After the Japanese Yen appreciates by 8.7%, how should you exchange to get the best deal? An article covering 4 major channels and a 150,000 Yen allocation plan

In December 2025, the Taiwan dollar against the Japanese yen has surged to a level of 4.85, appreciating by 8.7% from 4.46 at the beginning of the year. This is not just a number travelers should pay attention to, but also a window of opportunity investors should seize. As the Bank of Japan contemplates raising interest rates and the yen becomes one of the world’s three major safe-haven currencies, exchanging yen is no longer just a routine before traveling abroad, but a meticulous calculation of costs and benefits.

Is it really cost-effective to exchange yen now? How to interpret market signals

Exchange rate background: Significant appreciation but still volatile

Behind the 8.7% appreciation since the start of the year, several forces are at play. Bank of Japan Governor Ueda Kazuo recently signaled a hawkish stance, with market expectations of a rate hike to 0.75% by December 19 (a 30-year high), and Japanese government bond yields reaching a 17-year high of 1.93%. Meanwhile, the US has entered a rate-cut cycle, narrowing the US-Japan interest rate differential to 4.0%, posing risks of unwinding arbitrage trades.

USD/JPY has fallen from a high of 160 at the start of the year to 154.58, with short-term fluctuations possibly returning to 155, but medium to long-term forecasts suggest below 150. For Taiwanese investors, this indicates that yen volatility remains high; staggered entry is better than a one-time full exchange.

Who should exchange yen now?

Three groups are most encouraged to act: first, travelers planning to go abroad next year (locking in current rates to hedge against further appreciation); second, investors holding hedging assets (yen as a safe-haven during geopolitical conflicts—during the 2022 Russia-Ukraine conflict, the yen appreciated 8% in a week, buffering stock market declines); third, small investors seeking FX gains (already profit of 8.7% since the start of the year, with room for further gains).

Practical comparison of 4 yen exchange channels: Cost, time, flexibility—full PK

Choosing the right currency exchange method can make a difference of over NT$1,000 on NT$50,000. Below is an analysis based on the real-time rate as of December 10, 2025.

1. Bank counter cash exchange — Traditional but most costly

Carrying NT$ into a bank or airport counter to buy yen cash, using the “cash selling rate” (1-2% worse than spot rate).

Cost analysis: Taking Taiwan Bank as an example, the cash selling rate is about NT$0.2060 per yen (i.e., NT$1 = 4.85 yen). NT$50,000 exchanged at the counter results in a loss of about NT$1,500-2,000, with some banks charging an additional NT$100-200 handling fee.

Suitable for: Small, urgent needs, airport emergencies, unfamiliar with online operations. Recommended as a backup, not the main method.

2. Online FX transfer + counter or ATM withdrawal — Balanced approach

Using bank app or online banking, convert NT$ into foreign currency at the “spot selling rate” (about 1% discount), then withdraw cash at counters or ATMs. Withdrawal incurs a currency conversion fee (from NT$100).

Cost analysis: NT$50,000 costs about NT$500-1,000, can be done in batches to observe exchange rates. E.SUN Bank, Taishin Bank, etc., offer this service, with cross-bank ATM fees as low as NT$5.

Advanced use: After exchange, if not rushing to withdraw cash, deposit into a foreign currency account to enjoy yen fixed deposit rates of 1.5-1.8%. For those holding over NT$150,000 in yen, this is especially cost-effective—annual interest can be NT$2,250-2,700.

Suitable for: Those with FX investment experience, regularly using foreign currency accounts, planning staggered entry.

3. Online currency exchange + airport or bank withdrawal — Best planning option

No need for a foreign currency account, just fill in currency, amount, branch, and date on the bank’s official website, then complete the remittance and pick up with ID + transaction notice at the counter. Taiwan Bank’s “Easy Purchase” online FX can reserve at 14 Taoyuan Airport locations (2 open 24 hours).

Cost analysis: Taiwan Bank’s online FX is fee-free (NT$10 if paid via TaiwanPay), with a 0.5% rate advantage, resulting in about NT$300-800 loss on NT$50,000. This is the lowest-cost among the four methods.

Pre-planning advantage: Book 3-7 days in advance to avoid queues at the airport, especially during peak travel seasons when cash may run out. Most friendly for travelers who want to withdraw cash directly before departure.

Suitable for: Well-planned travelers with ample time, especially those wanting to carry cash at the airport.

4. Foreign currency ATM 24-hour withdrawal — Emergency tool

Using a chip-enabled financial card at foreign currency ATMs to withdraw yen cash, open 24/7, cross-bank fee NT$5 (deducted directly from NT$ account). E.SUN Bank’s foreign currency ATM limit is NT$150,000 per day, no FX fee.

Cost analysis: NT$50,000 withdrawal results in a loss of NT$800-1,200. Limited locations (~200 nationwide), mainly in urban areas and airports, sparse in rural areas. Fixed denominations (1,000/5,000/10,000 yen), cash may run out during peak times.

Risk warning: Japan ATM withdrawal services will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus). Taiwan’s foreign currency ATMs remain normal, but don’t wait until the last minute to avoid cash shortages.

Suitable for: People with no time to visit banks, urgent cash needs, or those wanting to withdraw in small amounts multiple times.

Cost comparison table of the four methods

After exchanging yen, how to utilize NT$150,000 in yen? Don’t let your money sit idle and earn zero

Exchanging yen is just the first step; smart investors will make this money work for them.

Fixed deposit — Most stable: Open a foreign currency account and deposit yen for fixed-term deposit, with an annual interest rate of 1.5-1.8%. NT$150,000 at 1.6% yields about 2,400 yen (around NT$480) annually. Minimum deposit of 10,000 yen, flexible deposit and withdrawal, ideal for risk-averse.

Insurance — Medium-term yield lock: Cathay, Fubon Life offer yen savings insurance with guaranteed interest rates of 2-3%, suitable for funds that stay untouched for 3-5 years. Slightly higher than fixed deposit rates but with limited liquidity.

ETF — Long-term appreciation: Yuanta 00675U tracks the yen index, can buy fractional shares via broker apps, suitable for dollar-cost averaging on yen appreciation. Annual management fee 0.4%, low-cost, flexible long/short.

FX swing trading — Capture short-term volatility: Direct trading of USD/JPY or EUR/JPY on platforms like Mitrade. Zero commission, low spreads, 24-hour trading, suitable for experienced traders. Beware—while BOJ rate hikes favor the yen, global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) may push the yen down, with 2-5% bidirectional volatility.

Quick FAQ

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

Cash rate is the buy/sell rate banks offer for physical banknotes, with the advantage of immediate delivery but worse rates (usually 1-2% worse). Spot rate is the market’s two-business-day delivery rate, mainly used for electronic transfers and foreign currency accounts, closer to international market prices.

How much yen for NT$10,000?

Using Taiwan Bank’s cash selling rate of NT$0.2060/yen, NT$10,000 can buy about 48,500 yen. Using the spot selling rate (~4.87), about 48,700 yen, a difference of roughly 200 yen.

What to bring for counter exchange?

Taiwanese need ID + passport; foreigners need passport + residence permit; companies need business registration proof. If pre-booked online, also bring transaction notice. Under 20 years old requires parental accompaniment; amounts over NT$100,000 may require source of funds declaration.

Are there withdrawal limits at foreign currency ATMs?

Different banks have different limits. CTBC: NT$120,000/day equivalent; Taishin: NT$150,000/day; E.SUN: NT$150,000/day (including debit). It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees (NT$5 per transaction).

Summary: Staggered exchange + immediate deployment

The yen has upgraded from a “travel pocket money” to a “hedging and investment asset.” The appreciation window at the end of 2025 is a good time to lock in exchange rates.

The core strategy is simple—staggered entry (to avoid losses if rates move unfavorably) + immediate allocation after exchange (fixed deposits, ETFs, or swing trading to generate cash flow). Beginners can start with “Taiwan Bank online FX + airport pickup,” then upgrade to foreign currency ATMs or a combination of fixed deposits as experience grows.

This not only makes your trips more cost-effective but also adds a layer of protection during global market turbulence, thanks to yen’s safe-haven characteristics.