Japanese Yen to New Taiwan Dollar 4.85: Is now the most cost-effective time to exchange? An article comparing currency exchange costs

The NT dollar to Japanese Yen has risen to 4.85, the highest point this year. For those planning to travel abroad or hedge with JPY, everyone is asking the same question now: Is it worth exchanging now?

Actually, rather than obsessing over exchange rates, it’s better to understand exchange costs first. For the same NT$50,000 exchanged, choosing the wrong channel could cost you an extra NT$1,500, while the right method might only cost NT$300. That’s the difference.

Why is it worth exchanging to JPY?

JPY is not just pocket money for travel. As one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), it can hedge risks during Taiwan stock market volatility. During the Russia-Ukraine conflict in 2022, JPY appreciated 8% in a week, while Taiwan stocks fell 10%—that’s the power of hedging.

Plus, the Bank of Japan is on the verge of raising interest rates. Governor Ueda recently made hawkish comments, pushing market expectations of rate hikes to 80%. The December 19 meeting is expected to raise rates by 0.25 basis points to 0.75% (a 30-year high), with Japanese government bond yields hitting a 17-year high of 1.93%. USD/JPY has fallen from 160 at the start of the year to 154.58; it might rebound to 155 in the short term, but in the medium to long term, it could stay below 150—meaning there’s still room for JPY appreciation.

Additionally, NT$ to JPY has risen from 4.46 at the start of the year to 4.85, a cumulative appreciation of 8.7%, which already yields significant gains for investors.

Exchanging NT$50,000 to JPY: Cost Comparison

No need for much talk—let’s look at the actual data. Using NT$50,000 as an example:

1. In-person cash exchange — Most expensive
Go directly to a bank or airport counter to exchange cash. Using the “cash selling rate,” which is 1-2% worse than the spot rate. Taiwan Bank’s rate as of December 10, 2025, is 1 NT$ = 4.85 JPY, with a cash selling rate of 0.2060 NT$/JPY. Result? Loss of NT$1,500–2,000.

• E.Sun, Cathay United Bank also charge NT$100–200 per transaction, making it even more costly.
• Only suitable for urgent airport needs or if you don’t want to think about it.

2. Online currency exchange — Moderate
Use bank apps or online banking to transfer NT$ into JPY in a foreign currency account, using the “spot selling rate” (about 1% discount). If you withdraw cash, there’s an additional withdrawal fee starting at NT$100. Loss of NT$500–1,000.

• Advantage: can operate 24/7 in batches, waiting for lower rates (e.g., when NT$ to JPY drops below 4.80).
• Suitable for those experienced in forex or wanting to hold JPY deposits long-term.

3. Online currency purchase — Most cost-effective (recommended)
Fill in the amount, currency, branch, and date on the bank’s official website, then pick up the cash at the counter. Taiwan Bank’s “Easy Purchase” online currency exchange is fee-free (using Taiwan Pay costs only NT$10), with a favorable rate discount of 0.5%. Loss of NT$300–800.

• Main advantage: can pre-book and pick up at Taoyuan Airport’s 14 Taiwan Bank locations (including 2 open 24 hours).
• Book 1–3 days before departure, pick up JPY notes at the airport, no need to visit the bank physically. Lowest cost.

4. Foreign currency ATMs — Flexible but risky
Use a chip-enabled debit card to withdraw JPY cash from bank ATMs, available 24/7. Only NT$5 cross-bank fee per withdrawal from your NT$ account. Loss of NT$800–1,200.

• But there are only about 200 foreign currency ATMs nationwide, with fixed denominations (1,000, 5,000, 10,000 JPY), which can sell out during peak times.
• Suitable for those who can’t visit a branch or need emergency cash, but don’t wait until the last minute.

Conclusion: For travel, “online currency purchase + airport pickup” is the most cost-effective. For investment, “online currency exchange in batches.” For emergencies, “foreign currency ATM.”

Is it worth exchanging at 4.85 JPY/NT$ now?

Yes, but in batches.

The reason is simple: JPY will still fluctuate 2–5% in the short term. Global arbitrage unwinding, geopolitical conflicts (Taiwan Strait/Middle East) may temporarily depress the yen. Instead of exchanging all at once, it’s better to do it in 3–4 installments to average the cost.

Long-term, the BOJ’s rate hikes are positive. As a safe-haven currency, JPY can protect assets during Taiwan stock fluctuations. Plus, with JGB yields at 1.93% (17-year high), buying JPY deposits offers 1.5–1.8% annual interest, far better than NT$’s 0.5%.

Key point: After exchanging to JPY, don’t let your money sit idle.

What to do after exchanging JPY? 4 ways to grow your assets

1. JPY fixed deposit — Conservative
   Open a foreign currency account with E.Sun or Taiwan Bank, minimum NT$10,000 equivalent, annual interest 1.5–1.8%. Zero risk, suitable for conservative investors.

2. JPY insurance policy — Medium-term hold
   Buy savings insurance from Cathay or Fubon Life, with guaranteed interest rates of 2–3%. Lock in returns but with a maturity period.

3. JPY ETFs — Growth-oriented
   Yuanta 00675U tracks the JPY index, can be bought as fractional shares via broker apps, with an annual management fee of 0.4%. Suitable for dollar-cost averaging and diversification.

4. Forex swing trading — High risk, high reward
   Trade USD/JPY or EUR/JPY on forex platforms, capturing exchange rate movements directly. 24-hour trading, both long and short, suitable for experienced traders.

Which to choose? For conservative, fixed deposits; for growth, ETFs or forex trading. While JPY is a hedge, it also fluctuates bidirectionally—rising during global conflicts and falling when market risks subside.

Quick FAQs

Q: What’s the difference between cash rate and spot rate?
Cash rate is the bank’s rate for physical cash, delivered immediately, but 1–2% worse than the spot rate. Spot rate is used for electronic transfers, settled in 2 business days (T+2), more favorable. For cost savings, use the spot rate.

Q: Daily withdrawal limit for foreign currency ATMs?
Varies by bank. CTBC: NT$120,000/day; Taishin: NT$150,000/day; E.Sun: NT$150,000/day (including credit card). Use your own bank card to avoid cross-bank fees.

Q: Large exchange amounts (over NT$100,000)?
Bring ID and passport. Large amounts may require source of funds declaration, but it’s straightforward.

In summary, at JPY/NT$ 4.85, it’s not about “whether to exchange,” but “how to exchange most cheaply.” Using the right method can save NT$1,000–1,700 compared to blind in-person exchange.