NTD to JPY exchange cost analysis | Which of the 4 methods is the most cost-effective?

Why is now the time to consider exchanging for Japanese Yen?

In early December 2025, the TWD/JPY exchange rate surpassed 4.85, appreciating approximately 8.7% since the beginning of the year. This trend has not only attracted tourists but also caught the attention of investors. The reason is simple—JPY is one of the world’s three major safe-haven currencies. Under the pressure of TWD depreciation, holding JPY can meet both international travel expenses and asset protection needs.

However, currency exchange may seem straightforward, but the costs associated with different methods can vary by as much as 1,000-2,000 NT dollars. For example, exchanging 50,000 NT dollars through the wrong channel could be like paying for two extra cups of bubble tea.

Overview of 4 ways to exchange for JPY in Taiwan

Method 1: Traditional in-person currency exchange—convenient but most expensive

Carrying cash NT dollars to a bank or airport counter to exchange for JPY banknotes is the most traditional approach. Banks use the “cash selling rate” (about 1-2% worse than the spot rate), and some banks also charge fixed handling fees, resulting in higher overall costs.

For example, Taiwan Bank’s cash selling rate is approximately 0.2060 NT$/JPY (about 4.85 JPY per NT$). With a possible handling fee of 100-200 NT$, exchanging 50,000 NT$ could result in a loss of about 1,500-2,000 NT$.

Suitable for: travelers unfamiliar with online operations or needing small, urgent exchanges (e.g., at the airport).

Method 2: Online exchange combined with in-person withdrawal—balanced approach

Use online banking or mobile apps to perform currency exchange, enjoying the “spot sell rate” (about 1% better than cash rate). If you need cash JPY, you can withdraw at bank counters or foreign currency ATMs, but there will be online exchange handling fees (starting from about 100-200 NT$).

For example, E.SUN Bank’s online exchange, when withdrawing cash, involves paying the difference between spot and cash rates, with a minimum of 100 NT$. This method is suitable for monitoring exchange rates and entering the market in batches when the TWD/JPY rate dips below 4.80.

Advantages: 24/7 operation, ability to buy in batches for average cost, transparent online exchange fees
Disadvantages: need to open a foreign currency account first, withdrawal incurs additional online exchange fees (cross-bank 5-100 NT$)
Estimated cost (50,000 NT$): loss of 500-1,000 NT$
Suitable for: experienced forex traders, long-term JPY holders, those considering JPY fixed deposits

Method 3: Online currency settlement with airport pickup—best pre-departure plan

No need to open a foreign currency account. Simply fill in the exchange amount, select pickup branch and date on the bank’s website. After transferring funds, bring your ID and transaction notification to the counter for pickup. Taiwan Bank and Mega International Bank offer this service, with appointment options at airports, ideal for pre-trip planning.

Taiwan Bank’s “Easy Purchase” online currency settlement is fee-free (only 10 NT$ for TaiwanPay payments), with about 0.5% favorable exchange rate. Taoyuan Airport has 14 Taiwan Bank counters, including 2 open 24 hours.

Advantages: favorable rates, often no online exchange fee, designated airport pickup, convenient planning
Disadvantages: need to book in advance (at least 1-3 days), pickup time limited to bank hours, branch selection cannot be changed
Estimated cost (50,000 NT$): loss of 300-800 NT$
Suitable for: planners, travelers wanting to withdraw directly at the airport, those needing to organize their trip

Method 4: Foreign currency ATM withdrawal—emergency quick fix

Use a chip-enabled financial card to withdraw cash JPY at foreign currency ATMs, supporting 24-hour operation and cross-bank withdrawals. Deducts only 5 NT$ cross-bank fee from your NT$ account, with no additional exchange fee. Fubon Bank’s foreign currency ATMs have a daily limit equivalent to 150,000 NT$.

Disadvantages: limited locations (~200 nationwide), fixed denominations (1,000/5,000/10,000 JPY), cash may run out during peak times.

Advantages: instant withdrawal, high flexibility, low online exchange fee (only 5 NT$ cross-bank fee), 24/7 access
Disadvantages: limited locations and denominations, potential cash shortages during busy hours, plan ahead to avoid missing out
Estimated cost (50,000 NT$): loss of 800-1,200 NT$
Suitable for: busy professionals with no time to visit branches, urgent cash needs

Summary table of the 4 exchange methods

Is exchanging for JPY now really worthwhile?

Short answer: Yes, but consider batching.

The TWD/JPY rate has risen from 4.46 at the start of the year to over 4.85, appreciating 8.7%. In the second half of the year, Taiwan’s forex demand increased by 25%, mainly driven by travel recovery and hedging needs. Market observations show that the US is entering a rate-cut cycle, supporting the Yen. Meanwhile, the Bank of Japan’s hawkish stance has strengthened, with Governor Ueda Kazuo recently raising the rate hike expectation to 80%, with a projected increase of 0.25 bps to 0.75% on December 19 (a 30-year high).

USD/JPY has fallen from a high of 160 at the start of the year to 154.58, with a short-term rebound possibly to 155, but medium to long-term forecasts suggest below 150.

Investment advice: As one of the three major safe-haven currencies, JPY is suitable for hedging against Taiwan stock market volatility. However, short-term arbitrage closing could cause 2-5% fluctuations. It’s recommended to buy in batches to avoid all-in exposure.

Strategies to increase value after exchanging for JPY

If you’ve already exchanged for JPY, don’t let your funds sit idle without earning interest. Consider these four conservative to growth-oriented options:

1. JPY fixed deposit
Open a foreign currency account and deposit JPY online. Minimum 10,000 JPY, annual interest rate 1.5-1.8%, suitable for conservative investors.

2. JPY insurance policy
Buy JPY savings insurance (Cathay/ Fubon Life), with guaranteed interest rates of 2-3%, suitable for medium-term holding.

3. JPY ETFs
Invest in JPY-related ETFs like Yuanta 00675U via brokerage apps, with fractional shares and dollar-cost averaging options, suitable for growth-oriented portfolios.

4. JPY forex swing trading
Trade USD/JPY or EUR/JPY directly on forex platforms, with long and short positions, 24-hour trading. Small capital can be used, but volatility risk is higher.

Quick FAQs

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

Cash rate is the rate banks offer for physical banknotes/coins, used for travel currency exchange. It allows immediate cash delivery but usually 1-2% worse than the spot rate, plus possible fees, making it more costly.

Spot rate is the foreign exchange market rate for T+2 settlement, used for electronic transfers and non-cash transactions. It’s more favorable and close to international market prices but requires waiting for settlement.

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

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

Using Taiwan Bank’s cash selling rate of 4.85, 10,000 NT$ ≈ 48,500 JPY; with spot selling rate of 4.87, ≈ 48,700 JPY, a difference of about 200 JPY (roughly NT$40).

Q: What documents are needed for foreign currency exchange?

For counter transactions, bring ID + passport (foreigners also need residence permit). If pre-booked online, also bring transaction notification. Minors under 20 need parental consent and ID; large exchanges over 100,000 NT$ may require source of funds declaration.

Q: What’s the limit for foreign currency ATM withdrawals?

From October 2025, banks have adjusted limits. CTBC Bank: equivalent to NT$120,000/day; Taishin Bank: NT$150,000/day; E.SUN Bank: NT$150,000/day (including card transactions). It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Conclusion

The JPY has evolved from a simple “travel pocket money” to an asset with hedging and investment value. Whether for Japan travel next year or capitalizing on TWD depreciation, following the “batch exchange + transparent online exchange fee + don’t leave funds idle” principles can minimize costs and maximize returns.

Beginners are advised to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then transfer JPY into fixed deposits, ETFs, or swing trading based on needs. This way, you can enjoy more cost-effective trips abroad and add a layer of protection during global market fluctuations.