Is it really cost-effective to exchange Japanese Yen now? How to exchange 50,000 TWD in the most cost-efficient way

In December 2025, the NT dollar to Japanese Yen exchange rate reached 4.85. This figure has become a hot topic for those planning to travel to Japan or diversify their foreign currency holdings. But the real question isn’t “Should I exchange now?”—it’s “How can I exchange without losing value to exchange rate spreads?”

We observe that many people’s understanding of exchanging Yen still harks back to the “go to the bank counter” era, unaware that simply choosing different currency exchange channels can make a difference of NT$500 to NT$2,000 on a NT$50,000 transaction. This article will analyze the four most common ways to exchange Yen in Taiwan, based on actual data and the latest December 2025 rates.

Why is it worth exchanging Yen? Not just for travel

When it comes to foreign currency exchange, Yen always ranks high. The reasons go beyond “everyone loves Japan.”

Travel and daily life: Japanese stores still have a cash usage rate of about 40% (credit card penetration around 60%), indicating cash remains necessary. Whether shopping in Tokyo, skiing in Hokkaido, or vacationing in Okinawa, preparing cash in Yen is a prudent move. Additionally, demand from proxy shopping, overseas online shopping, studying abroad, and part-time work continues to boost exchange volume.

From an investment perspective: Yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week, successfully buffering stock market declines. For Taiwanese investors, holding some Yen can hedge against Taiwan stock risks. Especially under the current NT dollar depreciation pressure, exchanging Yen offers both “safety assets” and “FX gains.”

According to central bank data, Taiwan’s demand for Yen in the second half of 2025 increased by 25% compared to the same period last year, with travel recovery and hedging each accounting for half.

Four ways to exchange Yen, with vastly different costs

There are four main channels to exchange Yen. Based on the latest December 2025 rates and real costs, here’s a breakdown:

Method 1: Bank counter cash exchange—most traditional but most expensive

Bring NT dollars directly to a bank or airport counter to buy Yen cash. Simple to operate, but using the “cash selling rate” (1-2% worse than the spot rate), plus possible service fees, makes this the most costly among the four options.

For example, Taiwan Bank’s cash selling rate on December 10 was 0.2060 (meaning NT$1 = 4.85 Yen). Exchanging NT$50,000 would result in an actual loss of about NT$1,500–2,000.

Comparison of major banks’ cash selling rates (December 10):

Suitable for: Urgent airport needs, amounts under NT$5,000, or users unfamiliar with online transactions.

Method 2: Online FX transfer + foreign currency account withdrawal—moderate cost, high flexibility

Use banking apps or online banking to convert NT$ into Yen and deposit into a foreign currency account, enjoying an “at spot sell rate” (about 1% better than cash rate). If cash Yen is needed, withdraw via ATM or counter from the foreign currency account, but this incurs FX spread fees (from NT$100).

NT$50,000 via this method might cost NT$500–1,000 in losses. The key advantage is the ability to buy in installments at lower points (e.g., when NT$ to Yen drops below 4.80), averaging the cost.

Ideal for experienced users with foreign currency accounts, who also want to set Yen fixed deposits or ETFs. Current Yen fixed deposit annual interest rates are about 1.5–1.8%, providing stable passive income even with small amounts.

Method 3: Online FX settlement + airport branch pickup—cheapest travel option

Taiwan Bank’s “Easy FX” online settlement service and similar offerings from Mega Bank allow you to complete currency exchange without a foreign currency account. Just fill in currency, amount, and pickup branch on the website, then pick up the cash at the counter. Key benefits: about 0.5% better exchange rate, often no service fee.

NT$50,000 exchange might only cost NT$300–800. Highly recommended for pre-trip preparation. Especially at Taoyuan Airport, with 14 branches and 2 24-hour outlets, you can pre-book 1–3 days in advance and pick up Yen cash on departure day.

Drawbacks: Requires prior appointment, pickup limited to banking hours (except 24-hour outlets), branch changes not possible.

Method 4: Foreign currency ATM withdrawal—fastest but limited

Use chip-enabled bank cards at foreign currency ATMs to withdraw Yen, supporting 24-hour and interbank transactions (interbank fee NT$5). Deducted directly from NT$ account, no FX fee, but costs estimated NT$800–1,200 in losses.

Major limitation: Less than 200 foreign currency ATMs nationwide, fixed denominations (only 1,000/5,000/10,000 Yen), cash often sold out during peak times. Some banks like SinoPac offer this service, with daily withdrawal limits around NT$150,000 equivalent.

Suitable for urgent needs or busy professionals who can’t visit the bank.

Cost overview of the four methods

Our recommendation: For budgets NT$50,000–NT$200,000, the most cost-effective combo is “Online FX settlement + airport branch pickup” or “Emergency ATM withdrawal + online FX.”

Is it worth exchanging Yen now? Yes, under certain conditions

Exchange rate trend analysis

In early 2025, NT$ to Yen was 4.46. Now it’s risen to 4.85, an appreciation of about 8.7% for the year. This means even if you exchange Yen now, you’ve already gained FX profit.

Underlying logic: The Bank of Japan (BOJ) is expected to raise interest rates. Governor Ueda’s hawkish comments have increased market expectations of a rate hike to 0.75% by December 19 (a 30-year high). Meanwhile, the US is entering a rate cut cycle, narrowing the US-Japan interest rate gap, but Yen’s safe-haven appeal has increased.

USD/JPY has fallen from a high of 160 to around 154.58. Short-term, it may oscillate near 155, but medium to long-term, it’s expected to move below 150.

Investment advice

For travel, exchanging Yen now is fully worthwhile—just use the right method to avoid losses.

For hedging, Yen does have value, but short-term volatility could cause a 2–5% fluctuation during arbitrage unwinding. It’s recommended to buy in installments, e.g., monthly or quarterly, rather than all at once. This helps average costs and mitigate single-point risks.

After getting Yen? Don’t let it sit idle

Once you’ve exchanged Yen, the key is “don’t just leave it there.” The following four options are suitable for small-scale beginners:

Yen fixed deposit—most stable
Open a foreign currency account, deposit Yen into a fixed deposit with an annual interest rate of 1.5–1.8%, starting from 10,000 Yen. E.SUN Bank and Taiwan Bank support online account opening and deposits. Stable interest, suitable for risk-averse investors.

Yen insurance policy—medium-term holding
Cathay and Fubon life offer Yen savings insurance with guaranteed 2–3% interest, lock-in periods of 3–6 years, combining protection and returns. Suitable for users with medium-term financial plans.

Yen ETFs—growth-oriented
Yuanta 00675U tracks Yen indices, can be bought as fractional shares via brokerage apps, with management fees of 0.4% per year. Suitable for dollar-cost averaging and long-term Yen appreciation outlook.

Forex trading in Yen—advanced play
Trade USD/JPY or EUR/JPY on forex platforms to capture exchange rate fluctuations. Pros: long/short positions, 24-hour trading, small capital needed. Cons: highest risk, requires trading experience. Recommended for experienced traders.

Yen’s volatility exists—rate hikes are positive, but global arbitrage unwinding or geopolitical risks (Taiwan Strait, Middle East) could suppress it. Diversify with fixed deposits or ETFs; for forex trading, strict risk control is essential.

Quick FAQs

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

Cash rate is the bank’s quote for physical banknotes, usually 1–2% worse than the spot rate, but allows immediate delivery. Spot rate is the market rate for settlement within two business days, closer to international prices, but involves T+2 settlement. Generally, spot is 1–2% cheaper but cannot be used for immediate cash.

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

Using Taiwan Bank’s December 10 cash selling rate of 0.2060, NT$10,000 converts to about 48,500 Yen. Using the spot rate 0.2065, it’s about 48,400 Yen—difference of roughly 200 Yen (NT$40).

Q: What do I need to bring for counter currency exchange?

For locals: ID card + passport; foreigners: passport + residence permit; companies: business registration; online booking: transaction notice. Under 20 years old need parent’s consent; amounts over NT$100,000 may require source of funds declaration.

Q: What’s the limit for foreign currency ATM withdrawals?

As of 2025, varies by bank. CTBC: NT$120,000 equivalent per day; Taishin: NT$150,000; E.SUN: NT$150,000 (including card transactions). It’s advisable to split withdrawals or use your bank’s card to avoid cross-bank fees. During peak times (airports, year-end), cash may run out—plan ahead.

Summary: Master the “batch + multiple channels” approach

Yen is no longer just for travel pocket money but also a hedging and investment asset class.

For travel: prioritize “online FX settlement + airport pickup” to save NT$800 in fees, supplemented by ATM cash for emergencies.
For hedging: buy in installments, open foreign currency accounts for fixed deposits or ETFs, to generate passive income from idle funds.

Beginners can start with online FX, while advanced users may consider fixed deposits + ETFs. As long as you monitor exchange trends, choose the right channels, and don’t leave your Yen idle after exchange, you’ll have an extra layer of protection in turbulent markets and enjoy more cost-effective trips.