NT$50,000 exchanged for JPY surprisingly loses 1,500 yen? An article explaining the most cost-effective exchange method

TWD to JPY has already fallen to 4.85, and more people are interested in traveling abroad or investing in Japanese yen. But did you know? Choosing the wrong exchange method can cost you an extra cup of bubble tea just in exchange rate differences. Even more outrageous, exchanging 50,000 TWD at the counter may result in a loss of 1,500-2,000 TWD, while using the right method can limit the loss to only 300-800 TWD.

We tested the rates and fees of major banks in Taiwan and calculated the actual costs of four exchange channels for you.

Is it really worth exchanging for Japanese yen?

Many think that JPY is just “pocket money” for travel, but it has long been upgraded to a hedge asset.

Travel and daily consumption: Most convenience stores, restaurants, and drugstores in Japan still only accept cash (credit card penetration is about 60%), and purchasing Japanese goods often requires direct payment in yen.

More attractive from an investment perspective: JPY is one of the world’s three major safe-haven currencies (the other two are USD and Swiss Franc). The Bank of Japan’s interest rate is extremely low (only 0.5%), making it a financing tool for arbitrage trading. Many investors borrow low-interest yen to chase higher yields in USD (the USD/JPY interest rate differential is as high as 4.0%). During market turbulence (like the Russia-Ukraine conflict in 2022), capital flooded into yen as a safe haven—JPY appreciated 8% in a week, enough to buffer stock market declines.

From the perspective of TWD depreciation pressure, exchanging for yen is not just about traveling but also a strategy to hedge against Taiwan stock risks.

Comparing 4 real costs of exchanging yen in Taiwan

1st place: Online currency exchange, airport pickup (most recommended)

Estimated cost: 300-800 TWD loss on 50,000 TWD

Taiwan Bank offers “Easy Purchase” online currency exchange service, no need for foreign currency accounts. Just fill in the amount, branch, and date on the official website, complete the transfer, then pick up with ID at the branch. Best of all, paying via TaiwanPay costs only 10 TWD handling fee, with about 0.5% better exchange rate.

Taoyuan Airport has 14 Taiwan Bank counters (including 2 open 24 hours). Reserve a day in advance, pick up yen cash directly at the airport the next day—saving time and effort. Mega International Bank also offers similar services.

Suitable for: Travelers planning to go abroad who want to minimize costs.

2nd place: Foreign currency ATM withdrawal (most flexible)

Estimated cost: 800-1200 TWD loss on 50,000 TWD

Use a chip-enabled debit card to withdraw yen cash from foreign currency ATMs at banks, anytime 24/7. Only 5 TWD cross-bank fee deducted from your TWD account. E.SUN Bank’s foreign currency ATMs have a daily limit of 150,000 TWD and no currency exchange fee.

Disadvantages: Only about 200 foreign currency ATMs nationwide, and cash may run out during peak hours. But for those who don’t have time to visit banks or need cash urgently, this is the most convenient option.

Suitable for: Busy workers needing instant cash.

3rd place: Online banking exchange, then pick up cash at counter or ATM

Estimated cost: 500-1000 TWD loss on 50,000 TWD

Use bank app or online banking to convert TWD to JPY and deposit into a foreign currency account (using “spot sell rate”), about 1% better than cash exchange rates. To withdraw cash, go to a counter or foreign currency ATM, but extra withdrawal fees apply (around 100 TWD or more).

Ideal for investors wanting to observe exchange rate trends and buy in batches. When TWD/JPY drops below 4.80, buy gradually to average the cost. After purchasing, you can also transfer directly into a yen fixed deposit to earn interest (current annual rate about 1.5-1.8%).

Suitable for: Forex experienced investors planning long-term holdings.

4th place: Cash exchange at counters (most traditional, highest cost)

Estimated cost: 1500-2000 TWD loss on 50,000 TWD

Bring cash TWD directly to a bank or airport counter to exchange for yen cash. Although simple, using “cash selling rate” is about 1-2% worse than the spot rate, plus banks may charge handling fees, making it the most expensive option.

Based on the rate on December 10, 2025, Taiwan Bank’s cash selling rate is about 0.2060 TWD per yen (1 TWD ≈ 4.85 JPY). Some banks like E.SUN and E.SUN Bank charge an additional 100 TWD per transaction; Cathay United Bank charges 200 TWD.

Suitable for: Those with small, urgent needs or unfamiliar with online procedures.

Is it worthwhile to exchange for yen now?

Simple answer: Yes, but do it in batches.

On December 10, 2025, TWD/JPY hit 4.85, up 8.7% from 4.46 at the start of the year. For Taiwanese investors, the exchange gain is significant, especially under the ongoing TWD depreciation pressure.

But the second half of the year shows even more interesting data—Taiwan’s yen exchange demand grew by 25%, driven not just by travel recovery but also by investors hedging risks with yen.

Will the exchange rate move further? Of course. BOJ Governor Ueda recently adopted hawkish comments, and the market expects a 0.25 bps rate hike at the December 19 meeting to 0.75% (a 30-year high). Japanese government bond yields have hit a 17-year high of 1.93%. USD/JPY has fallen from 160 to 154.58 since the start of the year. Short-term fluctuations around 155 are possible, but medium to long-term forecasts suggest further decline.

Be cautious with arbitrage trades: Many investors borrow yen at low interest to invest in higher-yield USD. When risks rise, they close positions en masse, causing short-term volatility of 2-5% in yen. So, batching your exchange is not nonsense but a risk management necessity.

After exchanging yen, let your money sit

Once you have yen, don’t leave it idle (interest-free is really a loss). Based on your risk appetite, here are some options:

Conservative: Yen fixed deposit
Open a foreign currency account at E.SUN or Taiwan Bank, starting from 10,000 yen, with an annual interest rate of 1.5-1.8%. Suitable for steady growth.

Mid-term: Yen insurance policy
Buy a savings insurance policy from Cathay or Fubon, with guaranteed interest rates of 2-3%, plus protection.

Growth: Yen ETFs
Yuanta 00675U or other yen-related ETFs tracking the yen index. You can buy fractional shares via brokerage apps, suitable for dollar-cost averaging. Management fee is only 0.4% annually, diversifying risk.

Swing trading: Forex trading
If you want to catch exchange rate swings, trade USD/JPY or EUR/JPY directly on forex platforms. Advantages include two-way trading, 24/7 access, zero commissions, low spreads, and small capital requirements. But risks are high; beginners should be cautious.

Key point: While yen is a safe haven, its volatility is normal. BOJ rate hikes are positive, but global arbitrage unwinding or geopolitical tensions can still push yen lower.

Quick FAQs

Q: What’s the difference between cash rate and spot rate?
Cash rate is the bank’s buy/sell rate for physical cash, used for travel exchange, paid on the spot, but usually 1-2% worse than market rates. Spot rate is the foreign exchange market’s T+2 rate, used for electronic transfers and import/export, more favorable but settled after 2 days. Simply put, cash rate is more expensive, spot rate is cheaper.

Q: How much yen can I get with 10,000 TWD?
Using Taiwan Bank’s rate on December 10, 2025 (cash sell 4.85), about 48,500 yen. Using the spot rate (~4.87), about 48,700 yen—difference of roughly 200 yen (about 40 TWD).

Q: What do I need to bring to exchange foreign currency?
Taiwanese: ID card + passport; foreigners: passport + residence permit. If pre-booked online, also bring transaction notice. Under 20? Need parent’s consent. Over 100,000 TWD? May need to declare source of funds.

Q: What’s the daily withdrawal limit at foreign currency ATMs?
Varies by bank. CTBC, Taishin Bank: about 120-150K TWD equivalent. E.SUN Bank: 150K TWD including debit card. Cross-bank cards depend on issuing bank. It’s recommended to split withdrawals or use your own bank card to avoid extra fees (5 TWD per transaction). During peak hours, cash may run out; plan ahead.

Conclusion

Yen is no longer just “pocket money” for travel but a hedge and investment asset. Whether traveling or hedging risks, following the principles of “batch exchange” and “don’t leave money idle” can minimize costs and maximize gains.

Beginners should start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then shift into fixed deposits, ETFs, or forex swing trading based on needs. This way, you not only save on travel costs but also gain protection during market turbulence. The logic for exchanging other currencies like HKD or other foreign currencies is similar—choose the right exchange channels, monitor rates, and buy in batches.