 206,200 NT$. For such a large amount, it’s advisable to split into three steps:

Step 1: Decide the timing of exchange
Don’t exchange all at once. JPY short-term fluctuations of 2-5% can be smoothed by staggered entry. For example, exchange 300,000 JPY first, observe for a week, then 400,000 JPY, and finally 300,000 JPY.

Step 2: Choose the lowest-cost channel
Pre-arranged online currency exchange or multiple withdrawals via foreign currency ATM (note daily limits). Avoid counter cash exchange unless urgent.

Step 3: After exchange, don’t leave the money idle
JPY can be placed into a zero-interest account, or converted into JPY fixed deposits (annual interest 1.5-1.8%, starting from 10,000 JPY), JPY insurance policies (guaranteed interest 2-3%), or JPY ETFs (tracking JPY index), to keep the money growing.

Why exchange for JPY?

Tourism and daily life

Most stores in Japan still prefer cash (credit card penetration only 60%), so shopping in Tokyo, skiing in Hokkaido, or vacationing in Okinawa often requires cash. Additionally, demand for Japan’s cosmetics, fashion, and anime merchandise is strong, requiring direct payment in yen.

Financial hedging

The yen is one of the top three safe-haven currencies globally (alongside USD, CHF). Japan’s economy is stable with low debt. During market turbulence, funds flow into the yen—during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while stocks fell 10%. For Taiwanese investors, holding yen can hedge against Taiwan stock market risks.

Arbitrage opportunities

Japan maintains ultra-low interest rates (around 0.5%), so many investors borrow yen at low interest and arbitrage into higher-yield USD (USD/JPY interest rate spread of 4.0%), then close positions when risks rise, buying back yen. This is a common strategy in global financial markets.

Common questions before and after exchange

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

Cash exchange rate: The rate banks offer for physical bills and coins, used for travel exchange or on-site transactions. The advantage is immediate cash; the disadvantage is it’s 1-2% worse than the spot rate, with higher handling costs.

Spot rate: The exchange rate in the foreign exchange market settled within two business days (T+2), used for electronic transfers and cashless transactions. It’s closer to international market prices but involves waiting for settlement.

How much JPY can I get for 10,000 NT$?

Using the formula: JPY amount = NT$ amount × exchange rate
At Taiwan Bank’s cash sell rate of 4.85 on December 10, 2025, 10,000 NT$ exchanges for about 48,500 JPY.
If using the spot rate of 4.87, it’s about 48,700 JPY, a difference of roughly 200 JPY (about NT$40).

What documents are needed to exchange foreign currency?

For counter transactions: ID + passport (for foreigners, passport + residence permit).
Under 20 years old need parental consent and approval letter.
Large exchanges (over 100,000 NT$) may require source of funds declaration.
If pre-booked online, bring transaction notification.

What is the daily withdrawal limit at foreign currency ATMs?

Regulations vary by bank (adjusted from October 2025 to prevent fraud):

• CTBC Bank: equivalent to 120,000 NT$ per day on the bank card, 20,000 NT$ per transaction for other banks
• Taishin Bank: equivalent to 150,000 NT$ per day on the bank card, depends on issuing bank for others
• E.SUN Bank: equivalent to 150,000 NT$ per day on the bank card, depends on issuing bank for others

It’s recommended to diversify withdrawals or use your own bank card to avoid interbank fees. During peak times (like airports), cash may run out, so plan ahead.

After exchanging JPY, how to invest for growth?

1. JPY fixed deposit

Open a foreign currency account with E.SUN, Taiwan Bank, etc., deposit online. Minimum 10,000 JPY, annual interest 1.5-1.8%, very low risk.

2. JPY insurance policies

Cathay, Fubon offer JPY savings insurance with guaranteed interest rates of 2-3%, suitable for medium-term holding.

3. JPY ETFs

Yuan Da 00675U and others tracking JPY index, buy fractional shares via broker apps, suitable for regular investment to diversify currency risk.

4. JPY currency pair trading

Trade USD/JPY, EUR/JPY etc., on forex platforms to capture exchange rate fluctuations. Advantages include long/short positions, 24-hour trading, suitable for experienced traders.

Final reminders

While the yen has a safe-haven halo, it is also a two-way volatile asset. The BOJ’s rate hikes are positive for the yen, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) can temporarily depress the exchange rate.

For travel, “online currency exchange + airport pickup” is the easiest. For investment, consider staggered entry, partial transfers into fixed deposits or ETFs to diversify risk and increase returns. This way, currency exchange for travel is more cost-effective, and you gain an extra layer of protection during global market fluctuations.

Whether exchanging 1 million or 10 million JPY, the same logic applies: staggered operation + low-cost channels + don’t leave the money idle after exchange—this is the smartest strategy for exchanging JPY.