Yen investment is booming, with four currency exchange methods having significantly different costs

By 2025, the NT dollar to Japanese Yen has reached 4.85, tourism in Japan is rebounding, and with the Yen’s emerging role as a safe-haven asset, more and more people are paying attention to the question of “how to exchange Yen most cost-effectively.” But did you know? Just choosing different currency exchange channels can cost over 2,000 NT dollars more.

Why is the Yen worth paying attention to?

When it comes to foreign currency investments, many people habitually think of the US dollar, but the Yen actually has unique value.

Travel and Consumption: Popular destinations like Tokyo, Osaka, and Hokkaido still rely heavily on cash (credit card penetration is only 60%). Additionally, demand for purchasing Japanese cosmetics, clothing, and anime merchandise is strong, requiring many to pay directly in Yen.

Safe-Haven Asset Properties: The Yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). During market turbulence, funds tend to flow into safe assets. For example, during the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in one week, successfully buffering a 10% stock market decline. For Taiwanese investors, holding Yen can hedge against Taiwan stock risks.

Arbitrage Opportunities: Japan maintains ultra-low interest rates (only 0.5%), creating a low-cost financing environment. Many professional investors borrow Yen at low interest to buy higher-yield USD (the USD-JPY interest rate spread is up to 4%), then close positions when risks rise, buying back Yen to profit from exchange rate differences.

Compared to the Australian dollar, which has higher interest rates but more volatility, Yen’s stability and safe-haven characteristics make it more suitable for conservative investors.

4 Ways to Exchange Currency, with Huge Cost Differences

Many think exchanging Yen is as simple as going to a bank counter, but the exchange rate differences among channels can eat up several thousand NT dollars. Here, using 50,000 NT dollars as an example, analyze each method.

First: Cash exchange at bank or airport counter (highest cost)

Carry NT cash to a bank or airport counter to buy Yen in cash. Banks use the “cash selling rate,” usually 1-2% worse than the spot rate, plus possible service fees, making this the most expensive among the four methods.

For example, Taiwan Bank’s rate on December 10, 2025, was about 0.2060 NT$/Yen (1 NT$ = 4.85 Yen), but E.SUN Bank’s cash selling rate was 0.2058, with an additional 100 NT$ fee per transaction. Exchanging 50,000 NT$ could lose about 1,500-2,000 NT$.

Process: Bring ID + passport to a bank branch or airport counter, fill out an application, and receive cash on the spot.

Suitable for: People unfamiliar with online operations or needing small amounts urgently (e.g., discovering insufficient cash at the airport).

Second: Online currency exchange to deposit account, with withdrawal fees

Use bank app or online banking to convert NT$ to Yen at the “spot sell rate,” which is about 1% better than cash selling rate. If cash is needed, withdraw at a branch or via foreign currency ATM, but withdrawal incurs fees (around 100 NT$ or more).

For example, after online exchange via E.SUN Bank app, Yen can be held in a foreign currency account at a better rate, but withdrawing cash at a branch still costs 5-100 NT$ per transaction. If only holding Yen in the account, you can also transfer to fixed deposits earning 1.5-1.8% annual interest.

Exchanging 50,000 NT$ might cost 500-1,000 NT$, but if you don’t withdraw cash, you save on fees.

Process: Open a foreign currency account → perform online exchange → if needed, withdraw cash at branch or ATM.

Suitable for: Those experienced in forex investment planning to hold Yen long-term.

Third: Online reservation for currency exchange, airport pickup (best value)

No need to open a foreign currency account in advance. Simply reserve online via bank website. Taiwan Bank’s “Easy Purchase” online exchange has no service fee (pay with Taiwan Pay, only 10 NT$), with a 0.5% better rate. After reservation, you can pick up at 14 Taiwan Bank branches at Taoyuan Airport (including 2 open 24 hours), very convenient.

For 50,000 NT$, estimated loss is only 300-800 NT$, making it the most cost-effective pre-trip option. The only downside is needing to book 1-3 days in advance, with pickup limited to banking hours.

Process: Log in to Taiwan Bank or Mega Bank website → fill in currency, amount, pickup branch → complete transfer → bring ID + transaction notice to pick up in person.

Suitable for: Travelers with a planned schedule who know their departure date in advance.

Fourth: 24-hour foreign currency ATM, most flexible but limited points

Use a chip-enabled debit card at bank foreign currency ATMs to withdraw Yen cash, operational 24/7. E.SUN Bank’s foreign currency ATMs allow NT$ account holders to withdraw Yen with a daily limit of 150,000 NT$, no exchange fee, and a cross-bank fee of only 5 NT$.

There are about 200 such ATMs nationwide, but locations are limited, and denominations are fixed (1,000, 5,000, 10,000 Yen). During peak times, cash may be insufficient. Exchanging 50,000 NT$ could lose about 800-1,200 NT$.

Process: Find a chip card-enabled ATM → select Yen → input amount → receive cash immediately.

Suitable for: Busy professionals who don’t have time to visit banks or need Yen on short notice.

Current Exchange Rate Trend Analysis

As of December 10, 2025, NT$ to Yen at 4.85 has appreciated 8.7% from the start of the year at 4.46, offering good returns for currency exchangers. In the second half of the year, Taiwan’s forex demand grew by 25%, mainly driven by tourism recovery and increased hedging by investors.

Short-term fluctuations: The US entering a rate cut cycle supports the Yen. Recently, BOJ Governor Ueda Kazuo made hawkish comments, with market expectations of a rate hike to 0.75% on December 19 (a 30-year high), with Japanese bond yields rising to 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to 154.58, likely to fluctuate around 155 in the short term, but medium to long-term forecasts suggest it will stay below 150.

Investment advice: Exchanging Yen now is advantageous, but consider phased entry. A single large exchange risks short-term volatility of 2-5% when closing arbitrage trades. It’s better to buy in 3-5 installments, averaging costs, while monitoring the US-Japan interest spread and geopolitical developments.

Compared to the high volatility of AUD to NT$, Yen’s stability makes it more suitable for risk-averse long-term investors.

What to do after exchanging Yen?

Simply exchanging Yen isn’t enough; idle funds should be put to work.

Yen fixed deposit: The safest choice. E.SUN Bank, Taiwan Bank, and others offer foreign currency accounts with a minimum of 10,000 Yen, earning 1.5-1.8% annual interest. Suitable for funds not needed within a year.

Yen insurance policies: Medium-term holding. Cathay and Fubon Life offer Yen savings insurance with guaranteed rates of 2-3%, suitable for 3-5 year investments.

Yen ETFs: Growth-oriented allocation. Yuanta 00675U tracks Yen indices, can be bought as fractional shares via broker apps, suitable for regular investment, with only 0.4% annual management fee.

Forex swing trading: Advanced option. Trade USD/JPY or EUR/JPY directly on forex platforms, with advantages of two-way trading, 24-hour operation, and leverage with small capital. However, higher volatility risk requires setting stop-loss orders.

Practical Tips

Large exchanges (over 100,000 NT$): May require declaration of source of funds; banks will inquire about the purpose.

Under 20 years old: Need parental accompaniment and signed consent.

Foreign currency ATM limits: After October 2025, most banks’ daily limits are reduced to 100,000-150,000 NT$, so plan ahead or split withdrawals.

Peak period risks: ATMs at airports and tourist spots often run out of cash during peak seasons. Prepare at least a week in advance for safety.

Summary

The Yen is no longer just for travel pocket money; it’s also an asset with hedging and income features. Whether for travel or asset allocation, the key is “phased exchange and value-added after exchange.”

For beginners, start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM” — simple and cost-effective. Then, based on your capital scale and timeline, gradually move into fixed deposits, ETFs, or swing trading. This way, you not only save on travel costs but also add a layer of protection amid global market fluctuations.