Recently, I found that many people are asking about exchanging Japanese Yen in Taiwan, so I organized all the channels to prevent everyone from falling into traps.

Speaking of which, there are actually four ways to exchange Yen in Taiwan, and the exchange rates can vary quite a bit, sometimes by a few hundred New Taiwan Dollars. Let me start with the conclusion: if your budget is between 50k and 200k NTD, I highly recommend the combination of "online currency exchange + airport pickup" or "foreign currency ATM," which is both time-saving and cost-effective.

Why are so many people exchanging Yen? Besides travel, the Yen itself is one of the world's top three safe-haven currencies, alongside the US dollar and Swiss franc. Japan's economy is stable, with low debt, and when markets get turbulent, funds flood into Yen as a hedge. During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week, while the stock market dropped 10%, showing how strong its hedging effect is. For Taiwanese investors, exchanging some Yen is like buying insurance for the Taiwan stock market.

Now, let's get to the main topic. The most traditional way is to go directly to a bank or airport counter to exchange, but honestly, this method is the most costly. Banks sell foreign currency at a "cash selling rate," which is 1-2% worse than the spot rate, plus possible handling fees, making it the most expensive option. I've seen some banks charge an extra 100-200 NTD handling fee, which is basically taking advantage of you. This method is only suitable for urgent needs, like suddenly realizing you have no cash at the airport.

The second method is online currency exchange, where you use an app or online banking to convert NTD into Yen and store it in a foreign currency account. Using the "spot selling rate" offers about 1% better rates. If you want cash, you can go to a counter or withdraw from a foreign currency ATM, but there will be exchange fees during withdrawal. The advantage of this method is that it can be done 24/7, allowing you to watch the rates and buy in batches when the rate is favorable, averaging your cost—especially suitable for those experienced with forex. Plus, after exchanging, you can also open Yen fixed deposits, which currently have an annual interest rate of about 1.5-1.8%, earning passive income.

The third method I personally recommend most is online currency settlement. Taiwan Bank's "Easy Purchase" service works like this: fill in the amount and branch for pickup on their official website, then go to the branch with your ID and transaction notification to pick up the Yen. The best part is that Taiwan Bank offers fee-free Yen exchange with about 0.5% better rates. You can also reserve airport branches for pickup; Taoyuan Airport has 14 Taiwan Bank locations, two of which operate 24 hours. You can pick up Yen directly at the airport before your trip—super convenient. The only downside is you need to make a reservation 1-3 days in advance.

The fourth method is using foreign currency ATMs, which allow you to withdraw Yen cash directly with a chip-enabled bank card, operating 24/7. Withdrawing from your NTD account only costs about 5 NTD in interbank fees, much cheaper than exchanging at a counter. However, the locations are limited—only around 200 units nationwide—and the denominations are fixed at 1,000, 5,000, and 10,000 Yen. During peak times, cash may run out. It's recommended not to wait until the last minute to withdraw, to avoid unnecessary trips.

Now, let me summarize the costs for these four methods. Suppose you want to exchange 50,000 NTD: counter exchange loses about 1,500-2,000 NTD, online exchange loses about 500-1,000 NTD, online settlement loses about 300-800 NTD, and foreign currency ATM loses about 800-1,200 NTD. The differences are quite clear, so choosing the right method can save you a lot.

Is it a good time to exchange Yen now? That's a good question. The Yen has long been considered a safe-haven currency, suitable for hedging against Taiwan stock market volatility, but short-term risks include arbitrage unwinding, which could cause fluctuations of 2-5%. My advice is to buy in batches and avoid exchanging all at once. Also, after exchanging, don’t let the money sit idle without interest—consider transferring it into Yen fixed deposits, Yen ETFs, or even trying some forex swing trading.

If you're a beginner, I suggest starting with Taiwan Bank's online settlement plus airport pickup, or using foreign currency ATMs for emergencies. Once familiar, you can transfer Yen into fixed deposits or ETFs based on your needs. This way, not only can you enjoy more cost-effective international travel, but you also add a layer of protection during global market turbulence. The key to exchanging Yen in Taiwan is "batch operation + not letting the money sit idle," minimizing costs and maximizing returns.