Which method should I choose to buy Japanese Yen? The four major channels' cost breakdown

The NT dollar against the Japanese yen has broken through the 4.85 mark, and many people are starting to seriously consider buying yen. Whether it’s for traveling abroad, Japanese purchasing代理, or taking the opportunity to enter the market for hedging investments, the key question is—what is the most cost-effective way to buy yen?

We have collected the four most practical yen purchasing options available today, calculated with real data to show you how much each saves. If your budget is between 50,000 and 200,000 NT dollars, we especially recommend the “online exchange combined with ATM withdrawal” hybrid strategy.

Reasons to buy yen go far beyond travel

Many think that exchanging yen is just for going abroad, but in reality, the yen has strong practicality in daily consumption and financial markets.

Practical needs in daily life

People planning to shop in Tokyo, ski in Hokkaido, or vacation in Okinawa mostly still pay with cash (credit card penetration is just over 60%). Fans of Japanese cosmetics, fashion, or anime merchandise often need to pay directly in yen. Students planning to study or work in Japan can buy yen in advance to avoid the costs associated with sudden exchange rate fluctuations.

Investment perspective is even more important

The yen is one of the world’s three major safe-haven currencies (the other two are USD and Swiss Franc). During market turbulence, funds tend to flow into the yen for protection. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, successfully buffering stock market declines. For Taiwanese investors, buying yen not only allows for leisure activities but also hedges against Taiwan stock market risks.

The Bank of Japan has maintained an ultra-low interest rate policy (around 0.5%) for a long time. Many traders borrow low-interest yen to exchange for higher-yield USD investments, with a spread of about 4.0%. When risks increase, they close their positions and buy yen again. This arbitrage activity makes the yen market highly liquid and beneficial for small investors.

Detailed comparison of four ways to buy yen

Strategy 1: Traditional bank counter purchase

Bring NT cash directly to a bank or airport counter to exchange for yen cash. The simplest and most direct method, but also the most expensive.

Banks use “cash selling exchange rates” (1-2% worse than the market spot rate), and some banks charge handling fees, making the overall cost unavoidable. For example, Taiwan Bank’s cash selling rate on December 10, 2025, was about 0.2060 NT per yen (1 NT dollar = 4.85 yen), with some banks charging an additional 100-200 NT dollars handling fee.

Advantages: Simple process, safe and reliable, full denominations (1,000, 5,000, 10,000 yen), staff assistance available.

Disadvantages: Worst exchange rate, limited to business hours (9 am to 3:30 pm on weekdays), handling fees can add up.

Suitable for: Those unfamiliar with online operations or needing small amounts of yen urgently.

Major banks’ cash selling exchange rates overview (as of December 10, 2025):

Strategy 2: Online exchange then counter or ATM withdrawal

Log into your bank app or online banking, use the “spot sell rate” to convert NT dollars into yen and deposit into a foreign currency account (saving about 1%), then withdraw cash at a counter or ATM when needed. However, you will pay a spread fee (usually starting at 100 NT dollars).

This approach suits those who want to observe the exchange rate gradually and buy in batches at lower points, e.g., when NT to yen drops below 4.80.

Advantages: 24/7 operation, allows averaging costs over multiple purchases, better exchange rates than counters.

Disadvantages: Need to open a foreign currency account first, cash withdrawal incurs additional fees (5-100 NT dollars cross-bank).

Suitable for: Investors experienced in forex, using foreign currency accounts regularly, and can also invest in yen deposits (annual interest rate about 1.6%).

) Strategy 3: Online reservation then airport pickup

No need to open a foreign currency account. Fill in the desired yen amount, denomination, and pickup branch on the bank’s website. After remittance, bring ID and transaction notification to pick up at the designated branch. Taiwan Bank and Mega Bank offer this service, with some even allowing reservation at airport branches.

Taiwan Bank’s “Easy Purchase” online currency exchange fee is nearly free (pay only 10 NT dollars via TaiwanPay), with about 0.5% better exchange rate. Very convenient for travelers—Taoyuan Airport has 14 Taiwan Bank outlets, 2 of which operate 24 hours.

Advantages: Better exchange rates, usually no handling fee, can pick up at the airport.

Disadvantages: Must book in advance (at least 1-3 days), pickup only during bank hours, cannot change branch once booked.

Suitable for: Travelers with fixed itineraries who plan to buy yen the day before departure.

Strategy 4: 24-hour foreign currency ATM self-service withdrawal

Use a chip-enabled bank card at a foreign currency ATM to withdraw yen cash. Operates 24/7, with only a 5 NT dollar cross-bank fee deducted directly from your NT account. The only issue is limited locations (about 200 nationwide), fixed denominations (1,000, 5,000, 10,000 yen), and potential shortages during peak times.

For example, E.SUN Bank’s foreign currency ATMs allow a daily limit of 150,000 NT dollars for yen purchases from your NT account, with no extra fee. Note that Japan ATM withdrawal services are expected to be adjusted by the end of 2025, requiring international cards (Mastercard or Cirrus).

Advantages: Instant access, flexible operation, no extra fee from NT account.

Disadvantages: Limited locations, fixed denominations, shortages during busy hours.

Suitable for: Those who don’t have time to visit branches or need cash urgently.

Cost comparison of the four methods

Estimating with 50,000 NT dollars worth of yen, how much does each method actually cost?

Is now a good time to buy yen?

As of December 10, 2025, the NT dollar against the yen reached 4.85, up 8.7% from 4.46 at the start of the year. For those planning to buy yen, the exchange gains are already quite favorable, especially in an environment where the NT dollar is under downward pressure.

In the second half of 2025, Taiwan’s forex demand grew by 25%, mainly driven by the recovery of travel and increased hedging investments.

Is it worthwhile? Yes, but it requires phased operations. The yen exchange rate is currently fluctuating within a wide range. The US entering a rate cut cycle is beneficial for the yen, but the Bank of Japan’s rate hike is imminent. BOJ Governor Ueda recently issued hawkish comments, and the market expects a 0.25 bps hike at the December 19 meeting to 0.75% (highest in 30 years), with Japanese 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 154.58 now, possibly returning to 155 short-term, but medium to long-term forecasts suggest below 150.

From an investment perspective, the yen as a major safe-haven currency is suitable for hedging Taiwan stock market volatility, but short-term risks include a wave of arbitrage unwinding, causing 2-5% fluctuations. It is recommended to buy in batches rather than all at once.

Investment allocation after buying yen

After purchasing yen, don’t let your money sit idle without interest. Consider these four ways to generate returns:

Yen fixed deposit: Conservative choice. Open a foreign currency account at E.SUN or Taiwan Bank, deposit online. Minimum 10,000 yen, annual interest rate 1.5-1.8%.

Yen insurance policy: Medium-term holding. Buy savings insurance from Cathay or Fubon Life, with guaranteed interest rates of 2-3%.

Yen ETFs: Growth-oriented. ETFs tracking the yen index like Yuanta 00675U, can buy fractional shares via broker apps, suitable for regular investment.

Yen forex trading: Swing trading. Trade yen pairs directly on forex platforms, e.g., USD/JPY or EUR/JPY. Both long and short, 24-hour trading, with small capital. Benefits include zero commission, low spreads, and tools like stop-loss and take-profit.

Although yen is a safe-haven, it still fluctuates bidirectionally. BOJ rate hikes are positive, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) may suppress the yen. For investment, choosing ETFs like 00675U (annual management fee 0.4%) can diversify risk. For intraday or swing trading, forex is a classic way to capture exchange rate movements.

Common questions about buying yen

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

Cash rate is the rate banks use for physical cash (notes and coins) transactions, applicable on-site. It’s convenient for immediate cash delivery but usually 1-2% worse than the spot rate, with higher costs.

Spot rate is the rate for foreign exchange market settlement within two business days, used for electronic transfers and non-cash transactions. It’s more favorable (closer to international market) but requires T+2 settlement.

Q. How much yen can I get with 10,000 NT dollars?

Use this formula: Yen amount = NT dollars × current exchange rate

At Taiwan Bank’s cash selling rate of 4.85 on December 10, 2025, 10,000 NT dollars ≈ 48,500 yen. Using the spot rate of 4.87, it’s about 48,700 yen, a difference of roughly 200 yen (about NT 40).

Q. What ID do I need to buy yen at the counter?

Taiwanese: ID card and passport; foreigners: passport and residence permit. For corporate purchases, business registration documents are required. If pre-booked online, bring transaction notification. Minors under 20 need parental consent and ID; large amounts (over 100,000 NT) may require source of funds declaration.

Q. Are there limits on foreign currency ATM withdrawals?

Different banks have different limits. As of 2025, the latest regulations:

Post-2025, daily limits mostly reduced to NT 100,000-150,000. It’s advisable to split withdrawals or use your own bank card to avoid cross-bank fees. During peak hours (like at airports), cash may run out early, so plan ahead.

Final advice on buying yen

The yen has long surpassed the “travel pocket money” role, becoming an asset with both hedging and small investment value. Whether you plan to visit Japan next year or want to hedge against NT dollar depreciation by converting funds into yen, following the principles of “batch buying and active utilization” can minimize costs and maximize returns.

We recommend beginners start with the simplest options like “Taiwan Bank online reservation plus airport pickup” or “foreign currency ATM,” then transfer yen into deposits, ETFs, or even try forex trading based on needs. This approach not only makes traveling more economical but also adds a layer of financial protection during global market turbulence.