Yen Exchange Guide: Comparison of Four Major Channels, No Fee Foreign Currency Withdrawal Plan Announced

The exchange rate of TWD to JPY has reached 4.85, and the crowd of people exchanging yen is picking up again. Are you looking to enter before the TWD depreciates further? Or just planning your cash budget for your trip to Japan next year? Whatever your purpose, the key is to find the lowest-cost currency exchange channel—just the exchange rate difference could cost you hundreds of dollars more.

We have compiled the four most practical ways to exchange JPY in Taiwan, along with the latest rates and fees from various banks, so you can understand how to exchange most cost-effectively in one go.

Why is it worth exchanging for yen? Two main reasons

Rigid demand for travel and consumption

Cash usage in Japan remains high (credit cards only 60%), with most stores in Tokyo shopping districts, Hokkaido skiing resorts, and Okinawa resorts only accepting cash. Plus, for purchasing, Japanese online shopping, study abroad, and working holidays, JPY has become the most frequently exchanged foreign currency by Taiwanese.

Financial asset for global hedging

The yen is one of the three major safe-haven currencies alongside USD and CHF. Japan’s economy is stable, debt is manageable, and during market turbulence, funds flow into the yen—during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, effectively buffering stock market declines. For Taiwanese investors, exchanging for yen is not just for travel but also a tool to hedge against Taiwan stock market volatility.

Additionally, Japan’s long-term ultra-low interest rate (0.5%) makes the yen a “funding currency,” with a USD/JPY interest rate differential of 4.0%, allowing many investors to exploit this arbitrage space.

Four ways to exchange JPY explained in detail

Method 1: Bank counter cash exchange—most traditional but highest cost

Bring TWD directly to a bank or airport counter to buy cash. Simple operation but using the “cash selling rate” (1-2% worse than the spot rate), resulting in the largest overall loss.

Taiwan Bank as of December 10, 2025 rate example: Cash selling rate: about 0.2060 TWD per 1 JPY (i.e., 1 TWD = 4.85 JPY)

Main bank rates and fees comparison

Pros and cons

• ✓ Full denominations, safe and reliable, staff assistance available
• ✗ Worst exchange rate, limited business hours, possible additional fees

Suitable for: Those unfamiliar with online operations, needing small cash urgently (e.g., emergency at the airport)

Method 2: Online currency transfer—better rates but withdrawal fees apply

Use app or online banking to convert TWD into JPY and deposit into a foreign currency account. Using “spot sell rate” (about 1% better than cash selling rate). If you need cash, you can withdraw at counters or ATMs, but additional fees will be incurred.

Pros and cons

• ✓ 24/7 operation, can split into batches for average cost, better rate than counter
• ✗ Need to open a foreign currency account first, withdrawal incurs fees (interbank 5-100 NT$)

Suitable for: Readers experienced in forex operations, planning to invest in JPY deposits

Method 3: Online currency exchange reservation with counter pickup—completely free but requires appointment

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notice to pick up at the counter. Taiwan Bank and Mega Bank offer this service, with options to reserve airport branches.

Taiwan Bank’s “Easy Purchase” online currency exchange, paid via Taiwan Pay, costs only 10 NT$ (almost free), with about 0.5% exchange rate advantage. Taoyuan Airport has 14 Taiwan Bank outlets (2 open 24 hours), making it the best pre-departure reservation plan.

Pros and cons

• ✓ Favorable exchange rates, often no service fee, airport pickup available, foreign currency pickup fee waived
• ✗ Need to book in advance (1-3 days), pickup time limited to business hours, branch changes not allowed

Suitable for: Travelers with a planned schedule who want to pick up cash directly at the airport

Method 4: Foreign currency ATM withdrawal—24/7 convenience but limited locations

Use chip-enabled financial cards at foreign currency ATMs to withdraw cash in JPY. Supports 24-hour operation. E.SUN Bank’s foreign currency ATMs allow withdrawal from TWD accounts, with a daily limit of 150,000 NT$, and no currency exchange fee during withdrawal, cross-bank fee only 5 NT$. However, ATM locations are limited (~200 nationwide), mainly supporting mainstream currencies.

Note: Japan’s ATM withdrawal services will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus). During peak times (especially airports), cash may run out, so avoid last-minute withdrawals.

ATM withdrawal limits per bank

Pros and cons

• ✓ 24/7 instant withdrawal, foreign currency withdrawal fee waived (only 5 NT$ cross-bank), high flexibility
• ✗ Limited locations, fixed denominations (1,000/5,000/10,000 JPY), cash may be sold out during peak times

Suitable for: Those with no time to visit banks, needing urgent cash

Cost comparison of the four methods (estimating for 50,000 NT$ exchange)

For beginners: Use a mixed approach of “online currency exchange + ATM withdrawal” for 50k-200k NT$, or directly combine “Taiwan Bank Easy Purchase + airport withdrawal” to enjoy favorable rates and low/no withdrawal fees.

Is it worthwhile to exchange for yen now? Market observation

As of December 10, 2025, TWD/JPY is about 4.85, appreciating 8.7% from the start of the year at 4.46. For Taiwanese investors, the exchange gain is quite significant. In the second half of the year, Taiwan’s forex demand increased by 25%, mainly driven by travel recovery and hedging needs.

Exchange rate trend analysis

The hawkish comments from Bank of Japan Governor Ueda Kazuo have pushed up rate hike expectations to 80%, with a scheduled rate increase of 0.25 basis points to 0.75% at the December 19 meeting (a 30-year high). Japanese bond yields hit a 17-year high of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now, with short-term fluctuations around 155, but medium to long-term forecasts suggest below 150.

With the US entering a rate cut cycle, the yen as a safe-haven currency may be supported. However, short-term risks include global arbitrage unwinding and geopolitical conflicts, which could cause 2-5% volatility.

Strategy suggestion: Gradually enter the market, avoid all-in exchanges. For investment purposes, yen is suitable for hedging Taiwan stock market fluctuations but beware of short-term risks.

Post-exchange yen allocation

Don’t let the yen sit idle (interest-free). You can shift to steady income or growth investments.

Four common options

1. Yen fixed deposit (conservative) E.SUN/ Taiwan Bank open foreign currency accounts, deposit online, minimum 10,000 yen, annual interest rate 1.5-1.8%.

2. Yen insurance policy (medium-term hold) Cathay/Fubon life savings insurance, guaranteed interest rate 2-3%.

3. Yen ETF (growth) Yuan Da 00675U, 00703, tracking yen index, buy fractional shares via broker app, suitable for dollar-cost averaging.

4. Yen forex trading (swing trading) Trade USD/JPY or EUR/JPY directly on forex platforms, with long/short options, 24-hour trading, small capital required.

Yen’s two-way volatility, rate hikes support but global arbitrage unwinding or geopolitical conflicts may suppress it. For investment, yen ETFs (like 00675U, with 0.4% annual management fee) can diversify risk.

Quick FAQ

Q. What is the difference between cash rate and spot rate?

Cash rate applies to physical cash (bills/coins), convenient for immediate use but usually 1-2% worse than the spot rate. Spot rate is the foreign exchange market’s T+2 settlement rate, used for electronic transfers and cashless transactions, more favorable (close to international market price).

Q. How much yen can I get for 10,000 NT$?

Calculation: Yen amount = TWD amount × current rate (TWD/JPY)

Using Taiwan Bank’s cash selling rate 4.85, 10,000 NT$ ≈ 48,500 JPY. Using spot selling rate 4.87, ≈ 48,700 JPY, about 200 yen difference (~NT$40).

Q. What ID do I need for counter exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. If booking online, also bring transaction notice. Under 20 need parent’s consent; large amounts (>100,000 NT$) may require source of funds declaration.

Q. Are there withdrawal limits for foreign currency ATMs?

From October 2025, many banks will tighten anti-fraud measures, with digital account limits reduced to 100,000 NT$ per day. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees. Cash may run out during peak times, plan ahead.

Summary: New mindset for exchanging yen

Yen is no longer just “pocket money” for travel but also an asset with hedging and investment value. Whether you’re preparing for next year’s trip or aiming to hedge against TWD depreciation, following the principles of “gradual exchange + don’t leave it idle” can minimize costs and maximize gains.

For beginners, starting with “Taiwan Bank Easy Purchase online exchange + airport pickup” or “foreign currency ATM fee-free withdrawal” is simplest. Then, transfer yen into fixed deposits, ETFs, or swing forex trading based on your needs. This way, you can enjoy more cost-effective travel and add a layer of protection during global market turbulence.