Is exchanging Japanese Yen worth it? Revealing the costs of 4 major channels

December 10, 2025, the NT dollar to Japanese Yen is about 4.85, and 10,000 NT dollars can be exchanged for approximately 48,500 Yen. Compared to 4.46 at the beginning of the year, the Yen has appreciated by about 8.7%, making the investment returns quite substantial. However, the costs of currency exchange vary greatly; choosing the right method can save you a lot of money.

Many people only think about “exchanging at the bank,” unaware that the fees across different channels can differ by as much as 1,000-2,000 NT dollars. We will show you the real market prices so you can understand which method is the most cost-effective.

4 Major Currency Exchange Channels Cost Testing

First Place: Online Exchange + Airport Pickup - Most Cost-Effective

No need for a foreign currency account. Simply fill in the currency, amount, pickup branch, and date on the bank’s official website. After completing the transfer, bring your ID and transaction notification to pick up in person.

Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay with TaiwanPay for only 10 NT dollars), with an exchange rate advantage of about 0.5%. This is the most practical reservation method before traveling, especially since Taoyuan Airport has 14 Taiwan Bank branches, including 2 open 24 hours.

Estimated loss for exchanging 50,000 NT dollars is only 300-800 NT dollars, making it the most cost-effective choice currently.

Advantages: Better exchange rates, often no handling fees, can specify airport pickup
Disadvantages: Requires prior reservation (at least 1-3 days), pickup limited to bank operating hours, branch cannot be changed
Suitable for: Planned travelers or those wanting stable Yen investments

Second Place: Foreign Currency ATM 24-Hour Cash Withdrawal

Use a chip-enabled financial card to withdraw Yen cash at foreign currency ATMs outside banks, open 24 hours. Cross-bank withdrawal fee is only 5 NT dollars. E.SUN Bank’s foreign currency ATM allows withdrawal from NT dollar accounts with a daily limit of 150,000 NT dollars and no currency exchange fee.

Approximately 200 ATMs nationwide. Although less convenient than in-branch, they support multiple currencies (mainstream like Yen, USD, EUR). Note that Japan ATM withdrawal services will be adjusted by the end of 2025, requiring an international card (Mastercard/Cirrus).

Estimated loss for exchanging 50,000 NT dollars is 800-1,200 NT dollars. Cash may run out during peak times, so plan ahead.

Advantages: Instant withdrawal, high flexibility, low cross-bank fees
Disadvantages: Limited locations and denominations (fixed at 1,000/5,000/10,000 Yen), cash may be sold out during peak times
Suitable for: People with no time to visit banks or for urgent, temporary needs

Third Place: Online Exchange + In-Branch Pickup - Suitable for Long-Term Investment

Use online banking or app to convert NT dollars into Yen and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling rate). If cash is needed, you can pick it up in person or at foreign currency ATMs, but with a currency conversion spread fee (starting around 100 NT dollars).

This method is suitable for observing exchange rate trends and entering in batches at low points (e.g., when NT dollar to Yen is below 4.80). Estimated loss for 50,000 NT dollars is 500-1,000 NT dollars.

After currency exchange via E.SUN Bank app, the fee for withdrawing Yen cash is the difference between spot and cash rates, with a minimum of 100 NT dollars. Experienced forex traders can also invest in Yen fixed deposits, with current annual interest rates around 1.6%.

Advantages: 24-hour operation, averaging purchase costs, more favorable exchange rates
Disadvantages: Need to open a foreign currency account first, withdrawal incurs additional fees
Suitable for: Those experienced in forex, regularly using foreign currency accounts

Fourth Place: In-Branch Exchange - Most Expensive but Most Secure

Bring cash NT dollars directly to a bank branch or airport counter to exchange for Yen cash. Simple operation, but using the “cash selling rate” (about 1-2% worse than spot rate), overall cost is higher, with a loss of 1,500-2,000 NT dollars on 50,000 NT dollars.

Taiwan Bank’s cash selling rate is about 0.2060 NT dollars per Yen. Some banks also charge fixed handling fees.

Advantages: Safe and reliable, full denominations (1,000, 5,000, 10,000 Yen options), on-site assistance
Disadvantages: Worse exchange rates, limited to bank hours (weekday 9:00-15:30), possible additional handling fees
Suitable for: Those unfamiliar with online operations or needing small, urgent cash exchanges (e.g., at the airport)

(Source: Official bank websites, updated 2025/12/10)

Why Exchange Yen Now?

The Yen’s value surpasses just travel pocket money. First, travel expenses are essential—shopping in Tokyo, Osaka, skiing in Hokkaido, or vacationing in Okinawa mostly require cash (credit card usage is only about 60%). Second, Yen is one of the top three global safe-haven currencies (along with USD and Swiss Franc). When markets are turbulent, funds flow into Yen for safety.

During the Russia-Ukraine conflict in 2022, Yen appreciated 8% in a week, buffering a 10% stock market decline. For Taiwanese investors, exchanging Yen isn’t just for leisure but also for hedging Taiwan stock market volatility.

Additionally, Japan maintains ultra-low interest rates (around 0.5%), making Yen a “financing currency.” Many investors borrow Yen at low interest, convert to higher-yield USD investments (USD-JPY interest rate differential of 4.0%), and when risk rises, close positions to buy back Yen.

Is it really cost-effective now? Should you operate in batches?

Currently, Yen is experiencing significant fluctuations. According to the latest data, the US is entering a rate-cut cycle, supporting the Yen. Meanwhile, the Bank of Japan is on the verge of raising interest rates: Ueda Kazuo recently made hawkish comments, pushing market expectations to 80%, with a rate hike of 0.25 bps to 0.75% at the December 19 meeting (a 30-year high), with Japanese government bond yields reaching a 17-year high of 1.93%.

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

The answer is: it’s cost-effective, but operate in batches. Avoid exchanging all at once; instead, enter gradually to average costs. Yen as a safe-haven asset is suitable for hedging Taiwan stock market fluctuations, but short-term risks include profit-taking and market swings of 2-5%.

What to do after exchanging Yen? Don’t let your money sit idle

After exchanging Yen, don’t let your money sit without earning interest. Consider stable income or growth investments. Here are four common options suitable for beginners:

1. Yen Fixed Deposit: Conservative choice. E.SUN or Taiwan Bank open foreign currency accounts for online deposits. Minimum 10,000 Yen, annual interest rate 1.5-1.8%.

2. Yen Insurance Policy: Medium-term holding. Cathay or Fubon Life offer savings insurance with guaranteed rates of 2-3%.

3. Yen ETFs (00675U, 00703): Growth-oriented. Yuanta 00675U tracks Yen index, can buy fractional shares via broker apps, suitable for dollar-cost averaging. Management fee 0.4% annually.

4. Forex Trading: Direct trading of Yen currency pairs, such as USD/JPY or EUR/JPY, on forex platforms. Advantages include two-way trading, 24-hour market, small capital required. Ideal for intraday or swing strategies to capture exchange rate movements.

Common Questions About Currency Exchange

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

Cash exchange rate is the rate banks offer for physical cash buy/sell. It’s convenient for immediate cash delivery but about 1-2% worse than the spot rate. The spot rate is the market rate for settlement within two business days, used for electronic transfers and non-cash transactions, and is closer to international market prices.

Q. What do I need to bring to exchange foreign currency?

For in-branch cash exchange, locals need ID + passport; foreigners need passport + residence permit. If exchanging on behalf of a company, bring business registration documents. For online reservations, bring transaction notification. Minors under 20 need parental consent and ID; large exchanges over 100,000 NT dollars may require source of funds declaration.

Q. What are the foreign currency ATM withdrawal limits in Taiwan?

Limits vary by bank. CTBC’s equivalent of NT$120,000/day, Taishin Bank’s NT$150,000/day, E.SUN Bank’s NT$150,000/day (including debit). After 2025, limits may drop to NT$100,000-150,000 per day. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Final Reminder

Yen is no longer just travel pocket money but an asset with hedging and small investment value. Whether preparing for a trip to Japan or hedging against NT dollar depreciation by converting some funds into Yen, following the two principles of “batch exchange + don’t let the money sit idle” can minimize costs and maximize returns.

For beginners, start with the simplest options like “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM.” Then, consider moving Yen into fixed deposits, ETFs, or even experimenting with forex trading. This way, you can enjoy more cost-effective travel and add a layer of protection during global market turbulence.