Japanese Yen Investment Beginners Must Read: 2025 NT Dollar to Yen Trend and Currency Exchange Practical Guide

December 10, 2025, the TWD to JPY exchange rate surpasses 4.85, up 8.7% from 4.46 at the beginning of the year. For many people, this is a good time to exchange for Japanese yen—whether for traveling abroad or for asset allocation while the TWD depreciates. But the question is, what is the best way to exchange to minimize costs?

Why is it worth exchanging for Japanese yen?

In Taiwan’s foreign currency market, the yen has always been favored. This is not only because of the popularity of travel to Japan but also because of the investment value of the yen itself.

As one of the world’s three major safe-haven currencies (along with USD and Swiss Franc), the yen tends to appreciate countercyclically during global market turbulence. During the Russia-Ukraine conflict in 2022, the yen rose 8% in a single week, helping hedge investors recover from a 10% drop in the stock market. For Taiwanese investors, holding yen is not just for leisure but also for hedging Taiwan stock market volatility.

From an interest rate perspective, Japan has maintained an ultra-low interest rate policy (only 0.5%) for a long time, making the yen a “funding currency”—many international investors borrow low-interest yen to convert into high-yield USD investments, earning interest rate differentials (currently about 4.0% between USD and JPY). When risks increase, they unwind their positions by buying back yen, which can push the yen’s value higher.

On a daily life level, from shopping in Tokyo to skiing in Hokkaido, most stores still only accept cash (credit card penetration is only about 60%). Plus, purchasing Japanese cosmetics, clothing, and anime merchandise requires yen payments. Those planning to study abroad or work holiday need to exchange in advance to avoid last-minute exchange rate fluctuations increasing expenses.

Is it cost-effective to exchange for yen now? A batch strategy is key

The short answer is: Yes, but don’t exchange all at once.

According to the latest moves by the Bank of Japan (BOJ), the market expects a 0.25 basis point rate hike at the December 19 meeting to 0.75% (a 30-year high), with Japanese government bond yields reaching 17-year highs of 1.93%. This provides clear support for the yen. The USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now, and may oscillate back to 155 in the short term, but the medium to long-term forecast is below 150.

This means the yen still has considerable volatility. For currency exchange for investment purposes, it’s recommended to enter gradually to average costs rather than betting on a full, one-time investment. Recent data shows Taiwan’s foreign exchange demand increased by 25% in the second half of the year, mainly driven by travel recovery and hedging needs, indicating many are already deploying in batches.

4 practical ways to exchange currency

Taiwan offers many channels for exchanging yen, but costs vary greatly. For example, exchanging NT$50,000 might differ by NT$1,700 between the cheapest and most expensive options—enough to buy several meals in Japan.

Online exchange + airport pickup: the most cost-effective combo

If you plan ahead, this is the smartest way. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay with Taiwan Pay for just NT$10), with about 0.5% better exchange rate, and you can reserve pickup at Taoyuan Airport (which has 14 Taiwan Bank counters, 2 of which operate 24 hours).

Estimated cost: Loss of NT$300-800
Suitable for: Travelers with a clear plan, deciding their amount 2-3 days before departure

No foreign currency account needed. Just fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notification to pick up in person. Mega International Bank also offers similar service.

Foreign currency ATM cash withdrawal: the most flexible option

Use a chip-enabled debit card at foreign currency ATMs to withdraw yen cash, available 24/7 and across banks. Deduct NT$5 cross-bank fee from your TWD account (compared to USD remittance fees of NT$15-30, foreign currency ATMs are more economical for small withdrawals).

SinoPac Bank’s foreign currency ATMs allow withdrawal of yen from TWD accounts, with a daily limit of NT$150,000 and no exchange handling fee. About 200 locations nationwide, not as ubiquitous as convenience stores, but usually stocked with main currencies.

Estimated cost: Loss of NT$800-1,200
Suitable for: People who don’t have time to visit banks or need urgent cash

Note that foreign currency ATMs have fixed denominations (1,000, 5,000, 10,000 yen). During peak times (like airports or before long holidays), cash may run out. It’s best not to wait until the last minute.

Online exchange + in-branch pickup: preferred by investors

Use online banking or app to convert TWD 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 an ATM, incurring a currency conversion fee (about NT$100 or more).

This method suits those monitoring exchange rates, buying in batches when the TWD/JPY is low (e.g., below 4.80), and gradually allocating into fixed deposits or ETFs. After exchanging via E.SUN Bank’s app, the fee for cash pickup is the difference between spot and cash rates, with a minimum of NT$100.

Estimated cost: Loss of NT$500-1,000
Suitable for: Experienced forex users, those with foreign currency accounts, and interested in investing in yen deposits (current annual interest 1.5-1.8%)

Opening a foreign currency account is easy and usually free at most banks, suitable for medium-term holding of yen.

In-branch cash exchange: the least cost-effective but most secure

Bring cash directly to a bank branch or airport counter to exchange for yen cash. Although straightforward, it uses the “cash selling rate” (1-2% worse than spot rate), plus some banks charge handling fees, making it the most expensive option.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is about NT$0.2060 per yen (NT$1 = 4.85 yen). Some banks charge NT$100-200 per transaction.

Estimated cost: Loss of NT$1,500-2,000
Suitable for: Those unfamiliar with online procedures or needing small amounts for immediate use (e.g., at the airport)

Below are the cash selling rates of various banks on December 10, 2025 (for reference only, actual rates depend on bank websites):

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

Many people just exchange yen and stop there, but savvy investors will further allocate to generate returns.

Yen fixed deposits are the most stable. After opening an FX account with E.SUN or Taiwan Bank, deposit online with a minimum of 10,000 yen, earning 1.5-1.8% annually, suitable for holding 1-2 years.

Yen insurance policies combine insurance and investment. Cathay and Fubon offer savings insurance with guaranteed interest rates of 2-3%, suitable for medium-term allocation.

Yen ETFs (like Yuanta 00675U, 00703) track yen indices and can be bought in fractional shares via broker apps, suitable for those wanting to participate in yen appreciation without foreign exchange risk. Management fees are about 0.4% annually, relatively low.

Forex trading is an advanced approach, trading yen currency pairs (like USD/JPY or EUR/JPY) directly on forex platforms. Advantages include two-way trading, 24-hour market, and small capital requirements, suitable for swing strategies. However, it carries higher risks, so beginners should proceed cautiously.

Common forex exchange Q&A

Q: What’s the difference between cash rate and spot rate?
Cash rate is the buy/sell rate banks offer for physical cash (banknotes/coins), suitable for travel exchange or on-site transactions. It’s convenient for immediate cash but usually 1-2% worse than the spot rate. The spot rate is the market rate for settlement within two business days (T+2), used for electronic transfers and non-cash transactions, offering more favorable rates close to international market prices, but requires waiting for settlement.

Q: How much yen can I get with NT$10,000?
Using Taiwan Bank’s December 10, 2025, cash selling rate of 4.85, NT$10,000 can buy about 48,500 yen. Using the spot rate (~4.87), it’s about 48,700 yen, a difference of roughly 200 yen (about NT$40).

Q: Is there a limit on foreign currency ATM withdrawals?
Limits vary by bank due to new regulations. For example, CTBC allows NT$120,000 per transaction and per day; Taishin Bank NT$150,000; E.SUN NT$50,000 per withdrawal (50 banknotes) and NT$150,000 per day. It’s advisable to split withdrawals or use your own bank card to avoid cross-bank fees of NT$5 per transaction.

Q: What documents are needed for in-branch exchange?
ID card + passport (for foreigners, passport + residence permit). If booked online, also bring transaction notification. Under 20 needs a parent’s accompaniment; for large exchanges over NT$100,000, a source of funds declaration may be required.

Summary: Batch exchange + comprehensive planning

Yen is no longer just for travel “pocket money,” but also a hedging and investment asset. Whether you plan to visit Japan next year or want to leverage the TWD depreciation for asset allocation, following the principles of “batch exchange + don’t leave your money idle” can minimize costs and maximize returns.

Beginners are advised to start with the simplest options like “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then, as they become familiar, move on to deposit into fixed deposits, ETFs, or even try forex swing trading. This way, you can enjoy more cost-effective travel and add a layer of protection during global market turbulence.