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Currency Exchange

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Comprehensive Guide to Currency Exchange in Tokyo, Japan

Tokyo, as one of the most visited cities in the world, offers a variety of options for currency exchange. However, navigating the process can be tricky if youโ€™re unfamiliar with the local systems, fees, and cultural nuances. Below is a detailed guide to help you exchange currency efficiently and safely in Tokyo.

1. Currency Basics in Japan

  • Currency Name: Japanese Yen (JPY, ยฅ)
  • Denominations:
    • Coins: ยฅ1, ยฅ5, ยฅ10, ยฅ50, ยฅ100, ยฅ500
    • Banknotes: ยฅ1,000, ยฅ2,000 (rare), ยฅ5,000, ยฅ10,000
  • Exchange Rate: The exchange rate fluctuates daily. As of late 2023, ยฅ1,000 is approximately $6.70 USD or โ‚ฌ6.30 EUR, but always check the current rate before exchanging.

2. Best Places to Exchange Currency in Tokyo

Tokyo offers several reliable options for currency exchange. Here are the most recommended places:

a. Banks

  • Examples: Mitsubishi UFJ Bank, Mizuho Bank, Sumitomo Mitsui Banking Corporation (SMBC)
  • Pros:
    • Reliable and secure
    • Transparent exchange rates
    • No risk of counterfeit currency
  • Cons:
    • Limited operating hours (typically 9:00 AM to 3:00 PM, Monday to Friday)
    • Long wait times
  • Procedure:
    • Bring your passport (required for foreigners).
    • Fill out a currency exchange form.
    • Hand over your foreign currency and receive Japanese yen.
  • Fees: Banks may charge a small handling fee (ยฅ500โ€“ยฅ1,000) or offer slightly less favorable rates compared to specialized exchange services.

b. Currency Exchange Counters

  • Examples: Travelex, Sakura Exchange, World Currency Shop
  • Locations: Found in airports, major train stations (e.g., Tokyo Station, Shinjuku Station), and shopping districts.
  • Pros:
    • Convenient locations
    • Extended hours compared to banks
    • English-speaking staff
  • Cons:
    • Exchange rates may include hidden markups.
  • Fees: Some counters charge a flat fee, while others build fees into the exchange rate.

c. Airports

  • Examples: Narita International Airport, Haneda Airport
  • Pros:
    • Convenient for immediate cash needs upon arrival
    • Open early and late
  • Cons:
    • Exchange rates are often less favorable than in the city.
    • Higher fees compared to banks or city-based counters.

d. ATMs

  • Examples: Seven Bank (7-Eleven), Japan Post Bank, Lawson ATMs
  • Pros:
    • Widely available (7-Eleven ATMs are open 24/7)
    • Competitive exchange rates
    • No need to carry large amounts of foreign currency
  • Cons:
    • Your home bank may charge international withdrawal fees.
    • Daily withdrawal limits may apply.
  • Procedure:
    • Insert your international debit/credit card.
    • Select "Foreign Card" and follow the prompts.
    • Withdraw yen directly from your account.

e. Hotels

  • Pros:
    • Convenient for tourists staying in major hotels.
  • Cons:
    • Exchange rates are often the least favorable.
    • Limited to small amounts of currency.

f. Money Transfer Apps and Online Services

  • Examples: Wise (formerly TransferWise), Revolut
  • Pros:
    • Excellent exchange rates
    • Low fees
    • Convenient for transferring money to a Japanese bank account
  • Cons:
    • Requires a Japanese bank account for yen withdrawal.

3. Typical Exchange Rates and Fees

  • Exchange Rates: Always check the mid-market rate (the "real" exchange rate) on platforms like XE.com or Google before exchanging. Expect a slight markup at banks and exchange counters.
  • Fees:
    • Banks: ยฅ500โ€“ยฅ1,000 per transaction
    • Exchange Counters: 1โ€“3% markup on the exchange rate
    • ATMs: ยฅ100โ€“ยฅ300 per withdrawal, plus your home bankโ€™s fees
    • Hotels: 5โ€“10% markup on the exchange rate

4. Required Identification

  • Passport: Foreigners are required to present their passport for currency exchange at banks and exchange counters.
  • Visa/Residence Card: Not typically required for currency exchange but may be requested in rare cases.
  • Credit/Debit Card: Required for ATM withdrawals.

5. Step-by-Step Procedure for Currency Exchange

  1. Check the Exchange Rate: Use an app or website to find the current rate.
  2. Choose a Location: Decide whether to exchange at a bank, counter, or ATM based on convenience and fees.
  3. Prepare Identification: Bring your passport and any other required documents.
  4. Complete the Transaction:
    • At a bank or counter: Fill out the exchange form, hand over your foreign currency, and receive yen.
    • At an ATM: Insert your card, select "Foreign Card," and withdraw yen.
  5. Count Your Money: Double-check the amount before leaving the counter or ATM.

6. Safety Tips

  • Avoid Street Vendors: Never exchange money with unauthorized individuals or street vendors, as counterfeit currency is a risk.
  • Use Reputable Services: Stick to banks, ATMs, or well-known exchange counters.
  • Be Discreet: Avoid counting large amounts of cash in public.
  • Secure Your Cash: Use a money belt or secure wallet to store your yen.

7. Cultural and Practical Considerations

  • Cash is King: Japan is still a cash-heavy society, especially in smaller shops, restaurants, and rural areas. Always carry some yen in cash.
  • Clean Bills: Japanese banks and exchange counters may refuse damaged or excessively worn foreign currency.
  • Exact Change: Japanese people value precision, so try to use exact change when paying in cash.
  • Tipping: Tipping is not customary in Japan, so donโ€™t worry about carrying extra cash for tips.
  • Language Barrier: While many exchange counters have English-speaking staff, smaller banks may not. Use translation apps if needed.

8. Common Pitfalls to Avoid

  • Exchanging at Airports: Only exchange small amounts at airports due to poor rates.
  • Ignoring Fees: Always ask about fees and compare rates before exchanging.
  • Carrying Excessive Cash: While Japan is safe, carrying large amounts of cash can still be risky.
  • Relying Solely on Credit Cards: Not all establishments accept credit cards, so always have cash on hand.

9. Emergency Tips

  • If you run out of cash:
    • Use an international ATM at 7-Eleven or Lawson.
    • Visit a currency exchange counter in a major train station or shopping area.
  • If your card is declined:
    • Contact your home bank to ensure your card is authorized for international use.
    • Use a backup card or try a different ATM.

By following this guide, youโ€™ll be well-prepared to exchange currency in Tokyo efficiently and safely. Always plan ahead, compare rates, and keep cultural considerations in mind to make the most of your trip!