Japan - Currency Exchange

I'm currently in Bangkok and will travel to meet family coming from US in Tokyo in 2 weeks. I heard its best to do currency exchange at Tokyo Airport? Is that true? Are the rates much better?

I'm currently in Bangkok and will travel to meet family coming from US in Tokyo in 2 weeks. I heard its best to do currency exchange at Tokyo Airport? Is that true? Are the rates much better?

Same rate everywhere in Japan. 3 yen off the market (mid-rate) for cash. 1 yen for a wire.

Same rate everywhere in Japan.

Same rate at every bank. You'll pay more at a hotel, and perhaps a little less at those cheap ticket resale shops you'll find in places like the area around Kanda station.

Same rate at every bank. You'll pay more at a hotel, and perhaps a little less at those cheap ticket resale shops you'll find in places like the area around Kanda station.
Unless things changed in the last few years I wouldn't go to a bank even a large branch of a major bank. You used to have to wait for ages for simple transactions. Go to currency exchange at the airport, in town (e.g. Travelex) or better still use ATMs.

I'll add to the suggestion of changing money at the airport. Unlike many countries, airport foreign exchange is not a ripoff in Japan. The rate for USD exchange has consistently been at 2.5% commission for cash, or 0.5% for traveler's cheques. Compare this to 14% that I consistently see at US airports. I've seen hotels offering foreign exchange anywhere from rates that match the airport/banks to up to 6%.

I used to have a Citibank account, so I always used my debit card to obtain the daily limit of cash at the NRT Citibank ATM.

Obtaining cash in Japan has become incredibly easier since I first went there in the 1970s. In those days, it took twenty minutes of bureaucratic rigmarole at a bank to cash a few travelers' checks. You'd sit and watch as your paperwork went from one desk to another to be glanced at and stamped. Then they'd give you a voucher to take to the tellers' area. You'd then wait for your name to be called to receive your cash.

They had ATMs before most places in the U.S. did, but none of them accepted foreign cards.

Cash advances on credit cards became possible during the 1980s, but you still had to go to a bank.

The Citibank ATMs came in during the 1990s, so knowledge of their locations became precious information for visitors.

The post office ATMs began accepting foreign cards in time for Japan's co-hosting of the World Cup in 2002.

Now the 7-11 ATMs take foreign debit cards, and they're always open.

The one caution is that your debit card undoubtedly has a daily withdrawal limit. That limit is based on midnight to midnight in your home time zone, not on local time.

You can check the NRT rates online:

http://www.narita-airport.or.jp/exchange_e/index.html

Note that travelers' checks get a better rate than cash though you would have to take fees into account to decide whether they are a better deal.

You can check the NRT rates online:

http://www.narita-airport.or.jp/exchange_e/index.html

Note that travelers' checks get a better rate than cash though you would have to take fees into account to decide whether they are a better deal.

As I said it's one yen on wire (T is short for TT is short for Telegraphic Transfer) and three yen on cash. You get the wire rate for travelers checks as well. Same at hotels, banks, etc. but as Hailstorm said, you may be able to find some backstreet money changers who will do it more cheaply.

Unless things changed in the last few years I wouldn't go to a bank even a large branch of a major bank. You used to have to wait for ages for simple transactions.

20 minutes, at the bank or at the post office. It's a travelling experience after all. Oh and the clerk called me back after 10 minutes because I didn't put a $ sign in front of the number. Still more interesting than waiting 20 minutes in a KL post office for a postage stamp :)

20 minutes, at the bank or at the post office. It's a travelling experience after all. Oh and the clerk called me back after 10 minutes because I didn't put a $ sign in front of the number. Still more interesting than waiting 20 minutes in a KL post office for a postage stamp :)

I always get the banks back by leaving a one yen coin in the the little round plastic money dish. Then I sprint out the door and down the street. It usually takes them at least several blocks for them to catch me and return my "money." I figure if everyone did this, it would eventually break the system and they would just put a machine in the bank lobby.

I always get the banks back by leaving a one yen coin in the the little round plastic money dish. Then I sprint out the door and down the street. It usually takes them at least several blocks for them to catch me and return my "money." I figure if everyone did this, it would eventually break the system and they would just put a machine in the bank lobby.
And if you made it all the way to Roppongi, you'd blend in with all of the other gaijin, and they'd never find you. So they'd have to give one yen to everyone, just to be safe.

You can check the NRT rates online:

http://www.narita-airport.or.jp/exchange_e/index.html

Note that travelers' checks get a better rate than cash though you would have to take fees into account to decide whether they are a better deal.

Sorry, but do you mean the fees to acquire the travelers' checks, or is there an additional fee to accept/process the checks at Narita?

Sorry, but do you mean the fees to acquire the travelers' checks, or is there an additional fee to accept/process the checks at Narita?

Looks to me like the reference is to the fees to acquire the cheques.

Why don't people use ATMs?

It's interesting that Travelex hijacked the ATMs at LHR and charge non-UK cardholders exchange fees.

And if you made it all the way to Roppongi, you'd blend in with all of the other gaijin, and they'd never find you. So they'd have to give one yen to everyone, just to be safe.

I only go to Roppongi during non-banking hours.;)

Why don't people use ATMs?

It's interesting that Travelex hijacked the ATMs at LHR and charge non-UK cardholders exchange fees.

Because in Japan, cashing T/C is cheaper than using ATM, if you can buy your T/C at home no-fee, which is possible everywhere in North America. Also some people need more than a few hundred USD (which is the usual ATM limit for North American bank cards).

Sorry, but do you mean the fees to acquire the travelers' checks, or is there an additional fee to accept/process the checks at Narita?

There is no fee at Narita or any bank or post office in Japan to cash T/C.

T/C can be acquired no-fee everywhere in Toronto (where you are located).

Because in Japan, cashing T/C is cheaper than using ATM, if you can buy your T/C at home no-fee, which is possible everywhere in North America. Also some people need more than a few hundred USD (which is the usual ATM limit for North American bank cards).

The person in question is American and lives in Thailand. I assume that he has both Thai and US bank accounts.

If you bank with Capital One in the US then you can take out cash at the INTERBANK rate with no fees. If you buy a TC in the US (who does that anymore?) then you will incur a hefty forex fee in obtaining yen. Other banks probably charge a nominal fee. My other US bank charges 1% forex fee; used to be interbank.

Furthermore, I hardly ever need cash in Japan. I cover 99% of expenditures by CC. Again, an American using Cap One will pay interbank rate via CC or 1-2% with other CCs. If a tourist needs to spend $100s per day then I am sure that the merchant takes CC.

Even my local shoemaker takes CCs above 2000 yen.

There is no fee at Narita or any bank or post office in Japan to cash T/C.

T/C can be acquired no-fee everywhere in Toronto (where you are located).

Great, and what exchange rate do you get??? The "fee" is baked into the exchange rate.

Ok, http://www.narita-airport.or.jp/exchange_e/index.html gives 83.00 with yen at 84.00. Not bad. If you have the right bank then ATM is better. This 1 yen per USD is about what Citibank charges for its multi-currency accounts -- and I complain about that being a ripoff, especially for people who exchange large amounts per year.

p.s. Aha: "The US/C buy rate is for traveler's checks issued by the Bank of Tokyo-Mitsubishi UFJ.
Rates will be different for traveler's checks issued by other operators - inquire at the counter for details." So you will pay more............

If you buy a TC in the US (who does that anymore?) then you will incur a hefty forex fee in obtaining yen.

Uh, no. First of all, let me be clear that I'm referring to getting USD-denominated TC's in the US. If you get yen-denominted TC's, the US bank will likely charge you 6-9% forex fees, but you can get USD TCs for much less - often for no cost at all. Once you get to NRT, the airport exchange booth will exchange USD TC's into yen currency for about 0.5% fee built into the commission.

It's interesting that Travelex hijacked the ATMs at LHR and charge non-UK cardholders exchange fees.

That happened at my local shopping mall as well here in Texas. It has enough foreign visitors that it has an actual manned Travelex exchange booth in it as well (has had one for years). But just in the last few weeks, in a different part of the mall, the ATMs that were previously there have been removed and replaced with Travelex ATMs.

At least for domestic US cards, they charge a $3 service fee. That's on the high end of things, but no higher than what some banks charge these days and probably no different than the ATMs they replaced. It didn't make sense to me that Travelex would want to get into this business until you mentioned the above. Now, I suspect that they might charge a forex fee for non-US cards as you report at LHR. The Travelex booth in the mall charges a whopping 14% fee in its "NO COMMISSION!" exchange rate. If they can get a few foreign cards a day to use the ATM, that would add up!

Uh, no. First of all, let me be clear that I'm referring to getting USD-denominated TC's in the US. If you get yen-denominted TC's, the US bank will likely charge you 6-9% forex fees, but you can get USD TCs for much less - often for no cost at all. Once you get to NRT, the airport exchange booth will exchange USD TC's into yen currency for about 0.5% fee built into the commission.

Anything with Forex is ridiculous in the US, so you obviously would get USD denominated TCs in the US and I guess it's for free via some channels. The spread at Narita is 1 yen per dollar roughly, so that's 1.25%. But the footnote shows that it's only for Mitsubishi issues TCs. So the best you can do is probably around 2%, which is not very good.

Travelex is quite the plague. I guess there are enough stupid people around to keep them in business.

That happened at my local shopping mall as well here in Texas. It has enough foreign visitors that it has an actual manned Travelex exchange booth in it as well (has had one for years). But just in the last few weeks, in a different part of the mall, the ATMs that were previously there have been removed and replaced with Travelex ATMs.

At least for domestic US cards, they charge a $3 service fee. That's on the high end of things, but no higher than what some banks charge these days and probably no different than the ATMs they replaced. It didn't make sense to me that Travelex would want to get into this business until you mentioned the above. Now, I suspect that they might charge a forex fee for non-US cards as you report at LHR. The Travelex booth in the mall charges a whopping 14% fee in its "NO COMMISSION!" exchange rate. If they can get a few foreign cards a day to use the ATM, that would add up!

I put my card in once at LHR. The exchange rate was not good (maybe 3-4% off) but it was not 14%. So those dimwits you see lining up at Travelex booths in US airports pay 14%! Unbelievable.

Great, and what exchange rate do you get??? The "fee" is baked into the exchange rate.



Why would I pay any fee? USD bank account -> USD T/C = 1:1

Who is stupid enough to buy YEN T/C outside of Japan?

Why would I pay any fee? USD bank account -> USD T/C = 1:1

Who is stupid enough to buy YEN T/C outside of Japan?

I guess you don't grasp the concept that the Japanese bank charges a fee by way of its exchange rate for converting these USD TCs into JPY cash? And that the % cost is going to be higher than any ATM withdrawal.

I am sure that the same people who buy cash at exchange rates that are "off" by 14% at Travelex also buy JPY TCs in the US.

Tangential question: Why is the spread on CNY<->JPY so horrendous? I'm seeing a 2-yen difference per 1RMB either way.

I guess you don't grasp the concept that the Japanese bank charges a fee by way of its exchange rate for converting these USD TCs into JPY cash? And that the % cost is going to be higher than any ATM withdrawal.


Based on the posted narita exchange rates for Mar 21, USD T/C

Buy 84.68 Sell 82.68 a spread of 2.419%.

Assuming the bank does not lose money doing currency exchange, the "fee" for a transaction is 0 - 2.419%. Further assume that they make the same money buying or selling, each transaction's "fee", ALL-IN, is 1.2095%.

If you have a no-exchange-fee, no ATM-fee bank card, then yes you beat T/C. Such bank cards are non-existent in many countries.

Edit: If I am not mistaken Plus/Cirrus/Visa/MasterCard charge 1%. Your own bank charge whatever on top(most banks in Canada charge 2%). Add ATM fee $3-5 per withdrawal, max. withdrawal $600. You need $601, you pay 2X ATM fee.

Tangential question: Why is the spread on CNY<->JPY so horrendous? I'm seeing a 2-yen difference per 1RMB either way.

supply/demand? Well the spread for any currency(cash rate)other than USD and EUR is bad in Japan.

In the context of a trip to Japan, losing a couple of extra yen on an ATM withdrawal is a small price to pay for having to deal with neither the bureaucratic red tape that Japanese banks impose on people who cash travelers' checks nor the high fees that Travelex booths charge.

When international ATMs were installed in the post offices, I said good-bye to travelers' checks and never looked back.

Based on the posted narita exchange rates for Mar 21, USD T/C

Buy 84.68 Sell 82.68 a spread of 2.419%.

Assuming the bank does not lose money doing currency exchange, the "fee" for a transaction is 0 - 2.419%. Further assume that they make the same money buying or selling, each transaction's "fee", ALL-IN, is 1.2095%.

If you have a no-exchange-fee, no ATM-fee bank card, then yes you beat T/C. Such bank cards are non-existent in many countries.

Edit: If I am not mistaken Plus/Cirrus/Visa/MasterCard charge 1%. Your own bank charge whatever on top(most banks in Canada charge 2%). Add ATM fee $3-5 per withdrawal, max. withdrawal $600. You need $601, you pay 2X ATM fee.

Those rates at NRT are only for Mitsubishi issued TCs. See the footnote. I can guarantee you that an American with his Amex TCs will be hit with 2-3% more. Probably closer to the posted cash rate.

And yes, Capital One US gets you the interbank rate unless there is a lot of volatility in the forex market. (I have checked a number of times). My other (small) US bank had the same but now charge 1%. They told me that they used to cover the Visa/Plus 1% as a courtesy but now pass it on. For Cap One they used to charge a flat $2 but their newish XXXX checking has no fees for intl and covers up to $15 of ATM fees imposed by the machine owner per month.

supply/demand? Well the spread for any currency(cash rate)other than USD and EUR is bad in Japan.

...that would also explain the horrendous spread I got on CAD too. Back in January I discovered a 4yen/C$ difference exchanging JPY->CAD in Canada vs Japan (in favor of doing it in Canada).

(glad I've got a no-fee UnionPay ATM card for my next trip)

So the best best for this Canadian would be to exchange his CAD into JPY here before departing for NRT and only using CC & debit as back-ups, correct?

There is an article on the Japanese version of about.com which says that, generally speaking:


Rates in Canada are better than rates in Japan
Rates in city centers are better than rates at the airport (in Canada)
Rates in Vancouver are better than rates in Toronto


Here is the link: http://allabout.co.jp/gm/gc/379006/

I don't know exactly how the math would work out, but you might also consider exchanging CAD to USD in Canada and then exchanging USD to JPY in Japan. I am not sure what CAD/USD exchange spreads are but I suspect that they would be much tighter than CAD/JPY exchange spreads.

I never ever did CAD-JPY exchange. Rates are just terrible. I carry whatever I have left from previous visits (usually less than 10,000JPY).

You get the best rates for Japan by:

1. USD travelers cheques. This works only if you buy no-fee cheques from CAA, certain currency dealers downtown Toronto(and Vancouver?), or banks if you hold gold credit cards or just by asking, AND you already have USD a/c or cash sitting around, so you don't have to pay to obtain USD. Otherwise if you have brokerage account or certain plans, the preferred CAD-USD exchange is ~1.5% over interbank rate. Cash your cheques at the airport. Everywhere else - banks/post offices, it takes at least 20 minutes.



2. ATM


While in Japan, I try to use CC as much as possible.


Looking at the exchange rates at Narita: http://www.narita-airport.or.jp/exchange_e/index.html



US dollar(US) USD 93.68 95.48 91.68 89.68

Canadian dollar(CAN$) CAD 94.50 101.50 91.14 84.30

The buy/sell spread for USD T/C is 2%(93.68 - 91.68) , CAD T/C 3%(94.5 - 91.14) . Assume the bank makes equal money both ways => you lose 1% cashing USD T/C and 1.5% for CAD T/C.

On the other hand, CAD cash spread is almost 20% !!!!! or 1 CAD T/C = 91.14 yen vs 1 CAD cash = 84.30yen

So if you don't have USD a/c or cash to buy USD T/C, CAD T/C is almost as good. Again, assuming you pay no fee to get the T/C.

So the best best for this Canadian would be to exchange his CAD into JPY here before departing for NRT and only using CC & debit as back-ups, correct?

I haven't taken mine out for a spin yet (but have a trip to Japan/Thailand in March to get some empirical data myself) but have you considered getting the Amazon.ca Rewards Visa (http://www.amazon.ca/gp/cobrandcard/marketing.html)? No forex fee so you only have to lose out based on Visa's International Exchange rate (http://corporate.visa.com/pd/consumer_services/consumer_ex_rates.jsp) which has a pretty good rate overall. My plan for Japan is to pay as much as I can using this credit card supplemented by Yen I'm hoping to exchange here in Vancouver (http://www.vbce.ca/rates/major-currencies) which is a bit off the Visa international rate. I'm looking to use an ATM card to get Yen only if I run out.