Japanese Yen Exchange Guide: 4 Major Channels Cost Comparison, Master the Timing to Save Thousands

Is it really worthwhile to exchange for Japanese yen now?

As of December 10, 2025, the TWD to JPY exchange rate reached 4.85, up 8.7% from 4.46 at the beginning of the year. This means investors’ currency conversion gains are quite substantial. Especially as the TWD faces depreciation pressures, allocating assets in JPY has become an option for many.

The Bank of Japan is on the verge of raising interest rates—recent hawkish comments by Governor Ueda Kazuo have pushed market expectations to 80%, with a rate hike of 0.25 bps to 0.75% expected at the December 19 meeting (a 30-year high). Japanese bond yields have hit a 17-year high of 1.93%. These factors support the yen’s trend; short-term fluctuations hover around 155, but medium to long-term forecasts suggest it will operate below 150.

Conclusion: It’s worthwhile to exchange for yen now, but you need to do it in batches and choose the right channels. Just by selecting different exchange methods, a 50,000 TWD exchange can save you between 500-2000 NT dollars—equivalent to a few cups of bubble tea.

Why exchange for yen? It’s not just for travel, but also an investment option

Many think the yen is only used for overseas trips, but that’s not the case. The yen combines practicality for daily use and financial attributes:

Travel and Consumption: Japan still predominantly uses cash (credit card penetration is only 60%), whether shopping in Tokyo, skiing in Hokkaido, or vacationing in Okinawa, cash payments are necessary. Resellers and online shoppers also need yen to pay merchants or Japanese websites directly.

Financial Hedging: The yen is one of the world’s three major safe-haven currencies (along with USD and Swiss Franc) due to Japan’s stable economy and low debt. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, effectively buffering a 10% stock market decline. For Taiwanese investors, holding yen assets can hedge against Taiwan stock market risks.

Arbitrage Opportunities: Japan maintains ultra-low interest rates (0.5%), making the yen a “funding currency.” Investors can borrow yen at low interest, convert to USD or other high-yield currencies for arbitrage. For example, with a current interest rate differential of about 4.0% between Japan and the US—borrowing yen to invest in USD yields significant spreads. When risks rise, closing positions by buying back yen is a common institutional strategy.

Four exchange channels with astonishing cost differences

Method 1: Bank counter or airport exchange—most traditional but most expensive

Carrying TWD to a bank or airport counter to buy cash is straightforward but incurs high costs due to “cash selling rate” (about 1-2% worse than spot rate). For example, Taiwan Bank’s cash selling rate on December 10, 2025, is about 0.2060 TWD/JPY (4.85 JPY/TWD). Some banks also charge handling fees.

Exchanging 50,000 TWD could lose about 1500-2000 NT dollars, suitable only for small, urgent needs or airport emergencies. Some banks like E.SUN, E.SUN Bank, Cathay United Bank charge an additional 100-200 NT dollars in fees; check beforehand.

Advantages: Safe, full denominations, on-site assistance.
Disadvantages: Poor exchange rate, limited business hours (9:00-15:30 on weekdays), extra fees.

Method 2: Online currency exchange to deposit account—ideal for long-term investment

Use bank app or online banking to convert TWD into yen and deposit into a foreign currency account, using “spot selling rate” (about 1% better than cash rate). If you need cash withdrawal, visit a counter or use foreign currency ATMs, but there will be a currency conversion fee (minimum 100 NT dollars).

Suitable for monitoring exchange rates and entering in batches at low points. For example, when TWD/JPY drops below 4.80, gradually buy in, lowering the average cost. You can also transfer yen into fixed deposits (annual interest rate about 1.5-1.8%) or yen ETFs (like Yuanta 00675U) for passive income.

Exchanging 50,000 TWD could lose about 500-1000 NT dollars.

Advantages: 24/7 operation, batch averaging, better rates, flexible investment options.
Disadvantages: Need to open a foreign currency account first, withdrawal fees apply.

Method 3: Online currency purchase with pre-arranged pickup—best before traveling

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After completing the transfer, bring ID and transaction notice to pick up in person. Bank of Taiwan’s “Easy Purchase” and Mega Bank offer this service, allowing reservation at airport branches, perfect for planned trips.

Bank of Taiwan’s online currency purchase has no handling fee (only 10 NT dollars via Taiwan Pay), with about 0.5% better exchange rate. Taoyuan Airport has 14 Bank of Taiwan branches (including 2 24-hour branches), making airport pickup very convenient.

Exchanging 50,000 TWD could lose about 300-800 NT dollars, offering the best overall cost control.

Advantages: Better rates, often no fees, convenient airport pickup, no foreign currency account needed.
Disadvantages: Need to book 1-3 days in advance, pickup during bank hours, reservations cannot be changed.

Method 4: Foreign currency ATM—instant withdrawal 24/7

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen cash, supporting 24-hour operation and interbank transactions (only 5 NT dollars fee for cross-bank deduction). E.SUN Bank’s foreign currency ATMs allow direct withdrawal from a TWD account, with a daily limit of 150,000 NT dollars and no currency exchange fee.

However, foreign currency ATMs are limited (~200 nationwide), with restrictions on denominations (usually only common bills like 1000/5000/10000 yen). During peak times (especially at busy airports), cash may run out, so avoid last-minute withdrawals before travel.

Exchanging 50,000 TWD could lose about 800-1200 NT dollars.

Advantages: Instant 24/7 withdrawal, high flexibility, low interbank fees.
Disadvantages: Few locations, fixed denominations, risk of cash shortages during peak times.

Cost comparison of the four methods

Beginner tip: For budgets of 50k-200k NT dollars, the most cost-effective combo is “online currency purchase + ATM,” using online exchange to get cash for travel and small additional needs via ATM.

Currency exchange knowledge: Cash rate vs. spot rate

Cash rate (Cash Rate) applies to physical cash buying and selling, with the advantage of immediate delivery but 1-2% worse than spot rate. Spot rate (Spot Rate) is used for electronic transfers and foreign currency accounts, settled T+2, and closer to international market prices.

How much yen for 10,000 NT dollars? Using Taiwan Bank’s cash selling rate of 4.85, you get about 48,500 yen; with the spot rate of 4.87, you get about 48,700 yen—only a 200 yen difference (roughly NT$40).

Next steps after exchanging for yen: Make your money work

After exchanging yen, leaving it idle without interest isn’t ideal. Consider these investment options:

Yen fixed deposit: The most stable, available at E.SUN/Taiwan Bank with foreign currency accounts, starting from 10,000 yen, with annual interest of 1.5-1.8%.

Yen insurance policies: Medium-term holdings, such as Cathay or Fubon’s yen savings insurance, with guaranteed interest rates of 2-3%.

Yen ETFs: Growth options like Yuanta 00675U tracking yen index, purchasable in broker apps via fractional shares, with an annual management fee of 0.4%.

Forex trading: Advanced option—trade USD/JPY or EUR/JPY directly on forex platforms. This captures cross-currency fluctuations, with the advantage of both long and short positions, 24-hour trading, and small capital requirements.

While yen has hedging features, it also fluctuates bidirectionally—interest rate hikes are bullish, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) may depress it. Beginners should start with fixed deposits or ETFs, gradually exploring forex trading.

Common questions about opening foreign currency accounts and ATM withdrawals

What documents are needed? For in-person foreign currency services, residents need ID + passport; minors under 20 require parental consent and a letter. Online reservations require a transaction notice. Large exchanges (over 100,000 NT dollars) may need source of funds declaration.

What is the ATM withdrawal limit? After 2025 reforms, limits vary by bank: CTBC allows up to 120,000 NT dollars per day; Taishin Bank 150,000 NT dollars; E.SUN Bank 150,000 NT dollars (including debit). Digital accounts (Type 3) often limit to 100,000 NT dollars daily due to fraud prevention. It’s recommended to split withdrawals or use your bank’s card to avoid cross-bank fees.

Summary: Timing and methods save thousands on currency exchange

Yen is no longer just for travel pocket money but also an asset with hedging and investment value. Whether traveling or asset allocation, following the “batch exchange + immediate investment” principle can lower costs and increase returns.

For beginners, the simplest approach is “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM.” Then, transition into fixed deposits, ETFs, or forex trading based on needs. This way, you save money on trips and gain extra protection during global market turbulence.