Four major tips for Japanese Yen exchange: exchange rate, fees, ATM withdrawals—full analysis

The exchange rate of NT$ to JPY has reached 4.85 today, as the travel boom to Japan and risk aversion demand both heat up. But do you really know how to exchange money in the most cost-effective way? Many think just going to the bank is enough, but they don’t realize that different channels’ exchange spreads could cost you an extra cup of bubble tea.

Is it worthwhile to exchange JPY now? Market signals tell you

Compared to 4.46 at the beginning of the year, the yen has appreciated by 8.7%. By the end of 2025, Taiwan’s foreign exchange demand is expected to surge by 25%, mainly driven by travel recovery and capital hedging. The Bank of Japan Governor Ueda Kazuo has signaled a hawkish stance, with market expectations of a 0.25bps rate hike to 0.75% on December 19 (a 30-year high), and Japanese government bond yields have surged to a 17-year high of 1.93%.

USD/JPY has fallen from a high of 160 at the start of the year to 154.58. In the short term, it may test 155 again, but in the medium to long term, as one of the world’s three major safe-haven currencies (along with USD and Swiss Franc), the yen is expected to remain strong amid rising global economic uncertainties. Gradual exchange is the right approach—exchanging all at once exposes you to volatility risk.

Four practical methods to exchange JPY

Method 1: Bank counter cash exchange (traditional but costly)

Bring cash directly to a bank or airport counter to get JPY notes on the spot. For example, Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 TWD/JPY (i.e., 4.85 JPY/TWD), but this is a less favorable rate. Mega Bank 0.2062, CTBC 0.2065, First Bank 0.2062, and some banks charge an additional handling fee of NT$100-200.

Using NT$50,000 as an example, you lose NT$1,500-2,000. Advantages include safety, full denominations, and assistance from staff; disadvantages are the spread and limited operating hours. Suitable only for small, urgent, or airport needs.

Method 2: Online exchange, withdrawal via counter or ATM

Use bank app or online banking to convert NT$ to JPY at the spot selling rate (about 0.2055, slightly better than cash rate), deposit into a foreign currency account, then withdraw cash when needed. E.SUN Bank charges a spread-based fee, starting at NT$100.

This method allows you to observe exchange rate trends and buy in batches at low points (e.g., when NT$ to JPY drops below 4.80). Cost for NT$50,000 is about NT$500-1,000. Suitable for those with forex investment experience planning to hold JPY deposits long-term (annual interest rate 1.5-1.8%).

Method 3: Online currency purchase with airport pickup (most convenient)

No need to open a foreign currency account. Simply fill in currency, amount, pickup branch, and date on the bank’s website. After completing, bring ID and transaction notification to pick up at the counter. Taiwan Bank’s “Easy Purchase” online currency exchange is fee-free (pay NT$10 via TaiwanPay), with about 0.5% better rates.

Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours), ideal for pre-trip planning. Cost for NT$50,000 is about NT$300-800. Disadvantages include needing to book 1-3 days in advance, pickup only during bank hours, and branch changes are not allowed.

Method 4: Foreign currency ATM cash withdrawal (most flexible)

Use a chip-enabled debit card at foreign currency ATMs to withdraw JPY cash, operational 24/7. E.SUN Bank allows daily withdrawal limits of NT$150,000 from NT$ accounts, with no exchange fee, and NT$5 cross-bank fee. Denominations are limited to 1,000/5,000/10,000 JPY, but there are about 200 ATMs nationwide.

ATM withdrawal of JPY’s biggest advantage is anytime access without bank hours constraints. Cost for NT$50,000 is about NT$800-1,200. Be aware that during peak times (like airports), cash may run out quickly. Planning ahead is recommended—don’t wait until the last minute. The convenience of ATM withdrawal provides a lifesaver for urgent needs when visiting banks isn’t feasible.

Cost and suitable scenarios for exchanging NT$50,000 to JPY

After exchanging for JPY: Four ways to make your money work

Once you have JPY, let it sit without interest. Based on your risk preference, here are four allocation ideas:

Conservative — JPY fixed deposit: E.SUN/Bank of Taiwan foreign currency accounts, starting from 10,000 JPY, with annual interest rates of 1.5-1.8%, suitable for stable investors.

Mid-term — JPY insurance policy: Cathay/Fubon savings insurance, with guaranteed interest rates of 2-3%, combining protection and returns.

Growth — JPY ETFs: Such as Yuanta 00675U tracking the JPY index, available as fractional shares via broker, with 0.4% annual management fee, suitable for dollar-cost averaging.

Swing trading — Forex trading: Trade USD/JPY, EUR/JPY on forex platforms to catch exchange rate fluctuations, with both long and short positions, 24-hour trading, but risk control is essential.

Quick FAQs

Q: What’s the difference between cash rate and spot rate?
Cash rate is the rate banks use for buying and selling banknotes, paid on the spot but at a higher cost (1-2% above spot rate). Spot rate is the market’s T+2 settlement rate, closer to international market prices, but requires waiting for settlement.

Q: How much JPY can I get with NT$10,000?
Using Taiwan Bank’s cash selling rate of 4.85, NT$10,000 can buy about 48,500 JPY; at the spot rate of 4.87, about 48,700 JPY—only NT$200 difference (roughly NT$40).

Q: What ID do I need for counter exchange?
Locals: ID card + passport; foreigners: passport + residence permit; if booked online in advance, also bring transaction notification. Large amounts (over NT$100,000) may require source of funds declaration.

Q: What’s the daily withdrawal limit at foreign currency ATMs?
As of October 2025, limits vary by bank. CTBC equivalent of NT$120,000/day; Taishin NT$150,000/day; E.SUN NT$150,000/day (including debit card). It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Summary: Batch exchange, avoid sitting idle

The JPY is no longer just for travel pocket money but also an asset with hedging and investment value. Whether traveling or asset allocation, the key is gradually exchanging to reduce costs and immediately investing after exchange to generate returns. Beginners can start with “online currency purchase + airport pickup” or “ATM withdrawal of JPY,” then incorporate fixed deposits, ETFs, or swing trading based on needs. This way, travel becomes more cost-effective, and you gain an extra layer of protection amid global market fluctuations.