The Japanese Yen to New Taiwan Dollar has reached 4.85. Should I exchange now? Full disclosure of currency exchange costs

The NT$ to JPY exchange rate has risen to 4.85 this year, bringing back the enthusiasm for traveling abroad and JPY allocations. But the key question is: Is it now a good time to exchange? What method saves the most money?

We have summarized the four most common channels for exchanging JPY in Taiwan, using real rates to show you how to exchange without losing money to exchange rate spreads.

Why is it worth exchanging for JPY? Not just for travel, but also for risk hedging

Many people think exchanging JPY is just a preparatory step for traveling abroad, but in reality, the uses of JPY go far beyond that.

Travel, purchasing, studying abroad essentials
Cash usage in Japan remains high (credit card penetration is only 60%), whether shopping in Tokyo, skiing in Hokkaido, or vacationing in Okinawa, cash is still king. Plus, when buying Japanese cosmetics, anime merchandise, or purchasing via proxy, many stores and sellers only accept JPY directly.

A role in hedging assets
JPY is one of the world’s three major safe-haven currencies (alongside USD and CHF), because Japan’s economy is stable and debt structure sound. During global market turbulence or geopolitical tensions, funds often flow into JPY for safety. For example, during the Russia-Ukraine conflict in 2022, JPY appreciated 8% in a week, effectively buffering a 10% decline in the stock market. For Taiwanese investors, exchanging for JPY adds an extra layer of insurance against Taiwan stock market volatility.

Arbitrage and interest rate hike expectations
Japan maintains ultra-low interest rates (0.5%), making JPY a “borrowed currency” for investors. Many traders borrow low-interest JPY, convert to higher-yield USD (about 4.0% interest rate differential), and when risks rise, close positions to buy back JPY. Recently, the Bank of Japan Governor Ueda has signaled a hawkish stance, with market expectations of a rate hike to 0.75% in December (a 30-year high), which could trigger a new JPY appreciation cycle.

Is it a good time to exchange JPY now? Exchange rate analysis

Current exchange rate as of December 10, 2025
NT$ to JPY is about 4.85 (1 NT$ = 4.85 JPY), up about 8.7% from 4.46 at the start of the year. For Taiwanese currency exchangers, this yields a considerable gain. In the second half of the year, Taiwan’s foreign exchange demand grew by 25%, mainly driven by travel recovery and institutional hedging.

Recent trends and forecasts
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 the medium to long-term trend is expected to fall below 150. Japanese bond yields have hit a 17-year high of 1.93%, supported by the BOJ’s rate hike expectations.

What should investors do?
While JPY is a safe-haven, short-term risks include arbitrage unwinding, which could cause 2-5% volatility. It is recommended to stagger entries, avoid exchanging all at once, to minimize costs amid fluctuations.

Four methods to exchange JPY, understand costs and operations in one go

1. Bank counter exchange: the most traditional but most costly

Bring NT$ cash directly to a bank or airport counter to exchange for JPY cash. Simple operation, but using “cash selling rate” (about 1-2% worse than spot rate), results in higher overall costs.

For example, Taiwan Bank (2025/12/10):

• Cash selling rate: about 0.2060 NT$ per JPY (1 NT$ = 4.85 JPY)
• Estimated loss on 50,000 NT$: 1,500-2,000 NT$

Comparison of bank rates and fees

Suitable for: Travelers unfamiliar with online operations, needing small urgent exchanges (e.g., at the airport).

2. Foreign currency ATM: 24-hour flexibility

Use a chip-enabled debit card at foreign currency ATMs to withdraw JPY cash, available 24/7. Deducted directly from NT$ account, cross-bank fee only 5 NT$, no exchange fee.

Example: Fubon Bank foreign currency ATM

• Daily withdrawal limit: NT$150,000
• Denominations: fixed 1,000/5,000/10,000 JPY bills
• Estimated loss on 50,000 NT$: 800-1,200 NT$

Notes:

• Limited locations (~200 nationwide), may run out during peak times
• Fixed denominations, cannot choose specific amounts
• Cross-bank withdrawals may have bank limits

Suitable for: Readers with limited time, needing immediate cash, or those who prefer not to visit counters.

3. Online exchange + counter withdrawal: a balanced approach

Use bank app or online banking to convert NT$ into JPY and deposit into a foreign currency account (using spot rate, about 1% better than cash selling rate). If cash needed, go to counter or ATM to withdraw, but extra spread/handling fee applies (starting around NT$100).

Example: E.SUN Bank

• Spot rate more favorable
• Withdrawal fee: NT$100+
• Estimated loss on 50,000 NT$: 500-1,000 NT$

Features:

• 24/7 online operation, can buy in installments for average cost
• Suitable for observing exchange rates, entering in stages at low points
• After exchange, can transfer into fixed deposits or investments, avoiding idle funds

Suitable for: Those experienced in forex trading, using foreign currency accounts regularly, planning to invest in JPY deposits or ETFs.

4. Online currency exchange + airport pickup: best before travel

No need for a foreign currency account, just fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notice to pick up at the counter, with optional airport branch reservation.

Taiwan Bank “Easy Purchase” online exchange:

• Fee: free (pay via TaiwanPay, only NT$10)
• Exchange rate advantage: about 0.5% better
• Airport branches: 14 branches at Taoyuan Airport (2 open 24 hours)
• Estimated loss on 50,000 NT$: 300-800 NT$

Advantages:

• Better exchange rates, often no handling fee
• Can specify airport branch for pickup, ready for travel
• Most convenient for planned travelers

Disadvantages:

• Need to book in advance (1-3 days)
• Pickup time limited by bank hours
• Branchs cannot be changed on the spot

Suitable for: Well-planned travelers, those who want to pick up JPY directly at the airport.

Quick reference table for exchange methods, costs, and scenarios

Our advice: For budgets between NT$50,000 and NT$200,000, a combination of “online exchange + ATM” offers the best value—enjoying favorable rates and flexibility.

After exchanging JPY, don’t let your money sit idle

JPY is not just for travel; it can be redirected into stable or growth investments.

JPY fixed deposit (conservative)
E.SUN, Taiwan Bank offer foreign currency accounts starting from 10,000 JPY, with annual interest rates of 1.5-1.8%. Suitable for low-risk investors.

JPY insurance policies (medium-term hold)
Cathay, Fubon life insurance savings plans with guaranteed 2-3% interest, combining protection and returns.

JPY ETFs (growth-oriented)
Examples: Yuanta 00675U, 00703, tracking JPY indices. Can be bought as fractional shares via broker apps, suitable for regular investing.

Forex trading (swing trading)
Trade JPY currency pairs like USD/JPY or EUR/JPY on forex platforms. Advantages include two-way trading, 24-hour market, small capital, zero commissions, low spreads. Suitable for experienced traders aiming to profit from exchange rate fluctuations.

Quick FAQs

Q. What’s the difference between cash rate and spot rate?
Cash rate is the rate banks offer for physical bills, with immediate delivery but higher cost (about 1-2% worse). Spot rate is the FX market’s T+2 settlement rate, more favorable but requires waiting.

Q. How much JPY can I get with NT$10,000?
Based on Taiwan Bank’s rate on December 10: about 4.85, NT$10,000 ≈ 48,500 JPY. Using the spot rate (~4.87), about 48,700 JPY, difference roughly 200 JPY.

Q. What do I need to bring for counter exchange?
Taiwanese: ID + passport; foreigners: passport + residence permit. For online reservations, also bring transaction notice. Over NT$100,000 may require source of funds declaration.

Q. Are there withdrawal limits at foreign currency ATMs?
Different banks have different limits. CTBC, Taishin roughly NT$120,000-150,000/day; E.SUN about NT$50,000-150,000/day. It’s advisable to split withdrawals or use your own bank card to avoid cross-bank fees.

Final advice

JPY is no longer just “travel pocket money,” but also a tool for hedging and investment. Whether you’re preparing for next year’s trip or hedging against NT$ depreciation, following the principles of “staggered exchange + not leaving money idle” can minimize costs and maximize returns.

For beginners, start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transfer JPY into fixed deposits, ETFs, or small swing trades based on your needs. This way, you can enjoy more cost-effective travel and add a layer of protection during global market turbulence.