The true cost of exchanging Japanese Yen: a NT$50,000 difference actually amounts to thousands of dollars. How to choose the most cost-effective exchange rate at Taoyuan Airport

December 10, 2025, the Taiwan dollar to Japanese yen exchange rate reports 4.85, up 8.7% from 4.46 at the beginning of the year. Many people think just going to the bank is enough to exchange yen, but they don’t realize that the exchange rate difference alone can cost you several thousand NT dollars more. We tested four currency exchange channels using real market prices to show you. For the same 50,000 NT dollars, the cheapest and most expensive options differ by over 1,500 NT dollars.

Is it worth exchanging yen now? It depends on your trading purpose

The yen is no longer just for travel pocket money; it’s also a hedge asset. As one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), the yen tends to appreciate during market turbulence. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in one week, just offsetting a 10% decline in the stock market. For Taiwanese investors, exchanging for yen adds an extra layer of hedging against the Taiwan stock market.

Plus, the Bank of Japan Governor Ueda Kazuo recently signaled a hawkish stance, with market expectations of a 0.25 bps rate hike to 0.75% on December 19 (a 30-year high), and Japanese government bond yields reaching a 17-year high of 1.93%. Compared to the US entering a rate cut cycle, the yen’s support is clear. USD/JPY has fallen from the high of 160 at the start of the year to 154.58, with potential for further decline in the medium to long term.

In the second half of the year, Taiwan’s currency exchange demand grew by 25%, mainly driven by travel recovery and hedging needs. Is it cost-effective to exchange for yen? Yes, but don’t exchange all at once. It’s better to buy in batches, especially when the NT dollar to yen rate drops below 4.80, to average your costs.

Real-world comparison of 4 currency exchange channels

Method 1: Bank counter cash exchange — most expensive but safest

This traditional method involves exchanging NT cash directly for yen banknotes. The problem is banks use the “cash selling rate,” which is about 1-2% worse than the spot rate, plus possible handling fees, making it the most costly option overall.

For example, Taiwan Bank’s cash selling rate is about 0.2060 NT$ per 1 yen (meaning 1 NT$ = 4.85 yen). E.SUN Bank charges an additional 100 NT$ per transaction, and Fubon Bank even 200 NT$. Exchanging 50,000 NT$ this way results in a loss of 1,500–2,000 NT$.

Use this only for urgent airport needs or when unfamiliar with online procedures.

Method 2: Online currency exchange, counter or ATM withdrawal — moderate cost, high flexibility

First, use bank app or online banking to convert NT dollars into yen and deposit into a foreign currency account, using the “spot sell rate” (about 1% discount). Then, withdraw cash at the counter or via foreign currency ATM. This reduces the loss to about 500–1,000 NT$ for 50,000 NT$.

Advantages include batch operations and 24-hour access, suitable for investors wanting to average costs. Disadvantages are the need to open a foreign currency account first, and additional cross-bank withdrawal fees (about 5–100 NT$).

Ideal for those experienced with forex, with foreign currency accounts, or considering direct yen deposits into fixed deposits (annual interest 1.5–1.8%) or yen ETFs (like Yuanta 00675U tracking the yen index).

Method 3: Online currency settlement, Taoyuan Airport pickup — lowest cost, most efficient

No need to open a foreign currency account first. Simply fill in currency, amount, pickup branch, and date on the bank’s website, then bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” online settlement is fee-free (pay with Taiwan Pay for only 10 NT$), with about 0.5% favorable exchange rate, resulting in only 300–800 NT$ loss on 50,000 NT$.

Taoyuan Airport has 14 Taiwan Bank branches, 2 of which operate 24 hours, making it the best pre-departure booking method. You can also reserve cash at branches to ensure pickup. Mega Bank offers similar services.

Disadvantages include needing to book 1–3 days in advance, and pickup times are limited by bank hours. Best suited for planned travelers who want to pick up cash directly at Taoyuan Airport.

Method 4: Foreign currency ATM — fastest but most limited

Use chip-enabled debit/credit cards at foreign currency ATMs to withdraw yen cash instantly, available 24/7. E.SUN Bank’s foreign currency ATMs allow withdrawal from NT accounts, with a daily limit of 150,000 NT$, no exchange fee, and only 5 NT$ cross-bank fee.

The issue is only about 200 ATMs nationwide, with fixed denominations (1,000/5,000/10,000 yen), and cash may run out during peak times (especially at airports). Losses are about 800–1,200 NT$.

Suitable only for emergency needs or last-minute cash. It’s recommended not to wait until the last moment to withdraw.

Summary table of exchange methods

After exchanging yen, don’t let your money sit idle

Once exchanged, don’t just leave it there. While the yen is a strong hedge, it also needs to be managed for growth.

Yen fixed deposit: a stable choice, starting from 10,000 yen at E.SUN/Taiwan Bank, with annual interest rates of 1.5–1.8%.

Yen insurance policies: Cathay/Fubon life savings insurance, with guaranteed interest rates of 2–3%, suitable for medium-term holding.

Yen ETFs: Yuanta 00675U tracking the yen index, can be bought as fractional shares via broker apps, and dollar-cost averaging reduces risk. Management fee is 0.4%, suitable for growth-oriented investors.

Forex swing trading: Trade USD/JPY or EUR/JPY, with long and short positions, 24-hour trading, capturing exchange rate fluctuations. Benefits include small capital requirements and tools for stop-loss and take-profit.

The BOJ rate hikes are positive for the yen, but global arbitrage unwinding or geopolitical conflicts could change the trend. Diversify your holdings; don’t go all-in on a single option.

Quick FAQs

Q: How much is the difference between cash rate and spot rate?
Cash rate is the bank’s buy/sell rate for physical cash, with a spread of about 1–2%. Spot rate is the FX market’s T+2 settlement rate, closer to international market prices, but requires waiting for settlement.

Q: How many yen can I get for 10,000 NT$?
Using Taiwan Bank’s cash selling rate of 4.85, about 48,500 yen. With the spot rate of 4.87, about 48,700 yen. The difference is roughly 200 yen (about 40 NT$).

Q: What do I need to bring for counter exchange?
Taiwanese citizens: ID card + passport; foreigners: passport + residence permit. For online booking, also bring transaction notice. Under 20 years old needs parental accompaniment; amounts over 100,000 NT$ may require source of funds declaration.

Q: What is the daily withdrawal limit at foreign currency ATMs?
Starting October 2025, banks have adjusted limits: CTBC about 120,000 NT$/day, Taishin 150,000 NT$/day, E.SUN 150,000 NT$/day (including debit). It’s recommended to use your own bank card to avoid cross-bank fees and plan ahead during peak times.

Conclusion

The yen has become an asset with both hedging and investment value, no longer just for travel. Follow the two main principles of “batch exchange + diversified allocation” to minimize costs and maximize returns. Beginners should start with “Taiwan Bank online settlement + Taoyuan Airport pickup” or “foreign currency ATM,” then gradually move into fixed deposits, ETFs, or swing trading based on needs. This way, you can enjoy more cost-effective travel and add a layer of protection during global market turbulence.