Yen exchange pitfalls: Why might bank tellers make you spend an extra 2000 yen?

December 10, 2025, the NT dollar against the Japanese Yen broke through 4.85, and more people started exchanging yen. But have you ever thought that exchanging 50,000 NT dollars through different channels can actually save you 1,500-2,000 yuan?

Many people are used to going directly to the bank to exchange, but little do they know this is the most expensive of the four methods. We break down the latest real exchange rates and handling fees to help you find the truly cost-effective way.

Why is exchanging yen now so popular?

It’s not just because of traveling abroad. The yen, as one of the world’s three major safe-haven currencies (USD, Swiss Franc, Yen), often rises against the trend during global stock market turbulence. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in one week, while the stock market fell 10%.

For Taiwanese investors, this adds an extra layer of protection to the Taiwan stock market. Plus, the recent hawkish rate hike expectations from the Bank of Japan—expected to raise rates to 0.75% at the December 19 meeting (a 30-year high)—have pushed Japanese government bond yields to a 17-year high of 1.93%. The USD/JPY has fallen from 160 at the start of the year to 154.58 now, and medium to long-term forecasts suggest it will go below 150, leaving room for yen appreciation.

Moreover, at the beginning of the year, the NT dollar to yen was only 4.46, and in just over half a year, it appreciated to 4.85, a total increase of 8.7%. Exchanging yen is not just about consumption needs but also about asset allocation considerations.

Four ways to exchange currency, with big cost differences

Deepest pit: Cash exchange at counters (cost: 1500-2000 yuan)

Taking NT dollars directly to banks or airports to buy yen cash sounds straightforward but is actually the most costly. Why? Because banks use the “cash selling rate,” which is about 1-2% worse than the international market price.

For example, Taiwan Bank as of December 10, 2025, offers a cash selling rate of about 0.2060 (i.e., 1 NT dollar = 4.85 yen), while the international spot rate is 0.2070. This seemingly small difference results in a loss of over 1,500 yuan when exchanging 50,000 NT dollars.

Some banks also charge handling fees (e.g., E.SUN, E.SUN Bank, each 100 yuan; Cathay United Bank, 200 yuan), doubling the cost.

The only advantage: safety, full denominations, assistance from staff, suitable for those unfamiliar with online operations or urgent airport needs.

Moderate cost: Online exchange then cash pickup (cost: 500-1000 yuan)

Use bank apps or online banking to convert NT dollars to yen at the “spot selling rate” (about 1% discount), then deposit into a foreign currency account. When cash is needed, go to counters or ATMs to withdraw, which incurs additional exchange fees.

The benefit of this method is you can stagger your entries—exchange more when the rate is low (NTD/JPY below 4.80), less when high, averaging your costs. But you need to have a foreign currency account first.

Many use this method for yen fixed deposits, which currently offer annual interest rates of 1.5-1.8%. If you have a foreign currency account, you can also earn interest.

Suitable for: Those with forex investment experience who want to hold yen long-term.

Low-cost option: Online currency exchange for airport pickup (cost: 300-800 yuan)

No need for a foreign currency account. Simply fill in the currency, amount, pickup branch, and date on the bank’s website, then transfer funds. Bring ID and transaction notification to pick up in person. Taiwan Bank and Mega International Bank offer this service.

Taiwan Bank’s “Easy Purchase” online exchange rate offers about 0.5% discount, and paying via Taiwan Pay costs only 10 yuan handling fee. The best part is Taoyuan Airport has 14 Taiwan Bank counters, two of which operate 24 hours, allowing you to specify an airport branch for pickup and take cash before departure.

Ideal for travelers planning trips abroad.

Most flexible: ATM withdrawal of foreign currency (cost: 800-1200 yuan)

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen cash 24/7. Cross-bank withdrawals cost only 5 yuan. E.SUN Bank’s foreign currency ATMs allow NT dollar account holders to withdraw up to 150,000 yen per day without exchange fees.

The advantage is anytime, anywhere, no restriction by bank hours. The downside is limited locations (about 200 nationwide), only supporting major currencies, and cash may run out during peak times (like airports).

Note: Japan ATM withdrawal services will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus). In Taiwan, foreign currency ATMs generally won’t run out of cash when withdrawing from NT dollar accounts, but avoid peak hours.

Best for: Urgent needs, busy professionals who don’t have time to visit banks.

Four methods summarized

Is it worth exchanging now?

Honestly, yes, but don’t exchange all at once.

The yen exchange rate is currently volatile. The US rate cut cycle has begun, and the Bank of Japan’s rate hike expectations are mounting—these forces are pulling in opposite directions. In the short term, expect fluctuations of 2-5%, but the medium-term trend is yen appreciation (USD/JPY forecast below 150).

The recommended approach is staggered entry:

• If your budget is 50,000, exchange 30,000 via online exchange and pick up at the airport
• Use the remaining 20,000 with ATM withdrawals gradually
• This reduces risk and captures potential appreciation

After exchanging yen, what to do?

Holding yen without action is a waste. Here are some options:

1. Yen fixed deposit (annual interest rate 1.5-1.8%)
The safest choice. E.SUN and Taiwan Bank offer foreign currency accounts starting from 10,000 yen.

2. Yen insurance policies (guaranteed interest 2-3%)
Cathay Life and Fubon Life have yen savings insurance, suitable for medium-term holding.

3. Yen ETFs (e.g., 00675U, 00703)
For growth, Yuanta 00675U tracks the yen index, can be bought in fractional shares, suitable for dollar-cost averaging. Management fee is 0.4% annually.

4. Forex swing trading
Interested traders can try USD/JPY or EUR/JPY, which are traded 24/7, with long and short options, requiring minimal capital.

While yen is a safe-haven tool, it also fluctuates bidirectionally. BOJ rate hikes are positive, but global arbitrage unwinding or geopolitical conflicts can depress the rate. For investment, yen ETFs are lower risk; swing trading requires technical analysis skills.

Quick FAQs

Q. What’s the difference between cash exchange rate and spot rate?
Cash rate is the rate banks offer for physical banknotes, usually 1-2% worse than the spot rate, but immediate. Spot rate is the foreign exchange market’s T+2 settlement rate, closer to international prices, but involves waiting for settlement.

Q. How much yen can I get with 10,000 NT dollars?
Using the formula: Yen = NT dollars × current rate (e.g., 4.85).
At cash selling rate (4.85): about 48,500 yen.
At spot rate (4.87): about 48,700 yen.
Difference is about 200 yen.

Q. What ID do I need for counter exchange?
ID card + passport (for locals) or passport + residence permit (for foreigners). If booked online, bring transaction notification. For amounts over 100,000 NT dollars, fill out a source of funds declaration. Minors under 20 need a parent present.

Q. What’s the limit for foreign currency ATM withdrawals?
After 2025, rules vary by bank:

• CTBC: up to 120,000 TWD per transaction and per day
• Taishin Bank: up to 150,000 TWD per transaction and per day
• E.SUN Bank: up to 50,000 yen per transaction (about 50 banknotes), 150,000 yen per day

It’s recommended to use your own bank card to avoid cross-bank fees and withdraw in multiple transactions during peak times.

Final reminder

Yen is no longer just pocket money for travel; it has hedging and investment value. By following the principles of “staggered exchange + don’t leave it idle,” and choosing the right channels, you can minimize costs.

For beginners, start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then move into fixed deposits or ETFs based on your needs. This way, you can enjoy cost-effective travel and add a layer of protection during global turbulence.