Four Secret Tips for Exchanging Japanese Yen: How to Exchange with the Least Loss?

December 10, 2025, the NT dollar to Japanese Yen surged to 4.85, and what to bring and how to exchange currency cost-effectively has become a hot topic.

Rather than blindly going to the bank, it’s better to understand the cost differences among these 4 exchange channels—using the same 50,000 NT dollars, choosing the wrong method could cost an extra 1,500 yuan, while the right method can save up to 800 yuan. We’ve summarized this once and for all to help you find your best currency exchange plan.

Why is exchanging yen now meaningful?

When it comes to foreign currencies, many people’s first reaction is the Japanese Yen. This is not only because Japan is fun, but more importantly, the yen plays a hedging role in the financial market.

Travel perspective: Shopping in Tokyo, skiing in Hokkaido, vacationing in Okinawa—most stores still prefer cash (credit card penetration less than 60%), which is why many people exchange yen cash before traveling abroad. Purchasing agents and Japanese online shopping also often require direct yen payments.

Investment perspective: The yen is one of the world’s three major safe-haven currencies (along with USD and Swiss Franc). When global markets fluctuate, funds flow into the yen for safety. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, buffering stock market declines. For Taiwanese investors, exchanging yen is not just for travel preparation but also for hedging Taiwan stock risks.

Additionally, the recent hawkish stance of Bank of Japan Governor Ueda Kazuo has strengthened market expectations of a rate hike to 0.75% in December (a 30-year high), boosting the yen’s attractiveness. This year, the NT dollar to yen exchange rate has risen from 4.46 at the start of the year to 4.85, an appreciation of 8.7%, making the investment gains quite substantial.

Breakdown of costs for 4 currency exchange channels

The differences in exchange rates across various channels seem small but can add up significantly over time. Let’s show you with real market prices.

Method 1: Bank counter cash exchange

Bring NT dollar cash directly to the bank counter or airport to exchange for yen cash. The simplest operation but also the most expensive.

Why? Banks use the “cash selling rate,” which is 1-2% worse than the international market spot rate. For example, Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 yen per NT dollar, meaning 1 NT dollar equals 4.85 yen. Some banks also charge handling fees.

For 50,000 NT dollars, Taiwan Bank has no handling fee, but E.SUN Bank and Mega International Bank charge 100 NT dollars, Cathay United Bank charges 200 NT dollars. This method results in a loss of about 1,500-2,000 yuan.

Suitable for: Those unfamiliar with online operations or needing small amounts for urgent airport use.

Method 2: Online exchange, withdrawal at counter or ATM

Use bank app or online banking to convert NT dollars to yen at “spot selling rate,” then deposit into a foreign currency account. When cash is needed, withdraw at counter or via foreign currency ATM.

Advantages: About 1% better than cash selling rate, operable 24/7, allows for phased entry to average costs. Disadvantage is that cash withdrawal incurs exchange spread handling fees (around NT$100+).

Taking E.SUN Bank as an example, online exchange uses a spot rate of about 4.87, and withdrawal fees are the difference between spot and cash rates. Overall, this results in a loss of about 500-1,000 yuan.

Suitable for: Those experienced in forex investment or with foreign currency accounts. After exchange, you can also transfer into yen fixed deposits (annual interest rate 1.5-1.8%) to keep the money working.

Method 3: Online currency conversion, designated airport pickup

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. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service, with appointment options at airport branches.

Benefits: Taiwan Bank’s online currency conversion is fee-free (pay NT$10 via TaiwanPay), with about 0.5% better rate. It’s the smartest pre-departure booking method, especially at Taoyuan Airport where Taiwan Bank has 14 branches (2 open 24 hours). The loss is only about 300-800 yuan.

Suitable for: Planned travelers who want to pick up cash directly at the airport.

Method 4: Foreign currency ATM instant withdrawal

Use a chip-enabled financial card at foreign currency ATMs to withdraw yen cash, operable 24/7. Deducts NT dollars from your account with only NT$5 cross-bank fee.

Why choose this? Highest flexibility, no worries about urgent needs. Mega Bank’s foreign currency ATMs allow NT$15,000,000 daily withdrawal limit, with no exchange fee. Loss is about 800-1,200 yuan.

What to note? Limited ATM locations (about 200 nationwide), denominations fixed at 1,000, 5,000, 10,000 yen. During peak times (like airports), cash may be insufficient, so plan ahead.

Cost comparison table for 50,000 NT dollars to yen

Conclusion: For budgets of 50,000-200,000 NT dollars, “online currency conversion + airport pickup” is the most cost-effective; for urgent needs, foreign currency ATM offers the highest efficiency.

What to bring when exchanging currency? Practical checklist

Many people realize at the bank they forgot their ID, wasting time. Here’s a clear list:

For domestic person cash exchange:

• ID card + Passport (must bring)
• Cash (NT dollars)

For online pre-booked (online currency conversion):

• ID card + Passport (must bring)
• Transaction notification (generated during booking)

For large amounts (over 100,000 NT dollars):

• Above documents + source of funds declaration
• Bank may request explanation of the purpose of currency exchange

Special cases:

• Under 20 years old: parent accompaniment + consent letter
• Company account: business registration documents

Is now a good time to exchange? Exchange rate trend analysis

Short-term view: Yen fluctuates widely. USD/JPY dropped from 160 at the start of the year to 154.58; short-term may test 155, but medium to long-term forecast is below 150. The Bank of Japan’s rate hike expectation (meeting on December 19 to raise by 0.25 basis points to 0.75%) supports the yen, but global arbitrage unwinding could cause oscillations of 2-5%.

Strategy suggestion: Phased entry rather than all at once. For example, buy in 3-4 batches when NT$/JPY is below 4.80, averaging the cost.

Investment gains: From 4.46 at the start of the year to 4.85 now, an 8.7% increase. Considering the NT dollar’s long-term depreciation pressure, holding yen as a hedging asset still has potential.

How to make your yen holdings grow after exchange?

Don’t let the yen sit idle without interest. Here are 4 investment options suitable for small beginners:

1. Yen fixed deposit (conservative) Minimum 10,000 yen, annual interest 1.5-1.8%. E.SUN Bank, Taiwan Bank, etc., allow online deposits into foreign currency accounts.

2. Yen insurance policy (mid-term) Cathay Life, Fubon Life’s savings insurance, with guaranteed interest rates of 2-3%.

3. Yen ETFs (growth) Like Yuanta 00675U (tracking yen index), can buy fractional shares via broker apps, suitable for dollar-cost averaging. Management fee 0.4% annually.

4. Forex trading (swing) Trade USD/JPY or EUR/JPY directly on forex platforms to catch short-term fluctuations. Advantages include two-way trading, 24/7 operation, and small capital requirements.

Common Q&A

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

Cash rate is the bank’s rate for physical banknotes, for immediate delivery, convenient but with a 1-2% spread. Spot rate is the foreign exchange market rate for settlement within 2 business days, used for electronic transfers, closer to international market price, but requires T+2 settlement.

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

Use the formula 【Yen amount = NT dollars × rate】. For example, with Taiwan Bank’s cash selling rate of 4.85, 10,000 NT dollars can get about 48,500 yen. Using spot rate 4.87, about 48,700 yen, difference of roughly 200 yen (about NT$40).

Q. Is there a withdrawal limit at foreign currency ATMs?

Yes. After the new rules in October 2025, limits vary by bank. CTBC: NT$120,000/day; Taishin: NT$150,000/day; E.SUN: NT$150,000/day. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Q. What if cash runs out at peak times like airports?

Plan ahead—don’t wait until the last minute. If worried about cash shortage, pre-arrange online currency conversion 3-5 days in advance to pick up at airport branches.

Final advice

Yen is no longer just pocket money for travel but an asset with hedging and investment value. Whether you’re preparing for a trip to Japan next year or want to hedge against NT dollar depreciation by moving into yen, follow the principles of “phased exchange + don’t leave it idle” to minimize costs and maximize gains.

Beginners are advised to start with “Taiwan Bank online currency conversion + airport pickup” or “foreign currency ATM,” then transfer into fixed deposits, ETFs, or even try forex swing trading based on your needs. This way, traveling becomes more cost-effective and adds a layer of protection against global market turbulence.

Remember: what to bring and how to exchange without losing out depends on whether you’re willing to spend 5 more minutes to understand.