JPY exchange guide to avoid pitfalls: Four withdrawal methods have cost differences of over 2000 yuan. Did you choose the right one?

The NT dollar against the Japanese Yen has reached 4.85, hitting a new high for the year. But did you know? Using the same 50,000 NT dollars and choosing the wrong method could cost you an extra 2,000 yuan.

As travel to Japan warms up again, more and more people are exchanging for Yen. However, most just naively queue at bank counters—little do they know that online foreign exchange, foreign currency ATMs, and online currency exchange each have their own nuances, with vastly different costs.

We’ve compiled the latest currency exchange strategies to help you instantly understand how to choose the most cost-effective foreign currency withdrawal plan.

Is now a good time to exchange for Yen?

On December 10, 2025, the NT dollar against the Yen reached 4.85. Compared to 4.46 at the start of the year, it has appreciated by about 8.7%.

Does that seem like much? But in other words, your NT dollars are depreciating, and the Yen is relatively holding its value. Plus, the Bank of Japan is about to raise interest rates (expected to reach 0.75% on December 19, a 30-year high), making Yen one of the world’s top three safe-haven currencies, with continued appeal.

According to the latest data, Taiwan’s foreign exchange demand has grown by 25% in the second half of the year. The main drivers are: first, the summer travel peak; second, savvy investors starting to allocate hedging assets. Exchanging Yen is no longer just for “pocket money for travel,” but a strategic option to hedge Taiwan stock market volatility and protect assets.

5 ways to exchange Yen: who are the winners?

Many think all banks offer similar rates, but in reality— for the same 1 Yen, different banks quote prices differing by 0.001 NT dollars. Multiplied by tens of thousands of Yen, that’s money lost on your lunch.

Plan 1: In-person cash exchange—most traditional, but most expensive

Bring cash NT dollars directly to a bank or airport counter to exchange for Yen cash. This is most people’s instinctive choice, but also the “cost killer.”

Why is it expensive? Banks quote “cash selling rates,” which are 1-2% worse than the market spot rate. For example, Taiwan Bank’s quote at 9:18 am on December 10, 2025, was 0.2060 NT dollars per Yen (1 NT dollar = 4.85 Yen), but online rates already reached 4.87.

Some banks also charge handling fees—E.SUN Bank charges 100 NT dollars per transaction, Cathay United Bank 200 NT dollars. All added up, exchanging 50,000 NT dollars could lose you 1,500-2,000 NT dollars.

Suitable for: Urgent needs, amounts under 5,000 NT dollars, travelers who dislike hassle.

Plan 2: Online currency exchange into account—flexible but with hidden costs

Use banking apps or online banking to transfer NT dollars into Yen and deposit into a foreign currency account. The exchange rate here uses “spot sell,” about 1% better than cash rates, saving some.

But here’s the trap: if you want to withdraw cash, you’ll pay another fee (around 100 NT dollars), and banks will charge double fees between “spot rate” and “cash rate.”

Actual cost: exchanging 50,000 NT dollars saves 300-500 NT dollars, but if you withdraw cash later, another 100-200 NT dollars are added. Suitable for “holding for investment” or “regular remittance,” but not necessarily for cash needs.

Suitable for: Foreign currency investors, those planning to buy Yen deposits (annual interest 1.5-1.8%) or ETFs.

Plan 3: Online currency exchange + designated branch pickup—favorite among travelers

This is the smartest approach in recent years: fill in amount, date, and pickup branch on the bank’s website, complete online payment, then bring ID and transaction notice to the designated branch to pick up cash—no need for a foreign currency account, the rate is close to spot, and often no handling fee.

Taiwan Bank’s “Easy Purchase” service is especially generous—pay with Taiwan Pay for just 10 NT dollars, with a 0.5% favorable rate. The best part is Taoyuan Airport has 14 Taiwan Bank branches (2 open 24 hours), allowing pickup on the day of departure or even an hour before, with no travel delay.

This saves you 300-800 NT dollars and allows you to monitor exchange rate trends for phased reservations.

Suitable for: Planned travelers, businesspeople who want to withdraw at the airport.

Plan 4: Foreign currency ATM withdrawal—24/7 access, but choose locations carefully

Use a chip-enabled bank card at foreign currency ATMs to withdraw Yen cash, open 24 hours. Deducts only 5 NT dollars cross-bank fee from your NT account (cheaper with your own bank card), no hassle.

SinoPac Bank’s foreign currency ATMs allow withdrawal of up to 150,000 NT dollars equivalent Yen per day; CTBC Bank allows 120,000 NT dollars. No additional currency exchange fee.

But there’s a big issue: There are only about 200 foreign currency ATMs nationwide, and during peak times (airports, stations), cash often runs out. Someone once had to run to 3 ATMs at midnight to succeed. Plus, denominations are fixed (only 1,000, 5,000, 10,000 Yen), so flexibility is limited.

Cost savings of 800-1,200 NT dollars, but with risks of “timing and availability.”

Suitable for: Emergency needs, busy professionals who don’t have time to visit banks.

Practical cost comparison: exchanging 50,000 NT dollars for Yen

From the table, online currency exchange is the smartest choice—it offers favorable rates, often waives fees, and the convenience of airport pickup is unmatched.

But if you insist on “24/7 access,” foreign currency ATMs, though not the cheapest, are the most flexible, especially suitable for last-minute travelers.

Should you exchange now or wait? Will the rate fall?

Many wonder: “If I exchange now at 4.85, will it drop to 4.80 tomorrow and regret?”

Based on forex market analysis, in the short term, the Yen is supported by the Fed’s rate cut cycle and the Bank of Japan’s rate hikes. USD/JPY is expected to fluctuate between 154-155, corresponding to about 4.82-4.87 NT dollars per Yen. In other words, significant downside is limited.

But don’t exchange everything at once. Our advice:

• First batch (immediately): Use online currency exchange to lock in 50% of your needs, reserve airport pickup
• Second batch (3-5 days later): Observe the rate; if it drops below 4.82, use ATMs or online exchange to cover the remaining 50%
• Third batch (before departure): For urgent small amounts, use ATMs

This way, you avoid being “stuck at a high point all at once.”

After exchanging Yen, what’s next? Don’t let your money “sit idle”

After exchanging for Yen cash, many just keep it in their wallet waiting to travel. But even if not used in the short term, you can make Yen “work for you.”

Yen fixed deposit (annual interest 1.5-1.8%): deposit into E.SUN or Taiwan Bank foreign currency accounts, starting from 10,000 Yen, much better than just letting it sit.

Yen ETFs (e.g., Yuanta 00675U): track Yen index, can trade fractional shares, participate in exchange rate appreciation, and diversify risk. Management fee only 0.4% annually.

Yen insurance policies: Cathay and Fubon offer Yen savings insurance, with guaranteed interest rates of 2-3%, suitable for medium-term holding (3-5 years).

Forex swing trading (advanced): if sensitive to rate fluctuations, trade USD/JPY or EUR/JPY on forex platforms, with long and short positions, 24-hour markets, using small capital.

Which to choose? Depends on your timing and risk appetite. Less frequent travelers? Fixed deposits are safest. Want to profit from exchange rate differences? ETFs or forex trading. Want peace of mind? Insurance policies are the safest.

Quick FAQs

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

Cash rate is the rate banks quote for physical cash (bills), usually worse; spot rate is the foreign exchange market’s T+2 settlement rate, more favorable. Simply put, cash is more expensive by 1-2%, digital settlement is cheaper.

Q: How much Yen can 10,000 NT dollars buy?

Based on Taiwan Bank’s December 10, 2025, cash selling rate of 4.85, 10,000 NT dollars ≈ 48,500 Yen. Using the spot rate (~4.87), about 48,700 Yen, a difference of 200 Yen (~40 NT dollars).

Q: Are there limits on foreign currency ATM withdrawals?

Yes. Different banks have different limits, generally around 100,000-150,000 NT dollars per day. CTBC allows 120,000, Taishin 150,000, E.SUN 150,000 (including credit card). It’s advisable to split withdrawals or use your own bank card to reduce cross-bank fees.

Q: What do I need to bring to withdraw cash?

ID + passport (for locals) or passport + residence permit (for foreigners). If pre-booked online, also bring transaction notice. Minors under 20 need a parent present.

Final words

Yen is no longer just “travel pocket money,” but an asset with hedging and investment value. Amid NT dollar depreciation pressure, Japan’s rate hikes, and global market turbulence, appropriately allocating Yen is a smart financial decision.

The core principles are twofold:

1. Phased currency exchange, don’t convert everything at once—use online exchange to lock in a base amount, then top up gradually
2. After exchanging, don’t just leave it idle—invest in fixed deposits, ETFs, or other instruments, letting Yen help you recover the fees

Whether you’re planning a trip to Japan next year or want to hedge your assets amid volatility, following these principles allows you to minimize costs and choose the smartest foreign currency withdrawal method, capturing Yen appreciation opportunities. Travel affordably, and also add an extra layer of protection for your assets.