Japanese Yen Exchange Guide: The Best Routes and Bank Exchange Rates for Taiwan Dollar Exchange in 2025

This year, the NT$ to JPY exchange rate has reached 4.85, appreciating over 8% compared to 4.46 at the beginning of the year. As the Bank of Japan’s rate hike expectations heat up and global risk aversion increases, the Japanese yen is no longer just “pocket money” for travel but has become an important option for asset allocation. This article summarizes four latest currency exchange channels and compares bank exchange rates to help you carefully calculate every cent of your costs.

Why are investors starting to accumulate Japanese yen?

The core reasons why the yen attracts Taiwanese funds are threefold:

Risk Hedging Attribute Reignited
The yen, USD, and Swiss Franc are listed as the world’s three major safe-haven currencies. During the Russia-Ukraine conflict last year, the yen appreciated 8% in a single week, effectively buffering stock market declines. For Taiwanese investors, holding yen can hedge against Taiwan stock market volatility.

Bank of Japan Rate Hike Expectations Strengthen
BOJ Governor Ueda Kazuo recently made hawkish comments, boosting rate hike expectations to 80%, with a projected increase to 0.75% by mid-December (a 30-year high). Japanese bond yields have hit a 17-year high of 1.93%, attracting arbitrage capital.

Arbitrage Trading Opportunities
Japan maintains ultra-low interest rates (only 0.5%), creating a “funding currency.” Many institutions borrow low-interest yen, convert to high-yield USD (USD/JPY interest rate differential of 4.0%), and when risks rise, close the position by buying back yen. This volatility can bring short-term gains for traders but also entails 2-5% fluctuation risks.

Four Practical Currency Exchange Routes Comparison

Based on the latest data as of December 2025, the cost difference for exchanging NT$50,000 varies significantly. Here’s a breakdown:

Option 1: Traditional Over-the-Counter Currency Exchange (Highest Cost)

Carrying NT$ cash directly to a bank or airport counter to exchange for yen cash, using the “cash selling rate,” which is usually 1-2% worse than the spot rate.

Bank Exchange Rate and Fee Comparison Table (2025/12/10)

Exchanging NT$50,000 at Taiwan Bank over the counter would result in a loss of about NT$1,500-2,000. Suitable only for urgent airport needs or very small amounts.

Option 2: Online Currency Exchange + Counter Withdrawal (Moderate Cost)

Use bank app to convert at the spot rate, depositing NT$ into a foreign currency account. If cash is needed, withdraw at counters or foreign currency ATMs, incurring exchange spread fees (starting NT$100).

Advantages: Allows observing exchange rate trends and gradually entering the market, especially when NT$ to JPY is below 4.80. Overall cost loss is about NT$500-1,000.

Suitable for: Investors with forex experience planning long-term yen holdings.

Option 3: Online Currency Conversion + Airport Pickup (Recommended for Beginners)

No need to open a foreign currency account in advance. Fill in amount and pickup branch on the bank’s website, then pick up at the counter after completion. Taiwan Bank’s “Easy Purchase” service is fee-free (NT$10 if paid via TaiwanPay), with about 0.5% better exchange rate.

Features include booking at Taoyuan Airport’s 14 locations (including 2 24-hour branches), suitable for pre-trip planning. Cost for NT$50,000 is about NT$300-800 loss.

Note: Requires 1-3 days reservation; pickup time limited by bank hours; branches cannot change appointments on the spot.

Option 4: Foreign Currency ATM 24/7 Self-Service (Most Flexible)

Use a chip-enabled financial card to withdraw yen cash at foreign currency ATMs, operational 24 hours. Deducts only NT$5 cross-bank fee from your NT$ account, no exchange fee.

SinoPac’s foreign currency ATMs allow NT$ account withdrawals with a daily limit of NT$150,000. About 200 locations nationwide, but cash may run out during peak times (especially at airports).

Cost for NT$50,000 is about NT$800-1,200 loss, suitable for urgent or last-minute needs.

Which bank exchange rate is most cost-effective?

For a NT$50,000 exchange amount, the estimated cost ranking is:

Conclusion: For budgets between NT$50,000 and NT$200,000, a combination of “online exchange + airport pickup” or “online exchange + foreign currency ATM” can minimize costs.

Currency Exchange FAQs

Q: How much yen can NT$10,000 buy?
Using Taiwan Bank’s December 10, 2025, cash selling rate of 4.85, NT$10,000 ≈ 48,500 yen.
Using spot rate (~4.87), ≈ 48,700 yen.
Difference is about 200 yen (NT$40).

Q: What documents are needed for counter exchange?
ID card + passport are basic.
If pre-booked online (online exchange), also bring transaction notification.
Under 20 years old need parent accompaniment; over NT$100,000 exchange requires source of funds declaration.

Q: What’s the difference between cash rate and spot rate?
Cash rate applies to physical cash, with on-the-spot delivery but 1-2% worse than spot.
Spot rate is used for electronic transfers (T+2 settlement), more favorable but involves waiting.

Q: Are there limits on foreign currency ATM withdrawals?
Post-October 2025, most banks limit daily withdrawal to NT$100,000-150,000.
CTBC’s limit is NT$120,000, Taishin NT$150,000, E.SUN NT$150,000.
Recommend spreading withdrawals or using your bank card to avoid cross-bank fees.

End-of-2025 Yen Investment Outlook

Exchange Rate Trend: USD/JPY dropped from a high of 160 at the start of the year to around 154.58 now.
Short-term fluctuations may test 155 due to US rate cuts and BOJ rate hike expectations, but medium to long-term forecasts are below 150.

Investment Timing: Yes, but should be done gradually. Yen as a safe-haven asset is suitable for hedging Taiwan stocks, but arbitrage unwinding may cause 2-5% volatility.
Recommend entering in 3-5 batches to avoid all-in at once.

Post-Exchange Yen Asset Allocation

Once you have yen, don’t let it sit idle without interest. Here are four advanced options suitable for small-scale beginners:

1. Yen Fixed Deposit
Open a foreign currency account with E.SUN or Taiwan Bank, deposit starting from 10,000 yen online, with annual interest rates of 1.5-1.8%. Most stable but limited yield.

2. Yen Insurance Policy
Cigna or Fubon life savings insurance, with guaranteed interest rates of 2-3%, holding medium term (3-5 years), with protection features.

3. Yen ETFs (e.g., 00675U, 00703)
YuanDa 00675U tracks the yen index, with an annual management fee of 0.4%. Can buy fractional shares via broker apps, suitable for dollar-cost averaging.

4. Yen Currency Pair Trading
Trade USD/JPY or EUR/JPY on forex platforms, with long and short options, 24-hour trading, requiring minimal capital. Suitable for capturing exchange rate movements but with higher risk.

Summary

The yen has evolved from a travel currency to an asset class. By following the two principles of “gradual exchange + not sitting idle after exchange,” you can benefit from the NT$ depreciation, enjoy cost-effective travel, and gain multiple protections during global market turbulence. Beginners can start with online exchange via Taiwan Bank or foreign currency ATMs, then allocate into fixed deposits, ETFs, or swing trading as needed to maximize the dual value of yen.