Can I use US dollars or other foreign currency in Japan?

Find out why shops in Japan expect yen, where foreign cash is occasionally taken, and what to do instead when only dollars or euros are in the wallet.

Published October 20, 2026 at 5:57 PM JST | By Tokyo Paul

Quick answer: Generally no. Japan's official currency is the yen, and most shops, restaurants, trains and taxis expect payment in yen or by card. Foreign cash is accepted only in a few places, such as some airport shops or tourist-oriented sites, and usually at a poor rate. Exchange foreign cash into yen at a counter or bank, or withdraw yen from an ATM.

Why yen is the normal rule

The yen is Japan's official currency, with the symbol and international code JPY, as the encyclopedia article on the yen explains. Daily life, from vending machines to rail tickets, is priced and handled in yen. The Bank of Japan's page on notes and coins in current use lists 1,000, 2,000, 5,000 and 10,000 yen notes and 1, 5, 10, 50, 100 and 500 yen coins, although the 2,000 yen note is rarely seen.

Prices are displayed in yen, tills are set up for yen, and staff are not usually equipped to convert other currencies. A shop that accepted dollars would need to set its own rate and give change in yen, which most do not do. Because of this, travelers who arrive with only foreign cash typically need to exchange it before shopping.

The country is also described by the Japan National Tourism Organization (JNTO) as very much a cash-based society, although international cards are generally accepted nationwide. So the answer for a visitor is a mix of yen and cards, not foreign notes.

Where foreign cash may be taken

There are a few exceptions. Some airport shops, duty-free areas and tourist-oriented businesses may take certain foreign currencies, or display prices in more than one currency. Whether a particular business accepts foreign cash depends on that business, and the rate used is set by the seller, so it may be less favorable than a bank's.

Even where foreign cash is accepted, change is usually returned in yen. A small purchase paid with a large foreign note can leave the traveler with more yen than expected and a rate that is hard to judge. The safest approach is to ask before handing over any note, and to ask what rate is used.

Because acceptance can change from one business to another, none of these exceptions should be counted on. A traveler who plans to pay in dollars may end up unable to buy a train ticket or a meal. Carry yen or a card as the default.

How to turn foreign cash into yen

JNTO says foreign currency can usually be exchanged at exchange counters, banks, some hotels and shops that deal in foreign currency, and that all major airports have exchange points in their arrival halls. Which currencies can be exchanged depends on the counter, so US dollars, euros and pounds are usually the easiest, and less common currencies may not be accepted everywhere.

At the counter, hand over the cash, check the rate and total, and keep the receipt. Identification is often requested, so carrying a passport is wise. JNTO says many bank branches close at 3 p.m., so afternoon visits may be too late.

Another option is an ATM withdrawal. Machines at post offices and convenience stores accept many international cards, so a traveler with a card can skip the exchange step. The card issuer may charge fees and use its own rate, so check the terms before departure.

Costs and rates

Rates for foreign cash move every day. JNTO says exchange rates fluctuate with financial market trends. The Bank of Japan publishes daily reference rates for the yen against the US dollar, which show the market level, though a counter will quote its own buy rate with a margin. For this reason, compare the total yen received before handing over cash.

Costs can include a margin built into the rate and a separate commission at some providers. Airport counters are convenient, and often priced accordingly. A bank branch or city counter may give a better result, but the difference varies by provider and day.

If dollars or euros are left unspent, they can be kept for the next trip. Smaller notes and coins in foreign currency are often hard to exchange, so it helps to bring a few larger notes rather than a pile of small ones.

Who needs to plan most carefully

Visitors from countries that use the dollar, euro or pound may assume their notes will be accepted in a major city. It is better to assume they will not be. Business travelers on short trips, cruise passengers who stop for a few hours and transit passengers with a layover should all prepare a small amount of yen.

Cruise or short-stay visitors may find tourist-oriented shops near ports that take foreign cash or cards. These are exceptions, and the rates and policies differ. For anything essential, such as trains or taxis, plan on yen or a card.

Travelers entering Japan with large sums should know that a customs declaration is required when carrying more than 1 million yen in cash, checks or similar items, according to JNTO. This guide shares general information; rules change, so confirm details with the official agency or provider before you act.

Assumptions that cause trouble

The first mistake is arriving with only foreign cash and no plan to convert it. If an exchange counter is closed or a queue is long, the first day can be stressful. A small amount of yen from home or an ATM withdrawal at the airport solves this.

The second is paying with a foreign note at a shop because the price looks convertible. Staff may refuse, or the rate may be poor. A third mistake is expecting vending machines, ticket machines and local buses to take foreign notes. These machines are set for yen, and many accept only certain notes or coins.

Another is relying on a single card. JNTO says international cards are generally accepted, but some shops show no logos and cards do not always work for short-distance train or subway fares. A backup card and some yen are better insurance.

Setting up payments before and after landing

Before leaving, decide on a mix: a small starter amount of yen, one or two cards, and a few larger foreign notes only if exchange is planned. Learn the PIN for cash withdrawals, and tell the bank about the trip if it asks for notice.

On arrival, use the airport exchange point or an ATM that accepts international cards. Keep the receipt. A transit IC card, such as Suica or Pasmo, can be topped up with cash at stations and used for trains, buses and many shops, which reduces the need for loose yen.

At the end of the trip, spend or exchange leftover yen, and keep any foreign currency for next time. Checking each provider's own page for the latest terms is the best way to avoid surprises.

Frequently Asked Questions

Do Japanese hotels accept US dollars?

Policies vary, and many hotels expect yen or a card. A few may accept foreign cash for a deposit or a bill, but rates differ. Asking at booking or check-in avoids surprises, and having a card on hand is a safe backup.

Can US dollars be used on trains in Japan?

Generally no. Ticket machines and gates are set up for yen and for transit IC cards. Travelers who arrive with only dollars should exchange them first, or use a card where accepted. JNTO notes that cards do not always work for short-distance rides.

Is it better to use a card than to exchange dollars?

It depends on the card's fees and the exchange counter's margin. Cards are generally accepted nationwide but not everywhere, so a mix of both is common. Comparing the issuer's fees with the counter's quoted rate gives the answer for each trip.

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