Should I exchange Japanese Yen now in 2025? A complete breakdown of the 4 major practical channels to acquire it

NTD Depreciation Wave: The Yen Exchange Rate Reaches a Critical 4.85

The NT dollar against the yen has depreciated from 4.46 at the beginning of the year to today’s 4.85, a total decline of 8.7%. Many are starting to seriously consider: Is now the time to exchange NT dollars for yen? The answer is yes—but with some tips.

This article not only tells you whether to exchange or not, but also breaks down the four most practical channels to acquire yen in Taiwan, precisely calculating the costs and foreign currency withdrawal fees for each method, helping you save unnecessary expenses.

Why Yen Becomes the Top Choice for Currency Exchange in 2025?

The appeal of the yen goes far beyond travel purposes. From daily life to asset allocation, it offers three major advantages:

Travel and Consumption Needs

Nearly 40% of merchants on Japanese streets only accept cash. Whether it’s Tokyo department stores, Hokkaido ski resorts, or Okinawa duty-free shops, carrying yen cash remains the safest choice. Many purchasing agents and cross-border Japanese e-commerce transactions also require direct payment in yen.

One of the World’s Top Three Safe-Haven Assets

The yen is ranked alongside the US dollar and Swiss franc as a safe-haven currency. During the Russia-Ukraine war in 2022, the yen appreciated by 8% in a single week, perfectly hedging against global stock market crashes. For Taiwanese investors, converting into yen is equivalent to adding an “insurance” against Taiwan stock market volatility.

Japanese Central Bank Rate Hike Outlook

Japan’s long-term ultra-low interest rate era is coming to an end. Recent hawkish comments from the Bank of Japan governor have market expectations of rate hikes reaching 80%, with a projected increase to 0.75% at the December meeting (a 30-year high). In a rising interest environment, yen fixed deposits can yield annual rates of 1.5-1.8%, far better than Taiwan’s savings account interest rates.

Practical Comparison: Cost Differences of 4 Major Yen Exchange Channels

Exchanging yen isn’t just a matter of visiting a bank. The combined effects of exchange rates, service fees, and foreign currency withdrawal fees can significantly impact the final amount of NT dollars exchanged. Using 50,000 NT dollars as an example, let’s analyze each method.

Option 1: Traditional Counter Exchange — Most Expensive but Most Secure

Bring cash NT dollars directly to a bank or airport counter to exchange for yen. Simple, safe, and reliable, but the cost is the “cash selling rate,” which is 1-2% worse than the spot rate.

Cost Breakdown

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT$/yen (meaning 1 NT$ = 4.85 yen). 50,000 NT$ will convert to approximately 242,500 yen. Other banks like E.SUN and Cathay United Bank have cash selling rates as high as 0.2067-0.2069, resulting in about 100-200 yen less.

Adding some banks’ per-transaction handling fee of 100-200 NT$, the total loss on 50,000 NT$ ranges from 1,500 to 2,000 NT$.

Suitable for

First-time exchangers, unfamiliar with online procedures, or travelers with urgent needs (e.g., deciding at the airport).

Option 2: Online Currency Exchange + ATM or Counter Withdrawal — Moderate Cost

Use bank app or online banking to transfer NT$ into a foreign currency account in yen, enjoying the “spot selling rate” advantage (about 1% better than cash selling rate). Then decide whether to withdraw cash at a counter or ATM.

Withdrawal incurs a “foreign currency withdrawal fee,” typically ranging from NT$100, based on the difference between spot and cash rates.

Cost Breakdown

Using an online exchange rate of about 4.87, 50,000 NT$ converts to roughly 242,700 yen in the account. If you don’t withdraw cash, no fee applies, suitable for purely investment purposes. If cash is needed, cross-bank ATM withdrawals may add NT$5-100 per transaction, resulting in a total loss of NT$500-1,000.

Suitable for

Those with foreign currency accounts, willing to observe rate fluctuations and buy yen in batches, or considering future yen fixed deposits or ETFs.

Option 3: Online Currency Conversion + Airport Pickup — Best Cost-Performance

No need for a foreign currency account. Fill in amount, currency, and airport branch on the bank’s website, complete the transfer, then bring ID and transaction notice 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% exchange rate advantage.

The biggest advantage nationwide is Taoyuan Airport, which has 14 Taiwan Bank branches, including 2 open 24 hours, suitable for last-minute or early morning pickups before travel.

Cost Breakdown

Exchanging 50,000 NT$ online at about 4.87 yields 242,700 yen, with no additional withdrawal fee. Total loss is controlled within NT$300-800, the lowest among all four options.

Suitable for

Planners who schedule 3-7 days ahead, want to pick up cash at the airport, and are sensitive to exchange rates.

Option 4: Foreign Currency ATM 24/7 Self-Service Withdrawal — Most Flexible but Limited Locations

Use a chip-enabled financial card at foreign currency ATMs to withdraw yen cash 24/7, no need to wait for business hours. Cross-bank withdrawals cost only NT$5.

However, there are only about 200 foreign currency ATMs nationwide, with fixed denominations of 1,000/5,000/10,000 yen. During peak times (airports, shopping centers), cash may run out.

Cost Breakdown

Using a service like E.SUN Bank’s foreign currency ATM, directly debiting from NT$ account, no exchange fee is charged, but the implied exchange rate is embedded. An estimated loss of NT$800-1,200 on 50,000 NT$, similar to counter exchange but with higher flexibility.

Suitable for

People who lack time to visit banks, need emergency cash, or prefer 24-hour self-service.

Summary of the 4 Methods’ Costs

Is Now a Good Time to Exchange Yen?

Exchange Rate Position Analysis

From 4.46 at the start of the year to today’s 4.85, the NT dollar has depreciated by 8.7%. Relative to this, the yen still has room to appreciate further. Based on the BOJ’s rate hike expectations and global arbitrage outlook, USD/JPY may fluctuate between 150-155 in the short term, but the medium to long-term target is below 150, indicating potential yen appreciation.

Risk Warning

The yen’s volatility is significant. If tensions in the Taiwan Strait escalate or conflicts in the Middle East expand, arbitrage positions may close, pushing the yen lower and causing a short-term decline of 2-5%. Therefore, the best strategy is to divide your exchange into batches, rather than converting all at once.

Recommended Pace

• Travel needs: online currency exchange 2-3 weeks in advance to avoid last-minute price hikes
• Investment allocation: buy in 3-4 batches, spaced 1-2 weeks apart, to diversify exchange rate risk
• Large amounts (over NT$500,000): consider bank foreign exchange services for better rates

Post-Exchange Yen Value-Adding Strategies

Holding yen passively is a waste. In a low-interest environment, yen now offers multiple ways to grow:

Yen Fixed Deposits: Most stable Open a foreign currency account with E.SUN or Taiwan Bank, deposit yen online, with minimum 10,000 yen, annual interest of 1.5-1.8%. A 3-month term yields 1.2%, roughly NT$600 profit at 4.85 rate.

Yen Insurance Policies: Medium-term gains Cathay and Fubon life offer yen savings insurance with guaranteed interest rates of 2-3%, for 3-6 years. Suitable for risk-averse investors.

Yen ETFs: Growth-oriented Yuanta 00675U tracks the yen index, with a management fee of 0.4%, available for fractional shares via broker apps. Regular investment in yen ETFs allows participation in yen appreciation and Japanese stock market rebound.

Forex Swing Trading: Professional level Trade USD/JPY or EUR/JPY directly on platforms like Mitrade, capturing exchange rate fluctuations. Benefits include zero commission, low spreads, long and short positions, and 24-hour trading. Higher risk, suitable for experienced forex investors.

Quick FAQs

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

Cash rate is used for physical cash transactions; banks face costs and risks with cash, so the rate is 1-2% worse. Spot rate is used for electronic transfers, close to international market, but settled T+2. Simply put: cash exchange is more expensive, electronic transfer is cheaper.

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

Calculate as 【Yen = NT$ × exchange rate】. At Taiwan Bank’s cash selling rate of 4.85, NT$10,000 ≈ 48,500 yen. Using the spot rate of 4.87, about 48,700 yen, a difference of 200 yen (~NT$40).

Q: What ID do I need for counter exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. Online reservation holders should bring transaction notice. Under 20 requires parental consent; amounts over NT$100,000 need source of funds declaration.

Q: What is the daily withdrawal limit at foreign currency ATMs?

Post-2025 regulations, most banks set daily limits at NT$100,000-150,000 equivalent. It’s recommended to withdraw in multiple days or use your own bank card to avoid cross-bank fees. During peak times (airports, malls), cash may run out, so plan ahead.

Final Advice

Yen has become a versatile asset for travel, asset allocation, and arbitrage. By following the principles of “batch exchange” and “immediate allocation after exchange,” you can minimize withdrawal fees and maximize returns.

Beginner route: Taiwan Bank online exchange → airport pickup → transfer to fixed deposit
Advanced route: Batch online exchange → partial fixed deposits + ETFs → monitor yen appreciation
Professional route: Emergency foreign currency ATM withdrawal + yen ETF investment + swing forex trading

Whichever path you choose, remember one principle: Compare withdrawal foreign currency fees and choose the lowest-cost option—not just to save a little, but to maximize your capital’s protection amid global turbulence.