Japanese Yen Exchange Guide: Analyzing the Costs of 4 Channels, Which One Saves the Most Money?

December 2025, the Taiwan dollar to Japanese yen is about 4.85, up 8.7% from 4.46 at the beginning of the year. As the travel boom in Japan recovers and risk aversion demand heats up, many people are starting to plan for currency exchange. But did you know? Exchanging 50,000 TWD using the wrong method could cost you an extra 1,500-2,000 NT dollars.

Why should you pay attention to JPY exchange now?

From travel to investment, the Japanese yen’s value has gone beyond the scope of “spending money abroad.”

Travel and daily consumption perspective
Cash remains the main payment method across Japan (credit card penetration is only 60%). From shopping in Tokyo, skiing in Hokkaido, to vacations in Okinawa, most merchants only accept cash. Buyers and Japanese online shoppers also need to pay in yen regularly. International students or working holidaymakers often exchange currency in advance to lock in the exchange rate.

Financial asset perspective
The yen is one of the world’s three major safe-haven currencies (alongside the USD and Swiss franc). Japan’s economy is stable, debt is manageable, and during market turbulence, funds flow into the yen for safety—taking the 2022 Russia-Ukraine conflict as an example, the yen appreciated 8% in a week, while stocks fell 10%. For Taiwanese investors, exchanging yen is not just for leisure but also for hedging Taiwan stock market risks.

Additionally, the Bank of Japan’s rate hike expectations are heating up: Governor Ueda Kazuo recently made hawkish comments pushing the rate hike expectation to 80%, with a projected increase to 0.75% at the December 19 meeting (a 30-year high). Japanese government bond yields have hit a 17-year high of 1.93%. USD/JPY has fallen from the high of 160 at the start of the year to 154.58, with a short-term rebound possibly to 155, but medium to long-term forecasts suggest it will fall below 150.

Four main channels for Taiwan banks to exchange yen

Many think there is only one way—over-the-counter currency exchange—but in fact, just the difference in exchange rates can save you several times the cost of a bubble tea. Below, we analyze the costs and features of each channel.

First: Bank over-the-counter cash exchange

Bring cash TWD to a bank branch or airport counter to exchange for yen cash. This is the most traditional method but also the most expensive—using the “cash selling rate,” which is about 1-2% worse than the spot rate, plus some banks charge additional handling fees.

Real rate example
According to Taiwan Bank’s rate on December 10, 2025, at 9:18 AM, the cash selling rate is about 0.2060 TWD per yen (about 4.85 yen per TWD). Exchanging 50,000 TWD yields about 48,500 yen, costing you roughly 1,500-2,000 NT dollars in losses.

Bank handling fees vary: E.SUN Bank and Taishin Bank add about 100 NT dollars; Cathay United Bank charges at least 200 NT dollars.

Advantages: Safe, full denominations (1,000/5,000/10,000 yen options), staff assistance on-site.
Disadvantages: Higher exchange rate cost, limited business hours (weekday 9:00-15:30), additional handling fees.
Suitable for: Those unfamiliar with online operations or needing small, urgent exchanges (e.g., at the airport).

Second: Online exchange + cash withdrawal at counter or ATM

Use bank app or online banking to convert TWD into yen and deposit into a foreign currency account, enjoying about 1% discount on the spot selling rate. If cash is needed, withdraw at counters or foreign currency ATMs, but this incurs a currency exchange fee (minimum 100 NT dollars).

E.SUN Bank, for example, charges a fee based on the difference between the spot and cash exchange rates after online conversion. This method is suitable for observing exchange rate trends and entering in batches at low points (e.g., when TWD/JPY is below 4.80). Cost for exchanging 50,000 TWD is about 500-1,000 NT dollars.

Advantages: 24-hour operation, ability to buy in batches for average cost, better exchange rates.
Disadvantages: Need to open a foreign currency account first, withdrawal fees (5-100 NT dollars cross-bank).
Suitable for: Experienced forex investors, those with foreign currency accounts, can also invest in yen fixed deposits (annual interest rate about 1.5-1.8%).

Third: Online currency settlement + airport pickup

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s official website. After remittance, bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” online settlement is fee-free (pay only 10 NT dollars via Taiwan Pay), with about 0.5% better exchange rate.

Taoyuan Airport has 14 Taiwan Bank outlets (including 2 24-hour branches), making it the most convenient pre-departure option. Cost for exchanging 50,000 TWD is about 300-800 NT dollars.

Advantages: Better exchange rates, often no handling fee, designated airport pickup, saving time.
Disadvantages: Need to book in advance (1-3 days), pickup during bank hours, branches cannot be changed.
Suitable for: Planning travelers who want to pick up cash directly at the airport.

Fourth: Foreign currency ATM withdrawal of yen

Use a chip-enabled bank card to withdraw yen cash at foreign currency ATMs, supporting 24-hour and cross-bank operations. Deducts only 5 NT dollars per transaction from your TWD account, with no currency exchange fee. Taishin Bank’s foreign currency ATMs allow withdrawal of yen from TWD accounts, with a daily limit of 150,000 NT dollars. Cost for exchanging 50,000 TWD is about 800-1,200 NT dollars.

Advantages: Instant withdrawal, high flexibility, low fees from TWD account.
Disadvantages: Limited locations (~200 nationwide), fixed denominations (1,000/5,000/10,000 yen), cash may run out during peak times.
Suitable for: Those who don’t have time to visit banks or need urgent cash.

2025 New Regulation Reminder: From October, banks have strengthened anti-fraud measures. The daily withdrawal limit for third-party digital accounts has been reduced to 100,000-150,000 NT dollars. It is recommended to diversify withdrawals or use your own bank card to avoid cross-bank fees, and plan ahead during peak times.

Cost comparison of the four channels

Is it cost-effective to exchange yen now?

Short-term judgment: Yes, but operate in batches.

The USD/JPY exchange rate is still fluctuating. The US rate hike cycle supports the yen, and the Bank of Japan’s rate hike expectations are rising. Short-term, USD/JPY may rebound to 155, but medium to long-term forecasts suggest it will fall below 150. In the second half of 2025, Taiwan’s currency exchange demand increased by 25%, mainly driven by travel recovery and risk hedging.

Investment perspective: Suitable for hedging Taiwan stocks, but beware of arbitrage unwinding risks.

As a safe-haven currency, the yen can be added to investment portfolios. However, unwinding arbitrage trades may cause fluctuations of 2-5%, so short-term risks should be considered. It’s recommended to buy in batches rather than all at once.

Asset allocation after exchanging yen

Don’t let the yen you bought sit idle without interest. Depending on your risk appetite, consider the following options:

Conservative: Yen fixed deposit
Open a foreign currency account with E.SUN Bank or Taiwan Bank, deposit online. Minimum 10,000 yen, annual interest rate 1.5-1.8%.

Mid-term holding: Yen insurance policy
Cathay or Fubon Life offer savings insurance with guaranteed interest rates of 2-3%.

Growth-oriented: Yen ETFs
For example, Yuanta 00675U tracks the yen index, can be bought as fractional shares via brokerage apps, suitable for dollar-cost averaging, with an annual management fee of 0.4%.

Swing trading: Forex trading platforms
Trade USD/JPY or EUR/JPY directly, with long and short options, 24-hour trading, small capital can participate.

The BOJ’s rate hikes are positive, but global arbitrage unwinding or geopolitical conflicts may still depress the exchange rate. Multi-asset allocation can effectively diversify risks.

Quick FAQs

Q: What’s the difference between cash rate and spot rate?
Cash rate (Cash Rate) applies to physical cash buying and selling, with the advantage of immediate delivery but 1-2% worse than the spot rate, plus higher handling costs. Spot rate (Spot Rate) is used for T+2 settlement of non-cash transactions, closer to international market prices, but involves waiting for settlement.

Q: How much yen do I get for 10,000 TWD?
Using the current exchange rate: 【Yen amount = TWD amount × current rate】. Taiwan Bank’s cash selling rate is about 4.85, so 10,000 TWD ≈ 48,500 yen; spot selling rate about 4.87, so ≈ 48,700 yen, a difference of about 200 yen (roughly 40 TWD).

Q: What should I bring for over-the-counter exchange?
Taiwanese: ID card + passport; foreigners: passport + residence permit; companies: business registration. For online booking, bring transaction notice. Under 20 years old need parental consent; amounts over 100,000 TWD may require source of funds declaration.

Q: Is there a withdrawal limit at foreign currency ATMs?
From October 2025, most banks set a daily limit of 120,000-150,000 NT dollars for their own cards; other banks depend on the issuing bank. Using your own bank card is recommended to save cross-bank fees (5 NT dollars per transaction). Plan ahead to avoid cash shortages during peak times.

Summary

The yen is no longer just for travel spending money but also a safe-haven asset with small investment value. Whether traveling or hedging against TWD depreciation, mastering “batch exchange + not sitting idle after exchange” can minimize costs and maximize gains.

Beginners are advised to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then transition into fixed deposits, ETFs, or swing trading based on needs. This way, you can enjoy favorable rates and have an extra layer of protection during global market turbulence.