The big reveal of Japanese Yen exchange costs: 4 ways to save the most

Key Tip: The same 50,000 TWD can yield over 1,000 TWD difference in JPY exchange costs depending on the method used.

In December 2025, the TWD to JPY exchange rate reaches 4.85, making it an ideal time for many to plan trips to Japan or consider hedging strategies. However, most people are unfamiliar with the cost structure of exchanging JPY, thinking that visiting a bank counter is the only option, which often results in paying more than necessary.

This article will analyze the four most common ways to acquire JPY in Taiwan from a cost perspective, helping you understand why choosing the right method matters.

Why is it worth exchanging for JPY? Not just for travel

When it comes to currency exchange, JPY has long been among the top three currencies Taiwanese people exchange for. At first glance, this is due to the popularity of travel to Japan, but the actual value extends far beyond that.

Travel and daily life: Consumption scenes in Tokyo, Osaka, and Hokkaido still largely rely on cash (credit card penetration is only about 60%). Proxy shopping and cross-border shopping from Japan often involve direct JPY payments to Japanese websites or service providers. Additionally, students studying or working in Japan need to pre-arrange currency exchange to avoid extra costs caused by market fluctuations.

Financial hedging perspective: The JPY is recognized globally as one of the three major safe-haven currencies (along with USD and CHF). During global market turbulence, funds tend to flow into JPY for safety—during the Russia-Ukraine conflict in 2022, the JPY appreciated 8% in one week, while stocks fell 10%. For Taiwanese investors, holding some JPY assets acts as insurance against volatility in the Taiwan stock market.

The Bank of Japan maintains ultra-low interest rates (currently 0.5%), making JPY a “funding currency” for international arbitrage. Investors borrow low-interest JPY, convert to higher-yield USD (about 4% interest rate differential), and unwind positions when market risks rise, repurchasing JPY. Throughout this process, the safe-haven value of JPY is continually reinforced.

Four ways to acquire JPY in Taiwan, with significant cost differences

Many believe exchanging JPY means queuing at bank counters, but just the exchange rate difference can cause costs to vary by thousands of NT dollars. Here are the four most common methods:

Method 1: Bank counter cash exchange — the most traditional but most expensive

This is the most straightforward approach: bring cash NT dollars to a bank branch or airport counter and exchange for JPY cash on the spot. It’s simple and immediate, but the cost is the “cash selling rate,” which is usually 1-2% worse than the international spot rate.

For example, Taiwan Bank’s rate on December 10, 2025, was 1 JPY = 0.2060 TWD (or 1 TWD = 4.85 JPY). Some banks also charge an additional NT$100-200 handling fee.

Based on the rates from major banks on that day, cash selling rates ranged from 0.2058 to 0.2069, with handling fees varying—Taiwan Bank, Mega Bank, CTBC, and First Bank are free, while E.SUN, E.SUN Bank, and Cathay United Bank charge NT$100-200. Exchanging NT$50,000 could result in a loss of about NT$1,500-2,000.

Who should use this method? Only suitable for small amounts (NT$5,000-10,000), urgent needs, unfamiliar with online options, or when already at the airport with no time to wait.

Method 2: Online currency exchange + ATM or counter withdrawal — a mid-tier option

Many banks’ apps now support this feature. You can log into your bank app at home, convert NT$ into JPY, and deposit it into a foreign currency account, using the “spot sell rate” instead of the cash rate. Spot rates are typically 0.5-1% better than cash rates.

Then, you have two options:

• Keep JPY in the account for investment or savings (most banks offer 1.5-1.8% fixed deposit rates for JPY)
• Withdraw cash at the counter (which incurs a difference between spot and cash rates, NT$100-200)
• Use a foreign currency ATM to withdraw (interbank fee only NT$5)

For example, E.SUN Bank’s app-based exchange, if you withdraw cash afterward, the fee is the difference between spot and cash rates.

Who should use this? Those with time to plan, wanting to buy in installments to average costs, already holding foreign currency accounts, or intending to keep JPY as fixed deposits. The downside is needing to open an account first, and counter withdrawals are limited to bank hours.

Method 3: Online currency exchange + airport pickup — best pre-departure plan

Many banks offer “reservation services,” ideal for travelers. You don’t need a foreign currency account beforehand; just fill out the online form specifying currency, amount, preferred branch, and pickup time. The bank handles the exchange. When picking up, bring ID and transaction notice to the designated branch.

Taiwan Bank’s “Easy Purchase” online exchange is the most user-friendly—0.5% rate discount, almost no handling fee (NT$10 if paid via Taiwan Pay). Taiwan Bank has 14 counters at Taoyuan Airport, including two 24-hour locations, making last-minute exchange possible before departure.

Exchanging NT$50,000 results in a loss of about NT$300-800, making it one of the lowest-cost options.

Who should use this? Planned travelers, those who want to pick up cash at the airport. The downside is needing to book in advance (usually 1-3 days), and once booked, the branch and time cannot be changed; pickup must occur within the scheduled window.

Method 4: 24-hour foreign currency ATM withdrawal — most flexible but with limitations

If you have a bank chip-enabled card, you can withdraw JPY cash directly from foreign currency ATMs. The biggest advantage is 24/7 access, no banking hours restrictions, and only NT$5 interbank fee for cross-bank withdrawals (deducted directly from your NT$ account).

Mega Bank’s foreign currency ATMs have a daily withdrawal limit of NT$150,000 equivalent, with no currency exchange fee, making it relatively generous.

However, foreign currency ATMs have clear limitations: only about 200 nationwide, concentrated in urban areas; limited supported currencies (mainstream currencies prioritized); fixed denominations (usually 1,000, 5,000, 10,000 JPY); and during peak times (like airports), cash may run out. Many travelers find themselves at the airport ATM only to discover no cash available, wasting time.

Exchanging NT$50,000 could result in a loss of NT$800-1,200.

Who should use this? Sudden cash needs, no time to visit a bank branch. But don’t rely on this as your main method—plan ahead.

Cost comparison of the four methods

Assuming you exchange NT$50,000 into JPY, based on current rates:

Beginner tip: For budgets between NT$50,000-200,000, the most cost-effective approach is “online exchange + airport pickup,” minimizing costs and hassle.

Is now a good time to exchange JPY? Market timing analysis

In early December 2025, the TWD to JPY rate is about 4.85, up from 4.46 at the start of the year—an 8.7% appreciation. If you exchanged NT$50,000 at the beginning of the year, the current amount has appreciated by about NT$4,350.

In the second half of 2025, Taiwanese demand for currency exchange increased by 25%, mainly driven by the revival of travel and hedging needs. But is this really the best timing?

Short-term volatility factors: The Bank of Japan is poised to raise interest rates. Recent hawkish comments by Governor Ueda have increased market expectations of a rate hike to 0.75% at the December 19 meeting (a 30-year high). Japanese bond yields hit a 17-year high of 1.93%. The USD/JPY has fallen from 160 to around 154.58, with short-term fluctuations around 155, but long-term forecasts suggest a decline below 150.

Investment advice: For travel, exchanging now isn’t a loss. For hedging investments, consider staggered purchases rather than a lump sum, as short-term arbitrage unwinding could cause 2-5% volatility. Diversifying purchases helps average costs and hedge against different exchange rate movements.

What to do after exchanging JPY? Don’t let your money sit idle

Instead of letting your cash gather dust at home, make it work for you. Common conservative to advanced options include:

JPY fixed deposit (most stable): E.SUN, Taiwan Bank, and others offer foreign currency accounts with fixed deposits starting at NT$10,000, with annual interest rates of 1.5-1.8%. For example, NT$100,000 in a year yields about NT$1,500-1,800 in interest.

JPY savings insurance (medium-term hold): Cathay Life, Fubon Life offer JPY-denominated savings policies with guaranteed rates of 2-3%, combining protection and returns. Suitable for locking in rates without frequent market monitoring.

JPY ETFs (growth allocation): For example, Yuanta 00675U tracks JPY exchange rate movements; you can buy fractional shares via stock apps with as little as NT$3,000. This approach is for those wanting to capture JPY appreciation potential, with management fees of 0.4%, industry low.

All these options convert JPY into passive income or capital appreciation, far better than leaving cash idle.

Quick FAQs

Q: How much is the difference between cash rate and spot rate?
A: Usually 1-2%. Cash rate is set for physical bills and coins, paid on the spot but more costly. Spot rate is the FX market rate settled T+2, used for account transfers and electronic transactions, closer to international prices, thus cheaper.

Q: How many JPY can I get with NT$10,000?
A: Based on December 2025 rates, about 48,500 JPY at 1 TWD = 4.85 JPY. Actual amount depends on the method used (cash vs. spot rate, with a difference of 200-300 JPY).

Q: Are there withdrawal limits at foreign currency ATMs?
A: Yes. Post-2025 regulations, most banks set daily limits around NT$100,000-150,000 equivalent. For example, CTBC allows NT$120,000 per transaction and per day; Taishin NT$150,000; E.SUN NT$50,000 per transaction, NT$150,000 per day. Consider spreading withdrawals or using your own bank card to reduce fees.

Q: What documents are needed for counter exchange?
A: ID card + passport (for locals); or passport + residence permit (for foreigners). For online reservations, also bring transaction notice. Large exchanges over NT$100,000 may require source of funds declaration.

Summary

JPY is no longer just pocket money for travel; it’s also a hedging asset and investment tool. The key is not whether to exchange but how to do it most cost-effectively and how to use the funds afterward.

Follow the principles of “staggered exchange” and “don’t leave the money idle after exchange.” For beginners, the safest route is “Taiwan Bank online exchange + airport pickup,” saving costs and hassle. If you already have foreign currency accounts, consider combining online exchange with fixed deposits—travel and earn interest simultaneously. Whatever method you choose, avoid the “cost pit” of bank counter exchanges, and you’re already ahead.