Japanese Yen Exchange Rate Guide: Is Buying via Online Banking Worth It? 4 Methods Tested and Compared

NTD to JPY reaches 4.85, and travel and investment in Japanese yen are booming again. But how to exchange yen without getting ripped off? We compare the latest 4 currency exchange methods through real tests, so you can understand them all at once.

Why exchange for Japanese yen?

Many Taiwanese only know they need to exchange yen when traveling to Japan, but in fact, the use of yen extends far beyond that.

Travel and daily expenses: Japan’s cash culture is deeply ingrained; many small shops and rural areas do not accept cards (credit card penetration is only about 60%). Buying cosmetics, shopping at department stores, or purchasing Japanese products through proxy services usually requires cash in yen or transfers in yen.

From a financial asset perspective: Yen, along with USD and Swiss Franc, is one of the three major safe-haven currencies globally. When the stock market crashes or geopolitical conflicts escalate, smart investors will convert some funds into yen to hedge risks. During the Russia-Ukraine war in 2022, the yen appreciated by 8% in a week, successfully mitigating stock declines. For Taiwanese investors, holding yen isn’t just for leisure; it also helps hedge against Taiwan stock market volatility.

Arbitrage opportunities: The Bank of Japan has maintained an ultra-low interest rate (0.5%) for a long time, establishing the status of the “yen financing currency.” Many hedge funds borrow low-interest yen to convert into higher-yield USD investments (about 4% interest spread), then close positions when risks increase. The exchange rate fluctuations from these trades offer opportunities for short-term investors.

Comparison of 4 methods to exchange yen in Taiwan

Using 50,000 TWD as an example, the costs vary greatly, sometimes by hundreds of dollars. Here are the real test data:

Method 1: Bank counter cash exchange

Bring cash in TWD to a bank or airport counter to exchange directly for yen cash. It sounds most convenient, but it uses the “cash selling rate,” which is 1-2% worse than the market rate.

For example, Taiwan Bank’s rate on December 10 was about 0.2060 (i.e., 1 TWD = 4.85 yen). Some banks also charge handling fees.

Exchanging 50,000 TWD results in a loss of 1,500-2,000 TWD, unless it’s an emergency (like realizing at the airport that you haven’t exchanged).

Advantages: safest, denominations available (1,000, 5,000, 10,000 yen), staff assistance. Disadvantages: exchange rate difference, limited business hours (weekday 9:00-15:30), possible extra handling fees.

Method 2: Online banking transfer + ATM withdrawal

This is a smart approach. First, use online banking or app to convert TWD into yen in a foreign currency account, using the “spot selling rate” (about 1% discount). Then, withdraw cash at an ATM or visit a bank counter to collect.

E.SUN, Bank of Taiwan, Mega International support 24-hour online currency exchange. The key is you can operate in batches, accumulating yen when TWD/JPY is below 4.80.

Exchanging 50,000 TWD results in a loss of 500-1,000 TWD. If you don’t need cash immediately, keeping funds in a foreign currency account also earns deposit interest (about 1.5-1.8%).

Advantages: 24/7 operation, averaging costs over multiple transactions, better exchange rates, foreign currency accounts can also invest in yen deposits. Disadvantages: need to open a foreign currency account first, withdrawal incurs additional fees.

Method 3: Online reservation for exchange + airport pickup

No need for a foreign currency account. Simply select the exchange rate, amount, pickup branch, and date on the bank’s website, then pick up in person at the counter. Taiwan Bank’s “Easy Purchase” and Mega International offer this service, with the option to reserve airport branch pickup.

Taiwan Bank’s online currency exchange has minimal or no handling fee (pay via Taiwan Pay, only 10 TWD), with a 0.5% favorable rate. Taoyuan Airport has 14 Taiwan Bank branches, 2 of which operate 24 hours, ideal for last-minute arrangements before departure.

Exchanging 50,000 TWD results in a loss of 300-800 TWD, very practical for those planning just before leaving.

Advantages: one of the best exchange rates, often no handling fee, convenient airport pickup, can specify branch. Disadvantages: needs advance reservation (1-3 days), pickup time limited to bank hours, branch changes require prior notice.

Method 4: Foreign currency ATM 24-hour self-service withdrawal

Use a chip-enabled debit card at a foreign currency ATM to withdraw yen cash directly, supporting interbank withdrawals (interbank fee only 5 TWD). The biggest advantage is anytime, anywhere access, no time restrictions.

SinoPac Bank’s foreign currency ATMs have a daily limit of 150,000 TWD equivalent, with no currency exchange fee. But there are only about 200 ATMs nationwide, and denominations are fixed (1,000, 5,000, 10,000 yen). During peak times (like at airports), cash may run out.

Exchanging 50,000 TWD results in a loss of 800-1,200 TWD, but offers high flexibility.

Advantages: 24/7 self-service, instant cash withdrawal, direct deduction from TWD account saves fees, low interbank fee. Disadvantages: limited locations, fixed denominations, cash shortages during peak hours.

Cost comparison table of 4 methods

Recommended for beginners: If your budget is 50,000-200,000 TWD, the most cost-effective approach is “online banking to buy yen and deposit in foreign currency account + ATM withdrawal when needed,” combining favorable rates with flexibility.

Is it worthwhile to exchange yen now?

As of December 10, 2025, TWD to JPY is 4.85. Compared to the beginning of the year at 4.46, the yen has appreciated by 8.7%. For Taiwanese investors, the exchange gain from converting to yen is quite significant, especially under the pressure of TWD depreciation.

How to interpret the exchange trend?

The Bank of Japan’s Governor Ueda has recently signaled a hawkish stance, with market expectations of a rate hike to 0.75% at the December 19 meeting (a 30-year high). The US is entering a rate cut cycle, narrowing the interest rate differential, which could support the yen. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58; short-term fluctuations may bring it back to 155, but medium to long-term forecasts suggest below 150.

Investment advice:

• For travel, exchanging now isn’t a loss since 4.85 is relatively high.
• For hedging, yen is one of the three major safe-haven currencies, suitable for offsetting Taiwan stock market risks, but short-term fluctuations of 2-5% may occur due to arbitrage unwinding.
• Diverse entry points are key; don’t exchange all at once. Consider accumulating when TWD/JPY drops below 4.80.

How to invest after buying yen via online banking?

Don’t let the yen sit idle without interest. You can transfer it into the following 4 investment options:

Yen fixed deposit: The most stable, starting from 10,000 yen, with an annual interest rate of 1.5-1.8%. E.SUN and Bank of Taiwan support online setup.

Yen insurance policies: Cathay and Fubon offer yen savings insurance with guaranteed interest rates of 2-3%, suitable for medium-term funds.

Yen ETFs (e.g., 00675U, 00703): Growth-oriented options tracking yen indices, available as fractional shares via broker apps. Yuanta’s 00675U has a management fee of 0.4%, helping diversify risk.

Yen forex trading: Directly trade USD/JPY or EUR/JPY on platforms like Mitrade 24/7. Advantages include long/short positions, zero commissions, low spreads, and tools like stop-loss, take-profit, and trailing stops, ideal for short-term volatility.

The BOJ’s rate hikes are positive for the yen, but global arbitrage unwinding and geopolitical conflicts (Taiwan Strait, Middle East) may suppress the exchange rate. Beginners should start with yen ETFs for small-scale dollar-cost averaging and gradually move into forex trading.

Common Q&A

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

Cash rate is the rate offered by banks for physical cash transactions, convenient for immediate exchange but usually 1-2% worse than the spot rate, plus handling fees. Spot rate is the standard in the forex market, settled within two business days, used for electronic transfers and foreign currency accounts, and more aligned with international market prices. Simply put, the spot rate is the “backend price,” while the cash rate is the “retail front price.”

Q: How much yen can I get with 10,000 TWD?

Using the formula: Yen amount = TWD amount × current rate. For example, at Taiwan Bank’s cash selling rate of 4.85, 10,000 TWD ≈ 48,500 yen. Using the spot rate of 4.87, it’s about 48,700 yen, a difference of 200 yen (roughly 40 TWD).

Q: What should I bring for counter exchange?

ID card + passport (for locals), foreign passport + residence permit (for foreigners). If you’ve pre-booked online, also bring the transaction notification. Under 20 years old need a parent’s accompaniment. For large amounts (over 100,000 TWD), you may need to declare the source of funds.

Q: What’s the daily withdrawal limit at foreign currency ATMs?

Varies by bank. CTBC, Taishin, and other banks typically limit to 120,000-150,000 TWD equivalent per day. E.SUN’s limit is 150,000 TWD daily. Interbank withdrawals incur a small fee. It’s recommended to split withdrawals and use your own bank’s ATM to avoid cross-bank fees.

Summary

Yen is no longer just pocket money for travel; it also serves as a hedge and investment asset. Whether you’re traveling to Japan next year or want to hedge against TWD depreciation by converting funds into yen, master the two principles of “batch exchange” and “invest after exchange” to minimize costs.

For beginners, start with “Taiwan Bank online reservation + airport pickup” or “online banking transfer + foreign currency ATM,” then invest in deposits, ETFs, or even try forex trading gradually. This way, you can enjoy more cost-effective trips and add a layer of protection during global market fluctuations.