Is it a good time to exchange Japanese Yen now? Hand-in-hand guide to 4 exchange methods to save the most

The NT$ to JPY exchange rate has reached 4.85, and market demand for currency exchange has surged. But did you know that just by choosing different currency exchange channels, you can save or lose thousands of dollars? We’ve compiled the latest real-time rates and data from various banks to help you find the most cost-effective route.

Why should you exchange to JPY now? Three perspectives to tell you

Travel recovery boosts cash demand

Japanese tourism is rebounding, but it’s not just for leisure. Over 40% of stores in Tokyo, Osaka, and Hokkaido only accept cash (credit card penetration is only 60%), and the purchasing market also requires direct payment in yen. Most importantly, many people are using yen for hedging strategies.

JPY is one of the world’s three major safe-haven currencies

The US dollar, Swiss franc, and Japanese yen are considered safe-haven assets. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in one week, successfully buffering stock market declines. For Taiwanese investors, exchanging to yen is not just for consumption but also a strategy to hedge against Taiwan stock market volatility.

Exchange rates are at a critical point

Compared to 4.46 at the beginning of the year, the yen has appreciated by 8.7%. Latest data shows that Taiwan’s currency exchange demand in the second half of the year has grown by 25%. Bank of Japan Governor Ueda Kazuo has signaled a hawkish stance, and the market expects the December 19 meeting to raise interest rates to 0.75% (a 30-year high), supporting the yen’s strength.

However, there is a risk: USD/JPY has fallen from a high of 160 to 154.58, with a short-term test of 155 possible, but medium to long-term forecasts suggest below 150. Arbitrage positions may experience 2-5% volatility when closing.

4 methods of currency exchange, real-time rates comparison

Method 1: Traditional in-person currency exchange (highest cost but safest)

Bring cash NT$ to a bank or airport counter to get yen notes on the spot. Looks convenient, but banks use “cash selling rates” (1-2% worse than online banking rates), plus handling fees, resulting in a total loss of NT$1500-2000 (based on NT$50,000).

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 (1 NT$ = 4.85 yen). Other banks:

Suitable for: Travelers with urgent needs at the airport or unfamiliar with online operations.

Method 2: Online banking exchange + in-person pickup (balanced approach)

Use banking app or online banking to convert NT$ to yen and deposit into a foreign currency account (using “spot sell rate,” about 1% better). If you need cash, you can pick it up at a branch or withdraw via foreign currency ATM, incurring small fees (from NT$100). Losses are NT$500-1000.

Advantages: can buy in installments 24/7 at low points (when NT$ to JPY is below 4.80), averaging the cost.

Suitable for: Investors experienced in forex, wanting to set up yen fixed deposits (annual interest 1.5-1.8%) or yen ETFs.

Method 3: Online currency settlement + airport pickup (best for commuters)

Taiwan Bank’s “Easy Purchase” with no handling fee (using TaiwanPay, only NT$10), with a favorable rate of 0.5%. You reserve online, select branch and pickup date, then just bring ID and transaction notification to pick up. Loss is NT$300-800.

Key advantage: Taoyuan Airport has 14 Taiwan Bank branches, including 2 open 24 hours. Suitable for booking a week before departure, then picking up on the day.

Suitable for: Organized travelers who want to withdraw cash directly at the airport.

Method 4: Foreign currency ATMs (most flexible option)

Use a chip-enabled debit/credit card at foreign currency ATMs for 24/7 withdrawals, with only NT$5 fee for interbank transactions. Loss NT$800-1200.

But there are two limitations: only about 200 units nationwide, limited currencies. SinoPac’s foreign currency ATM has a daily limit of NT$150,000. During peak times (like airports), cash may run out, so plan ahead and don’t wait until the last minute.

Suitable for: Urgent needs or busy professionals with no time to visit banks.

Is it really worthwhile to exchange to yen now?

Short-term signals

The Bank of Japan is on the verge of raising rates, with Japanese government bonds yielding 1.93%, a 17-year high. This favors a bullish yen. But global arbitrage may face unwinding pressure, and geopolitical risks (Taiwan Strait, Middle East) could temporarily weaken the currency. Expect short-term fluctuations around 154-155.

Medium to long-term outlook

The US has entered a rate-cut cycle, which could support the yen. But the Bank of Japan’s rate hikes are moderate, unlikely to significantly strengthen the yen. Forecasts suggest USD/JPY below 150 in the medium to long term, which benefits Taiwanese investors exchanging to yen.

Our advice: stagger your exchanges, don’t convert all at once.

Now is a good time, but diversify risk. Consider 3-5 installments every 1-2 weeks. If you can’t monitor the rate yourself, use “Taiwan Bank online settlement + airport pickup” for minimal risk.

After exchanging to yen, how to use it?

Don’t let yen sit idle—4 ways to grow its value

1. Yen fixed deposit: Most stable. E.SUN and Taiwan Bank offer foreign currency accounts, starting from 10,000 yen, with annual interest 1.5-1.8%.
2. Yen savings insurance: Cathay, Fubon Life offer guaranteed 2-3% interest, medium-term locked-in returns.
3. Yen ETFs (00675U, 00703): Growth-oriented, tracking yen index, can buy fractional shares for regular investment.
4. Forex trading USD/JPY, EUR/JPY: Swing trading, long/short, 24/7, suitable for experienced investors.

While yen is a safe haven, it also fluctuates bidirectionally. Beginners should start with fixed deposits, then consider ETFs or forex trading. For swing trading, choose reputable platforms with stop-loss, take-profit, and trailing stop tools.

Practical Q&A

Q: How much is the difference between cash rate and spot rate?

Cash rate applies to physical cash transactions, allowing immediate withdrawal, but with a 1-2% rate difference. Spot rate is used for electronic transfers (T+2 settlement), offering better rates close to international market prices. The difference is about NT$40-80 per NT$10,000.

Q: How many yen for NT$10,000?

Using Taiwan Bank’s rate on December 10, 2025: 0.2060 (NT$1 = 4.85 yen), NT$10,000 ≈ 48,500 yen. Using spot rate 4.87, it’s about 48,700 yen, a difference of 200 yen (~NT$40).

Q: What to bring for in-person exchange?

Taiwanese: ID card + passport. Foreigners: passport + residence permit. If pre-booked online, also bring transaction notification. Under 20? Must be accompanied by a parent. For amounts over NT$100,000, declare source of funds.

Q: What’s the limit for foreign currency ATM withdrawals?

From 2025, banks have adjusted limits:

Consider splitting withdrawals or using your own bank card to avoid fees. Cash may run out during peak times, so plan ahead.

Summary: From “pocket money” to “asset”

Yen is no longer just for travel; it now functions as a hedge and small-scale investment. Mastering “staggered exchange + immediate value growth” can minimize costs and maximize returns.

Beginners should start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then transfer yen into fixed deposits, ETFs, or swing trading based on needs. Not only can you enjoy cost-effective travel, but you also gain an extra layer of protection during market turbulence.

Finally, don’t be fooled by short-term exchange rate fluctuations. Long-term, USD/JPY and TWD/JPY still have support. Now is the opportunity.