Is exchanging 10,000 TWD for JPY worth it? A practical comparison of 4 major methods

Are you ready to exchange for Japanese Yen? As of 2025, the Taiwan dollar to Japanese Yen exchange rate has dropped to 4.85, and travel to Japan and Yen investments are booming again. But the question is—what’s the most cost-effective way to exchange?

We will clearly explain the latest 4 currency exchange channels for you. Whether it’s NT$50,000 or NT$10,000, whether for travel or small-scale investment, you can quickly find the most economical option.

Quick Overview: Cost Comparison of 4 Major Currency Exchange Methods

Suppose you want to exchange NT$50,000 for Yen, how much more will each method cost?

Conclusion: For NT$50,000-200,000, a mix of “online exchange + foreign currency ATM” is the most cost-effective.

Why exchange Yen now?

Travel and daily needs

Most shops in Tokyo and Osaka only accept cash (credit card penetration is only 60%). Hokkaido skiing, Okinawa vacations, Japanese purchasing agents, and drugstore direct purchases all require Yen cash. People planning long-term study abroad or working holidays usually exchange in advance to avoid exchange rate fluctuations.

Financial Market Perspective: One of the three major safe-haven currencies

The Yen, alongside the US dollar and Swiss franc, is one of the world’s three major safe-haven currencies due to Japan’s stable economy and manageable debt. During market turbulence, funds often flow into Yen for protection—when Russia-Ukraine conflict erupted in 2022, the Yen appreciated 8% in a week, while stocks fell 10%. For Taiwanese investors, exchanging Yen isn’t just for leisure; it also hedges against Taiwan stock market volatility.

Low-interest arbitrage currency

Japan maintains ultra-low interest rates (only 0.5%), making Yen a “financing tool” for international arbitrage trading. Many investors borrow low-interest Yen to invest in higher-yield USD (the US-Japan interest rate gap once reached 4.0%), then close positions and buy back Yen when risks rise. This is also a reason for Yen’s higher volatility.

Details of 4 Currency Exchange Methods

1. Bank Counter Cash — The Most Traditional, Highest Cost

Bring cash NT$ to a bank branch or airport counter to exchange for Yen cash. Simple operation, but using “cash selling rate” (which is 1-2% worse than account transfer rate), plus possible handling fees, increases overall cost.

For example, Taiwan Bank (December 2025 data):

• Cash selling rate: about 0.2060 Yen per NT$ (i.e., NT$1 = 4.85 Yen)
• NT$10,000 can exchange for about 48,500 Yen
• No handling fee

Quick check of bank cash rates (as of 2025/12/10):

• Taiwan Bank: 0.2060 (free)
• Mega International Bank: 0.2062 (free)
• CTBC Bank: 0.2065 (free)
• E.SUN Bank: 0.2067 (NT$100 per transaction)
• Cathay United Bank: 0.2063 (NT$200 per transaction)
• Taipei Fubon Bank: 0.2069 (NT$100 per transaction)

Suitable for: Those unfamiliar with online operations or needing small, urgent exchanges (e.g., at the airport).

Disadvantages: Limited business hours (weekday 9:00-15:30), fixed denominations, queues.

2. Online Exchange + Cash or ATM Withdrawal — Balanced Approach

Use bank app or online banking to convert NT$ into Yen and deposit into a foreign currency account, using “account transfer rate” (about 1% better than cash rate). If cash is needed, go to the bank counter or withdraw via foreign currency ATM, but withdrawal fees apply (around NT$100+).

Features: Observe exchange rate trends, buy in installments at low points (e.g., when NT$ to Yen drops below 4.80).

Suitable for: Those experienced in forex, planning to exchange periodically for average cost. After exchanging Yen, can also transfer into fixed deposits (current annual interest 1.5-1.8%) for earning interest.

Disadvantages: Need to open a foreign currency account first, withdrawal fees extra.

3. Online Reservation & Currency Exchange — Best Rate, Airport Pickup

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank website. After remittance, bring ID and transaction notification to pick up in person. Taiwan Bank and Mega International Bank offer this service, with airport branches available.

Taiwan Bank’s “Online Currency Exchange” has no handling fee (pay NT$10 via TaiwanPay), with about 0.5% better rate. Taoyuan Airport has 14 Taiwan Bank outlets (2 open 24 hours), suitable for direct pickup before departure.

Advantages: Best exchange rate, often no handling fee, can specify airport pickup.

Disadvantages: Need to book 1-3 days in advance, pickup limited to bank hours, branch cannot be changed.

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

4. Foreign Currency ATM — 24/7 Convenience, Low Limit

Use chip-enabled bank card at foreign currency ATMs to withdraw Yen cash, supporting 24-hour operation and interbank withdrawals. Deducted directly from Taiwan dollar account, with a cross-bank fee of NT$5.

For example, E.SUN Bank’s foreign currency ATM:

• Daily withdrawal limit: equivalent to NT$150,000
• No exchange fee
• Denominations: fixed at 1,000/5,000/10,000 Yen

Note: Japan ATM withdrawal services will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus). About 200 Taiwan ATMs nationwide, but not everywhere. During peak times (e.g., airports), cash may run out; don’t wait until the last minute.

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

Disadvantages: Limited locations and denominations, cash may be out of stock during busy periods.

Is it worthwhile to exchange Yen now?

Yes, but operate in installments.

Exchange rate current status and trend

As of December 10, 2025, NT$ to Yen is about 4.85. Compared to 4.46 at the start of the year, it has appreciated about 8.7%, which is quite favorable for Taiwanese investors, especially under NT$ depreciation pressure. In the second half of the year, foreign exchange demand in Taiwan increased by 25%, mainly due to travel recovery and hedging needs.

Short-term volatility risk

The Yen exchange rate remains quite volatile. The US entering a rate-cut cycle supports Yen, but the Bank of Japan is on the verge of raising rates. Recently, BOJ Governor’s hawkish comments pushed market expectations for a rate hike to 80%, with a forecast of a rate increase in late December to a 30-year high. Long-term Japanese government bond yields have hit a 17-year high.

USD/JPY( from a high of 160 at the start of the year to around 154 now, may briefly return to 155, but medium to long-term forecasts suggest below 150.

) Investment Advice

As a safe-haven currency, Yen is suitable for hedging Taiwan stock market fluctuations. But short-term risks include arbitrage closing positions, which could cause 2-5% fluctuations. It’s recommended to buy in installments, avoid exchanging all at once.

After exchanging Yen, don’t let your money sit idle:

• Fixed deposits: Starting from 10,000 Yen, annual interest 1.5-1.8%, most stable
• Savings insurance: Guaranteed interest rate 2-3%, medium-term holding
• Yen ETFs (e.g., Yuanta 00675U, 00703): Track Yen index, annual management fee 0.4%, dollar-cost averaging to diversify risk
• Forex trading in bands: Trade USD/JPY or EUR/JPY, 24/7 long/short operations

Quick Q&A

Q: How big is the difference between cash rate and account transfer rate?

Cash rate (cash selling) is the rate banks offer for physical cash, suitable for travel exchange. It’s advantageous because you get cash immediately, but usually 1-2% worse than account transfer rate.

Account transfer rate (spot selling) is the rate for settlement within two business days in the forex market, mainly used for electronic transfers or non-cash transactions. It’s more favorable and close to international market prices.

Q: How much Yen can NT$10,000 buy?

Using Taiwan Bank’s cash rate 0.2060, NT$10,000 can buy about 48,500 Yen. Using account transfer rate (~0.2051), about 48,700 Yen—difference of roughly 200 Yen (about NT$40).

Q: What ID do I need to bring for counter exchange?

Taiwan residents: ID card + passport. Foreigners: passport + residence permit. If pre-booked online, also bring transaction notification. Under 20 need parent’s consent and ID. For large amounts (over NT$100,000), may need to declare source of funds.

Q: Are there limits for foreign currency ATM withdrawals?

Different banks have different limits. For example, E.SUN Bank’s card limit is NT$50,000 per transaction, NT$150,000 per day. Others depend on issuing bank. After new regulations in 2025, most banks’ daily limits are reduced to NT$100,000-150,000. It’s advisable to split withdrawals or use your own bank card to avoid cross-bank fees.

Summary

Yen is no longer just pocket money for travel; it’s an asset with hedging and small investment value. Whether you plan to visit Japan next year or want to hedge against NT$ depreciation by converting some funds into Yen, following the principles of “batch exchange + planned completion” can minimize costs and maximize gains.

We recommend beginners start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transfer Yen into fixed deposits, ETFs, or band trading based on your needs. This way, you can enjoy cost-effective travel and add a layer of protection during global market turbulence.