Important before exchanging TWD to JPY: Revealing the costs of 4 major channels, is it worth entering now?

Is it a good time to exchange for Japanese Yen now?

As of December 10, 2025, the TWD to JPY exchange rate is about 4.85. Looking from another perspective—compared to 4.46 at the beginning of the year—the Yen has appreciated over 8.7% throughout the year. For Taiwanese investors, this already represents a considerable foreign exchange gain. Especially under the continuous depreciation pressure on the TWD, exchanging for Yen has become an option for many asset allocations.

According to market observations, Taiwan’s demand for Yen exchange has grown by approximately 25% in the second half of the year, driven by two factors: post-pandemic travel recovery and capital seeking safe-haven assets.

But whether it’s “worth it” depends on the situation. In the short term, the Yen remains quite volatile. The US has entered a rate-cut cycle, while the Bank of Japan (BOJ) is on the brink: recent hawkish comments by Governor Ueda Kazuo have pushed market expectations to 80%, with a projected rate hike of 0.25 basis points to 0.75% on December 19 (a 30-year high), and Japanese government bond yields have 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. In the short term, it may oscillate around 155, but the medium to long-term trend is forecasted to be below 150.

In simple terms: It’s a good time to exchange now, but don’t convert everything at once. Staggered operations are more prudent.

Why are so many people exchanging for Yen?

The Yen isn’t just “pocket money” for travel; there are deeper attractions behind it.

Travel and daily consumption: Tokyo, Osaka, Hokkaido—most stores at Japanese attractions only accept cash (credit card penetration is about 60%). Those buying Japanese cosmetics, fashion, or anime merchandise often need to pay directly in Yen. Long-term residents planning to stay in Japan also exchange in advance to avoid sudden exchange rate fluctuations increasing costs.

Financial market perspective: The Yen is one of the world’s three major safe-haven currencies (the other two are USD and Swiss Franc). Japan’s economy is stable, and government debt is relatively manageable. During market turbulence, funds tend to flow into Yen for hedging—during the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week, enough to buffer a 10% stock market decline. For Taiwanese investors, exchanging for Yen isn’t just for leisure; it can also hedge Taiwan stock market risks.

Additionally, Japan maintains an ultra-low interest rate policy (only 0.5%), making Yen a “financing currency.” Many investors borrow Yen at low interest, then switch to higher-yield USD investments (the USD/JPY interest rate differential is about 4.0%), and when risks increase, they close positions and buy back Yen, creating arbitrage trades.

Four main channels to exchange for Yen— which is the cheapest?

Many think exchanging Yen just means going to the bank, but the difference in exchange rates alone can cost you several cups of bubble tea. Using actual rates from December 2025, we’ve broken down the costs of four methods for you.

Method 1: Bank or airport counter exchange

This is the most traditional approach—simply bring TWD cash to a bank branch or airport counter to buy Yen cash. It’s straightforward, but uses the “cash selling rate” (1-2% worse than the spot rate), making it the most expensive overall.

For example, Taiwan Bank’s rate on December 10, 2025, at 9:18 AM was about 0.2060 TWD per Yen (i.e., 1 TWD = 4.85 Yen). Some banks also charge fixed handling fees.

Advantages: Safe and reliable, denominations up to 10,000 Yen, with on-site assistance.

Disadvantages: Worse exchange rate, limited to bank hours (9:00-15:30 on weekdays), possible additional handling fees.

Suitable for: Those unfamiliar with online operations or needing small amounts urgently at the airport.

(Source: Official websites, updated 2025/12/10)

Method 2: Online exchange, pick-up at counter

Use online banking or app to convert TWD into Yen and deposit into a foreign currency account, using the “spot sell rate” (about 1% better than cash selling rate). If you need cash, you can withdraw at counters or foreign currency ATMs, but will incur exchange spread handling fees (from about 100 TWD).

For example, after currency exchange via E.SUN Bank app, withdrawing Yen cash incurs a fee equal to the difference between spot and cash rates, minimum 100 TWD. This method suits observing exchange rate trends and entering in batches when the rate dips (e.g., TWD/JPY below 4.80).

Advantages: 24/7 operation, allows averaging costs through multiple entries, better rates.

Disadvantages: Need to open a foreign currency account first, withdrawal incurs additional fees. Some banks’ sub-accounts have withdrawal limits, affecting large exchanges.

Suitable for: Those experienced with forex, regularly using foreign currency accounts, and considering Yen deposits (current annual interest rate about 1.5-1.8%).

Method 3: Online currency settlement, airport pick-up

No need for a foreign currency account. Fill in currency, amount, pick-up 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 appointment options at airport branches.

Taiwan Bank’s “Easy Purchase” online currency settlement is fee-free (pay only 10 TWD via TaiwanPay), with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank outlets (2 open 24 hours), suitable for pre-departure planning.

Advantages: Better rates, often no handling fee, can specify airport pick-up, appointment reservation avoids cash shortage worries.

Disadvantages: Need to book 1-3 days in advance, pick-up during bank hours, branch cannot be changed.

Suitable for: Well-planned travelers who want to pick up cash at the airport.

Method 4: Foreign currency ATM withdrawal

Use a chip-enabled financial card to withdraw Yen cash at foreign currency ATMs, supporting 24-hour and interbank operations. Deducts from TWD account with only about 5 TWD interbank fee, no exchange fee. Supports major currencies (JPY, USD, EUR, etc.), with about 200 locations nationwide.

SinoPac’s foreign currency ATMs allow withdrawal from TWD accounts with a daily limit of 150,000 TWD. CTBC’s limit per transaction is 120,000 TWD, with a daily cap of 120,000 TWD, but note that from October 2025, third-category digital accounts’ limits are reduced to 100,000 TWD/day.

Advantages: Instant withdrawal, high flexibility, low cross-bank fees from TWD accounts.

Disadvantages: Limited locations and denominations (fixed at 1,000/5,000/10,000 Yen), cash may run out during peak times (especially at airports).

Suitable for: Those with no time to visit banks or needing urgent cash, but avoid waiting until the last minute.

Cost comparison of four exchange methods

Based on an estimated 50,000 TWD exchange in December 2025:

Our recommendation: For readers with a budget of 50,000 to 200,000 TWD, the most cost-effective approach is a combination of “online currency settlement + ATM withdrawal”—lock in most via online, supplement with ATM for urgent needs. This minimizes costs and maximizes flexibility.

After exchanging for Yen, don’t let your money sit idle

If you just keep Yen cash at home, it’s a waste. After exchange, there are several options to generate returns.

Yen fixed deposit: The most stable choice. E.SUN and Taiwan Bank offer foreign currency accounts, online deposits starting from 10,000 Yen, with annual interest rates of 1.5-1.8%. Low risk, suitable for conservative investors.

Yen insurance policies: Cathay and Fubon offer foreign currency savings insurance with guaranteed rates of 2-3%, suitable for medium-term holding (3-5 years). Higher interest than fixed deposits but less liquidity.

Yen ETFs: For example, Yuanta 00675U tracks Yen indices, can be bought as fractional shares via brokerage apps, with low regular investment costs. Management fee is 0.4% annually, suitable for dollar-cost averaging.

Forex trading: Direct trading of USD/JPY, EUR/JPY, etc., on forex platforms. Supports long and short positions, 24-hour trading, small capital required. Suitable for experienced traders, higher risk.

While Yen is a safe-haven, it also faces two-way volatility risk. BOJ rate hikes are positive, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) could weaken Yen. For investment purposes, diversified Yen ETFs are more stable.

Quick answers to common questions

What’s the difference between cash rate and spot rate?

Cash rate is the rate banks offer for physical cash transactions—immediate delivery, portable, but 1-2% worse than the spot rate, plus possible fees, making it more expensive. Spot rate is the foreign exchange market’s T+2 settlement rate, used for electronic transfers and foreign currency accounts, more favorable and closer to international market prices, but involves waiting for settlement.

How much Yen can I get for 10,000 TWD?

Using the formula: Yen amount = TWD amount × current rate. Based on Taiwan Bank’s December 10 rate, cash selling rate of about 4.85, 10,000 TWD ≈ 48,500 Yen. Using the spot rate (~4.87), about 48,700 Yen, difference roughly 200 Yen (about 40 TWD).

What should I bring for counter exchange?

ID + passport (foreigners bring passport + residence permit). For company exchange, bring business registration documents. If booked online, also bring transaction notice. Under 20 years old, need parental consent; over 100,000 TWD, may need to declare source of funds.

What’s the limit for foreign currency ATM withdrawal?

From October 2025, banks have adjusted limits: China Trust, for example, 120,000 TWD per transaction and per day; Taishin Bank 150,000 TWD per transaction and day; E.SUN Bank 50,000 TWD per transaction (50 banknotes), 150,000 TWD per day. Digital accounts in Category 3 are often reduced to 100,000-150,000 TWD/day. It’s recommended to diversify withdrawals or use your own bank card to avoid cross-bank fees.

The bottom-line mindset for exchanging Yen

The Yen has evolved from a simple travel currency to an asset with hedging functions and small-scale investment value. Whether you plan to travel to Japan next year or want to hedge against TWD depreciation by shifting some funds into Yen, following the principles of “staggered exchange + not leaving money idle after exchange” can minimize costs and maximize gains.

Beginners are advised to start with “Taiwan Bank online currency settlement + airport pick-up” or “foreign currency ATM,” then transfer Yen into fixed deposits, ETFs, or try forex trading based on actual needs. This way, you can enjoy more cost-effective travel and add a layer of protection during global market turbulence.