lowkeyflyer

I sent some USD to my Wise account then converted it inside of Wise to JPY in order to lock in some of the good USD->JPY rate right now.
What are my options to get this out as cash yen?

bmwe92fan

You can withdraw the cash at many convenience store ATM's -- but not all -- and I'm sure you know that the "free" withdrawal limits are really low -- like $200 / month - 2 transactions -- $100 each - otherwise you are paying an extra 1.5% - 2%... The Wise site has a list of the ATM's supported.

I learned something new -- I thought Wise only gave you the spot rate upon withdrawal -- I never realized I could use it as a currency hedging strategy -- that's a really risky strategy they are using....

lowkeyflyer

In order to withdraw the cash at convenience store ATMs, would I have to get the Wise debit card?

What other alternatives are there besides Wise for this purpose? Just convert my USD to JPY here in the states first?

bmwe92fan

Yes - you need the card. And - NO -- do NOT change your USD to Yen in the states -- and NEVER in the airport -- it's a total ripoff...

To be honest -- the best way to maximize the conversion rate in Japan is to use your US bank card to withdraw cash at any Japanese ATM -- and when you pay for anything in Japan ALWAYS pay in Yen -- NEVER take the offer to convert to USD... Most major banks will give you the spot rate on that day for the conversion -- no need to worry about hedging....

We use Chase in the US and for the past few years Japan has been "on sale" for 20-30% off! One strategy we have used is that when the yen is very weak we exchange a ton of dollars for yen and just leave it in Japan (we live there too so it's easy).... But since we are not currency traders we just do as outlined above....

lowkeyflyer

1. My local currency exchange quoted me 142 JPY/1 USD today, is this a ripoff? I though it was a decently fare rate.
2. What do you mean by "pay for anything in Japan always in yen"? Do you mean with an American credit card?
3. You mentioned you exchange a ton of dollars for yen when it is weak, I'm assuming you do this in Japan right?

bmwe92fan

1. Todays rate is 147 -- so it's close.
2. Many retail / restaurants will present you with a machine to pay and ask if you want to pay in yen or USD -- ALWAYS choose yen.
3. Yes -- in Japan. I will withdraw the max amount per day for weeks if I can -- please understand that we live in Japan and the US -- but I earn most of our money in the US -- so when the yen is weak like it is now we "stock it up" lol.... When we bought our home in Japan we took a much smaller mortgage (which is virtually free in Japan) than we normally would because the exchange rate was so favorable -- the bank wire fees were not too bad but the exchange rate was incredible - we saved 25% on our home -- which is a big deal in Tokyo as properties rarely, if ever, appreciate -- they only depreciate....

lowkeyflyer

I see. Thank you for the wealth of information.
Then for me, as a US citizen living in the US, what is my best option for withdrawing yen (assuming I need it for cash transactions and can't use an American CC)?

Are you saying that taking my Chase/Wells Fargo/US Bank debit card and just going to an ATM in Japan is better than going through Wise?

mrploddy

If you have a bank account why don't you just furikomi it to your JPY bank account ?

I used to use my Citi card from the UK to withdraw but now the bulk of my GBP salary I withdraw to wise and then furikomi it to my main JPY bank account. I'm getting an extra 1 - 2 man for my money this way.

(Literally within 1 hour of my salary landing in the UK its moved, sent and landed in my JPY bank account at my local bank here the transfers are THAT quick with Wise once established)

lowkeyflyer

I don't have a JPY bank account

YariGuy

For small amounts you can also use your US credit card to load up your Suica or Pasmo (I think the limit is 20,000 yen) to lock in the favorable rates. If you don't have a Suica you can add a virtual card on your iPhone (see separate thread).

Also, in currency trading terms, getting 142 vs. 147 is terrible.

jamar

For anyone else who might have the same idea in the future, Revolut has a higher fee-free ATM allowance than Wise for US accounts. They let you withdraw up to 1000 USD equivalent per month before they start charging you.

Agneisse

For international withdrawals get a Schwab account and debit card, they refund all ATM fees without limits.

To lock in the exchange rate you can prepay hotels and/or load up mobile Suica as discussed above.

aquanine

+1 to the Schwab checking account and debit card. They always refund all ATM fees and work at all 7/11 ATMs in Japan. Chase/WF/US Bank debit cards will charge fees to use an ATM at one of the convenience stores, while Schwab reliably refunds all fees. The only concern you may possibly have is the daily withdrawal limit of $1000USD per day (which is about 147k JPY at current exchange rates).

Don't go to your local currency exchange, they're ripping you off pretty hard at 147 vs 142.

bmwe92fan

That's what I do -- it works in nearly all ATM's I've tried and you get a decent conversion rate...

yourbackseatkiller

You can also buy JPY futures through your broker as a hedge.

On the other hand, people that locked in their rate a few months ago lose quite a bit of money.

There is no telling when the exchange rate will go back up.