Japanese Yen Settlement Beginner's Guide | 4 Methods Cost Comparison, Telling You the Most Cost-Effective Approach Once

The Taiwan dollar has risen above 4.85 against the Japanese yen, sparking renewed interest in travel and yen investments. But is exchanging yen really that simple? Even just the currency exchange channels can have differences, and a 50,000 TWD transaction might end up costing an extra 1,500 TWD. We’ve compiled a comparison of the latest 4 currency exchange methods to help you find the most cost-effective route.

Why Now Is a Good Time to Exchange Yen

The Japanese yen is far more than just travel “pocket money.” It has practical value in daily life and investments.

Travel Spending: Cash payments in Japan still account for about 40%, especially in suburban areas where credit card penetration is less than 60%. Purchasing agents and online shopping often require direct yen payments.

Financial Markets: The yen is one of the three major safe-haven currencies globally (alongside USD and Swiss Franc). Japan’s economy is stable with low debt. During market turbulence, funds flow into safe assets — during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while stocks fell 10%. For Taiwanese investors, exchanging yen can hedge against Taiwan stock market volatility.

Additionally, Japan’s long-term ultra-low interest rate (just 0.5%) has fostered arbitrage trading: investors borrow yen at low interest, convert to higher-yield USD investments, with a US-Japan interest rate differential of about 4.0%. When risks rise and they close positions by buying back yen, holders of yen assets can profit.

Current Yen Exchange Rate｜Should You Exchange at 4.85?

As of December 10, 2025, the TWD/JPY rate is about 4.85 (1 TWD = 4.85 JPY), up 8.7% from 4.46 at the start of the year. In the second half of 2025, Taiwan’s foreign exchange demand grew by 25%, mainly driven by travel recovery and hedging needs.

Is it worth exchanging now? Yes, but consider doing it in batches.

Recently, the Bank of Japan Governor Ueda Kazuo’s hawkish comments pushed market expectations of rate hikes to 80%, with a December 19 meeting expected to raise rates by 0.25 bps to 0.75% (a 30-year high). Japanese government bond yields hit a 17-year high of 1.93%. USD/JPY has fallen from a high of 160 earlier this year to around 154.58, with short-term fluctuations possibly reaching 155, but medium to long-term forecasts suggest below 150.

Risk Warning: Closing arbitrage trades may cause short-term volatility of 2-5%. It’s advisable to buy in batches rather than all at once.

4 Practical Methods to Exchange Yen in Taiwan — Comparison

Many think currency exchange is just going to the bank counter, but the exchange rate difference can cost you several cups of bubble tea. The following four channels each have pros and cons. For a budget of 50,000 TWD, a mixed approach of “online exchange + foreign currency ATM” is recommended.

Method 1｜Counter Exchange (Traditional but Costly)

Bring cash TWD to a bank or airport counter to exchange for yen notes. Simple to operate, but using the “cash selling rate” (which is 1-2% worse than the spot rate) results in the highest overall cost.

Taiwan Bank December 10, 2025 rate: Cash selling rate 0.2060 (1 TWD = 4.85 JPY). Some banks charge fixed handling fees.

Advantages: Safe, reliable, full denominations, on-site assistance.
Disadvantages: Less favorable rates, limited operating hours (9:00-15:30), possible additional fees.
Suitable for: Beginners, small urgent needs (like at the airport).
Estimated cost (50,000 TWD): Loss of about 1,500-2,000 TWD.

Method 2｜Online Exchange + Counter Withdrawal (Balanced)

Use bank app or online banking to convert TWD to yen at the “spot selling rate” (about 1% better than cash selling rate), deposit into a foreign currency account. If cash is needed, withdraw at counters or foreign currency ATMs, incurring exchange spread and handling fees (starting around 100 TWD).

For example, E.SUN Bank’s app-based exchange incurs a fee equal to the difference between spot and cash rates, minimum 100 TWD.

Advantages: 24/7 operation, can average costs over multiple batches, better rates.
Disadvantages: Need to open a foreign currency account first, withdrawal fees (interbank 5-100 TWD).
Suitable for: Those experienced with forex, using foreign currency accounts, and possibly investing in yen deposits (annual interest 1.5-1.8%).
Estimated cost (50,000 TWD): Loss of 500-1,000 TWD.

Method 3｜Online Exchange + Airport Pickup (Most Recommended)

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website, then pick up in person with ID and transaction notice. Taiwan Bank and Mega Bank offer this service, with appointment options at airports.

Taiwan Bank’s “Easy Purchase” online exchange is fee-free (pay via TaiwanPay, only 10 TWD), with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank branches, 2 of which operate 24 hours.

Advantages: Better rates, often no handling fee, can choose airport pickup.
Disadvantages: Need to book in advance (1-3 days), pickup during business hours, branch cannot be changed.
Suitable for: Planned travelers who want to pick up cash at the airport.
Estimated cost (50,000 TWD): Loss of 300-800 TWD.

Method 4｜Foreign Currency ATM Instant Withdrawal (Convenient but Limited)

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen cash 24/7, supporting cross-bank transactions (from TWD account, only 5 TWD fee). Currency options are limited to major currencies, with about 200 locations nationwide.

SinoPac Bank’s foreign currency ATMs allow withdrawal from TWD accounts, with a daily limit of 150,000 TWD, no exchange fee. Note that Japan’s ATM withdrawal services will be adjusted by end of 2025, requiring an international card (Mastercard/Cirrus).

Withdrawal Limits (from October 2025):

Advantages: Instant withdrawal, high flexibility, low cross-bank fee.
Disadvantages: Limited locations, fixed denominations (1,000/5,000/10,000 JPY), cash may run out during peak hours.
Suitable for: Last-minute needs, those who can’t visit banks.
Estimated cost (50,000 TWD): Loss of 800-1,200 TWD.

Quick Decision Table for Currency Exchange Methods

Beginner Tip: Combining “online exchange + airport pickup” or “foreign currency ATM” can keep costs under 800 TWD.

Post-Exchange Investment Options — Don’t Let Yen Lie Idle

After exchanging yen, don’t leave it idle with no interest. Consider these 4 options:

1. Yen Fixed Deposit: Stable, open with E.SUN or Taiwan Bank, minimum 10,000 yen, annual interest 1.5-1.8%.
2. Yen Insurance Policy: Medium-term holding, Cathay or Fubon life savings insurance, guaranteed interest 2-3%.
3. Yen ETFs (00675U, 00703): Growth-oriented, Yuanta 00675U tracks yen index, can buy fractional shares via broker apps, suitable for dollar-cost averaging.
4. Yen Forex Trading: Swing trading, directly trade USD/JPY, EUR/JPY on forex platforms, with long/short positions, 24-hour operation, small capital needed.

Yen’s two-way volatility is influenced by BOJ rate hikes, but global arbitrage closing or geopolitical conflicts may suppress it. For investing, consider yen ETFs (management fee 0.4%) for diversification; for short-term or swing trading, try forex USD/JPY or EUR/JPY to capture rate movements.

Common Q&A

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

Cash Rate: The rate banks use for physical cash buy/sell, convenient for carrying cash, but usually 1-2% worse than the spot rate plus higher fees.

Spot Rate: The rate for FX market settlement within T+2, used for electronic transfers, more favorable (closer to international market price), but requires waiting for settlement.

Q. How much yen do I get for 10,000 TWD?

Using Taiwan Bank’s December 10, 2025 cash selling rate of 4.85: 10,000 × 4.85 = 48,500 yen.

If using spot selling rate 4.87, then 48,700 yen, about 200 yen (roughly 40 TWD) more.

Q. What do I need to bring for counter exchange?

ID + passport (foreigners bring passport + residence permit). For company accounts, bring business registration. For online booking, also bring transaction notice. Under 20 years old need parental consent; large amounts over 100,000 TWD may require source of funds declaration.

Q. Are there limits on foreign currency ATM withdrawals?

From 2025, most banks’ daily limits for their own cards are reduced to 100-150K TWD. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees. Cash may run out during peak hours, so plan ahead.

Summary — Two Core Principles for Yen Exchange

The yen has evolved from just travel “pocket money” to an asset with hedging and investment value. Whether for travel or hedging, following the principles of “batch exchange” and “not leaving it idle after exchange” can minimize costs and maximize returns.

Beginners are advised to start with the simplest methods: “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transfer yen into fixed deposits, ETFs, or swing trading based on needs. This way, you can enjoy cost-effective travel and add a layer of protection during global market turbulence.