Yen exchange rate approaches 4.85 directly; five major investment and currency exchange plans explained in one go

The NT dollar to Japanese Yen exchange rate recently reached the 4.85 mark (December 10, 2025). The popularity of travel to Japan continues to rise, and many investors are starting to consider allocating assets in Japanese Yen. But how can you complete currency exchange in the most cost-effective way? This article provides an in-depth analysis of the five most mainstream currency exchange channels in Taiwan and offers practical suggestions for choosing among them.

The Core Value of Exchanging for Japanese Yen: Not Just for Traveling

Many people treat exchanging for Yen as purely for travel expenses, but in reality, the uses of Yen are far more diverse.

Daily Application

During travel, cash expenses are often needed (cash acceptance in Tokyo, Osaka, Hokkaido, etc., still exceeds 40%), purchasing Japanese cosmetics and clothing, or buying anime merchandise via proxy platforms—these are common scenarios for Yen exchange. If planning to study abroad or work holiday, exchanging in advance can avoid risks from sudden exchange rate fluctuations.

Financial Asset Allocation Perspective

The Yen is one of the three major safe-haven currencies globally (alongside USD and Swiss Franc). It tends to appreciate during geopolitical tensions or market turbulence. For example, during the Russia-Ukraine conflict in 2022, the Yen appreciated about 8% within a week, while global stock markets fell by 10%. For Taiwanese investors, holding Yen positions is equivalent to hedging against fluctuations in the Taiwan stock market.

The Bank of Japan maintains an ultra-low interest rate environment (currently 0.5%), making Yen a primary “financing currency” for international arbitrage trading. Investors can profit by borrowing Yen at low interest rates and converting to higher-yield USD (current US-Japan interest differential about 4%), especially when interest rate cycles turn.

Cost Testing of Five Currency Exchange Channels

Option 1: In-Person Bank Exchange

The traditional method is to carry NT dollars in cash and go directly to a bank branch or airport counter to exchange for Yen cash. Advantages include straightforward operation, full denominations (1,000, 5,000, 10,000 Yen options), and on-site assistance from tellers.

Disadvantages are that it uses “cash selling rates,” which are about 1-2% worse than the international spot rate, plus some banks still charge fixed handling fees, making the overall cost higher. For example, as of December 10, 2025, Taiwan Bank’s cash selling rate is 0.2060 TWD/JPY (1 TWD = 4.85 Yen). Exchanging 50,000 TWD could result in a loss of NT$1,500-2,000.

This method requires matching bank operating hours (weekday 9:00-15:30), with limited withdrawal times. Best suited for travelers unfamiliar with digital operations or needing small, urgent exchanges.

Major banks’ cash selling rates and in-person fees (2025/12/10):

• Taiwan Bank: 0.2060 TWD/JPY, free
• Mega International Bank: 0.2062 TWD/JPY, free
• CTBC Bank: 0.2065 TWD/JPY, free
• First Commercial Bank: 0.2062 TWD/JPY, free
• E.SUN Bank: 0.2067 TWD/JPY, NT$100 per transaction
• SinoPac Bank: 0.2058 TWD/JPY, NT$100 per transaction
• Hua Nan Bank: 0.2061 TWD/JPY, free
• Cathay United Bank: 0.2063 TWD/JPY, NT$200 per transaction
• Taipei Fubon Bank: 0.2069 TWD/JPY, NT$100 per transaction

Option 2: Online Account Currency Exchange

Using bank apps or online banking platforms, transfer NT dollars into a foreign currency account and convert to Yen at the spot selling rate (about 1% better than cash selling rate). If cash withdrawal is needed, it can be done at bank counters or foreign currency ATMs, but additional FX handling fees apply (usually NT$100+).

Advantages include 24/7 operation, ability to stagger entries to average costs, and relatively favorable rates—suitable for observing low points (NTD/JPY below 4.80) to exchange. Disadvantages are the need to open a foreign currency account in advance and potential withdrawal fees (interbank NT$5-100).

Ideal for readers with foreign exchange investment experience and frequent use of foreign currency accounts, possibly combined with Yen fixed deposits (current annual interest 1.5-1.8%) for yield.

Option 3: Online Currency Settlement with In-Person Pickup

No need for a foreign currency account; fill in currency, amount, expected pickup date, and branch on the bank’s website, then pick up in person with ID and transaction notice. Taiwan Bank and Mega International Bank offer this service, with appointment options at airport branches.

Taiwan Bank’s “Easy Purchase” online currency settlement service has no handling fee (NT$10 via Taiwan Pay), with an exchange rate advantage of about 0.5%. Taoyuan Airport has 14 Taiwan Bank outlets (including 2 24-hour branches), ideal for planning before departure.

Advantages include favorable rates, often no handling fee, and designated airport pickup. Disadvantages are the need for prior appointment (1-3 days ahead), limited to banking hours, and no changes once a branch is selected. Best suited for travelers with detailed planning.

Option 4: Foreign Currency ATM Self-Service Withdrawal

Use chip-enabled financial cards at foreign currency ATMs to withdraw Yen cash, supporting 24-hour operation. For other bank cards, only a NT$5 interbank fee applies. Supports major currencies like Yen, but with limited locations (about 200 units nationwide).

E.SUN Bank’s foreign currency ATMs allow direct withdrawal from NT dollar accounts in Yen, with a daily limit of NT$150,000 and no FX handling fee. Note that within Japan, ATM withdrawal services will be adjusted by the end of 2025 to support only international cards (Mastercard/Cirrus).

This method offers instant withdrawal, high flexibility, and avoids counter queues. Drawbacks include limited locations and denominations (fixed 1,000, 5,000, 10,000 Yen), and cash shortages during peak times (e.g., airports). Especially suitable for urgent, on-the-spot needs.

Bank foreign currency ATM single/ daily withdrawal limits (2025/12/10):

• CTBC Bank: equivalent NT$120,000/day for own cards; up to NT$20,000 per transaction for other bank cards
• Taishin Bank: equivalent NT$150,000/day for own cards; NT$20,000 per transaction for other bank cards
• E.SUN Bank: equivalent NT$50,000/day or 50 banknotes; annual limit NT$150,000; other bank cards per issuer rules

Cost Comparison Table of the Five Options

(Estimated cost based on exchanging NT$50,000, data as of December 2025)

Timing Evaluation for Exchanging Yen in 2025

As of December 10, 2025, the NT dollar to Yen remains around 4.85. Compared to the beginning of the year at 4.46, it has appreciated about 8.7%, providing notable exchange gains for Taiwanese investors. In the second half of the year, demand for Yen exchange increased by 25% year-over-year, mainly driven by travel recovery and hedging needs.

Short-term Exchange Rate Outlook

The Bank of Japan Governor Ueda Kazuo recently made hawkish comments, raising expectations of a rate hike to 0.75% at the December 19 meeting (a 30-year high), with Japanese government bond yields reaching 1.93%, a 17-year high. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now, with short-term fluctuations possibly around 155. and a long-term bottom forecast below 150.

For investment purposes, Yen remains a major safe-haven currency worth holding to hedge against Taiwan stock market volatility. However, be cautious of the risk of profit-taking unwinding, which could cause 2-5% fluctuations. The best strategy is to stagger entries and avoid exchanging all at once.

Asset Allocation After Currency Exchange

After converting to Yen, rather than letting the funds sit idle with no interest, consider moving into stable income or growth investments. Four suitable options for beginner investors are:

Yen Fixed Deposit (Conservative): Open foreign currency accounts with E.SUN Bank or Taiwan Bank, deposit online, starting from 10,000 Yen, with annual interest rates of 1.5-1.8%.

Yen Insurance Policies (Mid-term Hold): Purchase savings insurance from Cathay or Fubon Life, with guaranteed interest rates of 2-3%, suitable for 3-5 year holding periods.

Yen ETFs (Growth): For example, Yuanta 00675U tracking Yen index, purchasable in broker apps via fractional shares, suitable for monthly dollar-cost averaging.

Yen Forex Trading (Swing Trading): Trade USD/JPY or EUR/JPY directly on forex platforms, supporting zero commission, low spreads, and 24-hour trading—ideal for investors with some experience.

While Yen has hedging features, it still faces two-way volatility. BOJ rate hikes support the currency, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) could exert downward pressure. For investment allocation, Yen ETFs (like 00675U, with 0.4% annual management fee) can diversify risk without directly exposing to forex fluctuations.

Frequently Asked Questions

Q. What is the difference between cash rate and spot rate?

Cash rate (Cash Rate) applies to physical banknotes or coins, offering convenience for immediate delivery and portability. However, it usually has a 1-2% worse rate than the spot rate, plus possible handling fees.

Spot rate (Spot Rate) is the exchange rate settled within two business days (T+2) in the forex market, mainly used for electronic transfers, interbank settlements, import/export, and personal foreign currency accounts. It is closer to the international market price but requires T+2 settlement.

Q. How much Yen can I get with NT$10,000?

Using the December 10, 2025, Taiwan Bank cash selling rate of approximately 0.2060 TWD/JPY (1 TWD = 4.85 Yen), NT$10,000 can be exchanged for about 48,500 Yen. Using the spot selling rate (~0.2058), it would be about 48,700 Yen—roughly NT$40 difference.

Q. What documents are needed for in-person currency exchange?

Taiwanese citizens need to bring ID card and passport; foreigners need passport and residence permit. For corporate exchanges, business registration proof is required. If pre-booked online currency settlement, bring transaction notice. Minors under 20 need parental accompaniment and consent. For large exchanges over NT$100,000, source of funds declaration may be required.

Q. How does exchanging AUD for TWD differ from Yen exchange?

The process is similar—via bank counters, online exchange, or ATMs. However, AUD and Yen have different fluctuation characteristics: AUD is more affected by commodity prices (iron ore, coal), while Yen is influenced by BOJ policies and global risk sentiment. Timing decisions should consider these fundamental factors.

Key Recommendations Summary

Yen has evolved from a simple “travel pocket money” to a multi-faceted asset with hedging and investment value. Whether aiming for international travel next year or hedging Taiwan stock risks, the key is to follow the principles of “staggered exchange” and “active asset allocation after exchange” to minimize costs and maximize returns.

Beginners are advised to start with “Taiwan Bank online currency settlement + airport pickup” or “foreign currency ATM,” then gradually move into fixed deposits, ETFs, or short-term forex swing trading as familiarity grows. This approach makes travel more economical and adds a layer of protection for personal assets amid global market turbulence.