Yen exchange tips: Comparing the costs of Taiwan's 4 major channels, learn how to save the most at once

In December 2025, the exchange rate of the New Taiwan Dollar (NTD) against the Japanese Yen (JPY) surged to 4.85, an 8.7% increase from 4.46 at the beginning of the year. This wave of appreciation has boosted travel to Japan and investment in Yen assets, but do you really know how to exchange Yen without losing out? We’ve calculated four different channels—over-the-counter, online, ATM, and others—to help you save NT$1,500.

Why Should You Pay Attention to Yen Allocation Now?

When it comes to foreign currency investments, Taiwanese people are most familiar with the US Dollar. However, the practical value of the Yen is often underestimated.

Everyday Life: Traveling to Japan, shopping on behalf of others, studying abroad—all require Yen. Cash usage in Japan remains high (credit card penetration is only 60%), and most stores in Tokyo, Osaka, and Hokkaido only accept cash.

Financial Perspective: The Yen is one of the three major safe-haven currencies globally (alongside USD and Swiss Franc). During market turbulence, funds flow into Yen to preserve value. During the Russia-Ukraine conflict in 2022, the Yen appreciated by 8% in a week, successfully offsetting stock market declines. For Taiwanese investors, in an era of increased volatility in Taiwan stocks, allocating some Yen assets adds an extra layer of protection.

Additionally, the Bank of Japan’s recent hawkish rate hike expectations have heated up (Ueda Kazuo has signaled a rate hike, expected to raise to 0.75% on December 19—the highest in 30 years), and Japanese government bond yields hit a 17-year high of 1.93%. These factors favor the Yen’s medium- to long-term performance. In contrast, the Hong Kong dollar’s exchange rate is constrained by the linked exchange rate system, limiting volatility, and the potential return from converting HKD to TWD is less flexible than Yen.

Four Ways for Taiwanese to Exchange Yen: Which Is the Most Cost-Effective?

Many think exchanging Yen is just a matter of going to the bank, but the exchange rate difference can be 1-2%, resulting in a NT$1,000 difference when exchanging NT$50,000. Below, we compare each method based on actual costs.

Option 1: Foreign Currency ATM—Fast but Scarce Locations

Use a chip-enabled financial card to withdraw Yen cash from a foreign currency ATM at a bank, available 24/7, with only NT$5 fee for interbank transactions. E.SUN Bank’s foreign currency ATM has a daily limit of NT$150,000 and no currency exchange fee.

Advantages: Immediate cash, no waiting, suitable for urgent needs.
Disadvantages: Only about 200 ATMs nationwide, fixed denominations (1,000/5,000/10,000 Yen), cash often sold out during peak times.
Estimated Cost: NT$50,000 may lose NT$800–1,200.
Ideal for: Busy workers who need quick cash and don’t have time to visit banks.

Option 2: Online Currency Exchange + Airport Pickup—Best for Travelers

No need for a foreign currency account. Exchange currency online via bank’s website, select pickup branch and date, then pick up in person with ID and transaction notification. Taiwan Bank’s “Easy Purchase” online exchange is fee-free (pay NT$10 via Taiwan Pay), with about 0.5% better rates.

The key advantage is the ability to reserve pickup at airport branches—14 Taiwan Bank locations at Taoyuan Airport, including 2 open 24 hours. On departure day, pick up directly at the airport, saving the hassle of visiting the bank beforehand.

Advantages: Better rates, often no fees, can choose airport pickup.
Disadvantages: Need to book 1-3 days in advance, pickup only during bank hours, branch location cannot be changed.
Estimated Cost: NT$50,000 may lose NT$300–800.
Ideal for: Travelers with firm plans and fixed departure dates who want to save the most money.

Option 3: Online Currency Exchange + Foreign Currency Account—Advanced for Investors

Use bank app or online banking to convert TWD to Yen, deposit into a foreign currency account, and sell at the spot rate (about 1% better than cash rate). If later needing cash, withdraw via ATM or over-the-counter, with a fee starting from NT$100.

After currency exchange via E.SUN Bank app, you can observe exchange rate trends in batches, entering at low points (e.g., when TWD/JPY drops below 4.80) to average costs. Post-exchange, you can also invest in Yen deposits (annual interest rate around 1.5–1.8%) or Yen ETFs (like 00675U) to generate passive income.

Advantages: 24/7 operation, ability to buy in installments, relatively favorable rates.
Disadvantages: Need to open a foreign currency account first, withdrawal incurs additional fees, basic understanding of forex required.
Estimated Cost: NT$50,000 may lose NT$500–1,000.
Ideal for: Investors experienced in forex, planning long-term Yen asset allocation.

Option 4: Over-the-Counter Cash Exchange—Most Traditional but Costliest

Bring NT$ cash to a bank branch or airport counter to exchange for Yen cash. Use the “cash selling rate” (1-2% worse than spot rate). For example, Taiwan Bank’s December 10, 2025 rate is about NT$0.2060 per Yen (NT$1 = 4.85 Yen). Some banks also charge NT$100–200 handling fee.

Advantages: Easiest operation, full denomination options, on-site assistance.
Disadvantages: Worst exchange rates, limited hours (weekday 9:00–15:30), higher fees.
Estimated Cost: NT$50,000 may lose NT$1,500–2,000.
Ideal for: Elderly, those unfamiliar with online banking, or for small urgent needs.

Comparison of Cash Selling Rates at Various Banks (2025.12.10)

Is It Worth Exchanging Yen Now?

Short-term: The Yen is fluctuating. The US is entering a rate cut cycle, but the Bank of Japan is signaling rate hikes. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58, likely to oscillate around 155 in the short term, but long-term forecasts suggest it could fall below 150.

Investment Perspective: Now is a good time to buy in stages. As a safe-haven currency, Yen is suitable for hedging Taiwan stock risks; but be cautious of 2-5% fluctuations caused by arbitrage unwinding. It’s recommended to buy in 3-5 installments during dips rather than all at once.

Travel Perspective: TWD/JPY has appreciated by 8.7%. Exchanging now is more cost-effective than at the start of the year. In the second half of the year, Taiwan’s currency exchange demand increased by 25%, driven by travel recovery and hedging needs.

How to Increase Yen Value After Exchange?

Once you have Yen, let your money work for you. Here are four options suitable for small-scale beginners:

1. Yen Fixed Deposit: The safest. E.SUN and Taiwan Bank offer foreign currency accounts, online deposits starting from 10,000 Yen, with annual interest rates of 1.5–1.8%.

2. Yen Insurance Policies: Medium-term holding. Cathay and Fubon Life offer savings insurance with guaranteed rates of 2–3%, suitable for those who prefer not to operate frequently.

3. Yen ETFs (like 00675U, 00703): Growth-oriented. Yuanta 00675U tracks Yen indices, can be bought as fractional shares via broker apps, with an annual management fee of 0.4%, suitable for dollar-cost averaging.

4. Forex Swing Trading: Advanced play. Trade USD/JPY or EUR/JPY directly via forex platforms, with long and short options, 24-hour trading, requiring minimal capital. However, it demands risk tolerance and technical analysis skills.

Common Forex Exchange Q&A

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

Cash rate is the buy/sell rate for physical bills/coins at banks, paid on the spot, but 1-2% worse than the spot rate. The spot rate is the foreign exchange market’s T+2 settlement rate, used for electronic transfers and foreign currency accounts, closer to international market prices. Simply put, cash is more expensive, transfers are cheaper.

Q: How much Yen do I get for NT$10,000?

Calculate as: Yen amount = NT$ amount × current rate. Using Taiwan Bank’s December 10, 2025 cash selling rate of 4.85, NT$10,000 ≈ 48,500 Yen. At the spot rate of 4.87, it’s about 48,700 Yen—difference of 200 Yen (~NT$40).

Q: What should I bring for over-the-counter exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit; companies: business registration documents. If booked online, also bring transaction notification. Under 20 years old need parental accompaniment; amounts over NT$100,000 may require source of funds declaration.

Q: What’s the limit for ATM withdrawals?

From October 2025, banks have adjusted limits. CTBC and other banks’ cards: NT$120,000 per day; Taishin Bank: NT$150,000; E.SUN Bank: NT$150,000 (including card spending). Digital accounts often have limits reduced to NT$100,000/day. It’s advisable to split withdrawals or use your bank’s card to avoid cross-bank fees.

Summary

Yen is no longer just for travel “pocket money,” but also an asset with hedging and appreciation potential. Whether for travel or investment, it’s worth serious attention.

For beginners, start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM” to save time and money. Experienced users can upgrade to online exchange + deposit/ETF strategies. The key is to follow the principles of “buy in stages, don’t leave your money idle after exchange,” minimizing costs and maximizing returns. This way, you can enjoy more cost-effective trips abroad and add a layer of protection during global market turbulence.