Is investing in Japanese Yen currently worthwhile? An analysis of the 4 major channels to exchange TWD to JPY in 2025

December 10, 2025, the TWD/JPY exchange rate broke above the 4.85 mark. Against the backdrop of global risk aversion capital inflows and rising expectations of the Bank of Japan’s interest rate hikes, the Japanese yen is no longer just an option for travel abroad but has become a hedging allocation to offset Taiwan stock market volatility. Similarly, the trend of how much USD can buy in TWD is equally critical—currently, USD/TWD hovers around 31.5-32, while the JPY continues to appreciate against the USD, offering Japanese yen investors a dual return opportunity.

This article will analyze whether exchanging for JPY is worthwhile at this stage and how to choose the most optimal exchange channels.

Background of JPY Appreciation: Why Focus on the Exchange Rate Now?

Since early 2025, the TWD has appreciated by 8.7% against the JPY (from 4.46 to 4.85), driven by three main factors:

1. The Bank of Japan’s rate hike expectations are imminent
BOJ Governor Ueda Kazuo’s recent hawkish remarks 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), and Japanese government bond yields reaching a 17-year high of 1.93%. The narrowing of the US-Japan interest rate differential has led to unwinding of yen arbitrage trades, supporting yen appreciation.

2. Reallocation of global risk aversion funds
The yen has long been one of the three major safe-haven currencies (alongside USD and Swiss Franc) due to Japan’s stable economy and relatively low debt levels. In the second half of the year, Taiwan’s currency exchange demand increased by 25%, mainly driven by tourism recovery and institutional hedging needs.

3. Relative strength amid TWD depreciation pressure
The Fed’s rate cut cycle continues, and the US dollar index has retreated, indirectly strengthening the yen against the TWD. For investors, converting to JPY now effectively captures both yen appreciation and TWD depreciation—dual gains.

Is it worthwhile to exchange for JPY now? Staged operations are key

Conclusion: Yes, but with strategic staged entry.

Currently, the JPY exchange rate is quite volatile, with USD/JPY dropping from a high of 160 at the start of the year to around 154.58. Short-term tests of 155 are possible, but medium to long-term forecasts suggest below 150. For small investors, staged entry can effectively average costs and reduce exchange rate risks.

Recommended amounts and timing:

• 50,000-100,000 TWD: Exchange immediately to lock in the current relatively low rate
• 100,000-500,000 TWD: Enter in 3-4 installments, spaced 1-2 weeks apart
• Over 500,000 TWD: Consider monthly allocations, combining JPY fixed deposits or ETF investments

Four mainstream channels for Taiwan’s JPY exchange

1. Real-time foreign currency ATM cash withdrawal — the most flexible temporary solution

Use a chip-enabled financial card at bank foreign currency ATMs to withdraw JPY cash, supporting 24-hour operation and interbank withdrawals (only 5 TWD fee deducted from TWD account). This is the fastest and most convenient method.

SinoPac Bank Foreign Currency ATM features: Direct withdrawal from TWD account, daily limit of 150,000 TWD equivalent, no exchange fee.

Key limitations:

• About 200 nationwide locations, cash may sell out during peak times (e.g., airports)
• Fixed denominations of 1,000/5,000/10,000 JPY
• By end of 2025, Japan ATMs will only support international cards (Mastercard/Cirrus)

Cost estimate (for 50,000 TWD): Loss of 800-1,200 TWD
Suitable for: Travelers or investors needing quick cash without time for bank visits

2. Bank counter exchange — traditional but highest cost

Carry TWD cash to bank branches or airport counters to exchange for JPY cash. Although straightforward, using the “cash selling rate” (about 1-2% above spot rate) results in the highest overall cost.

2025/12/10 cash selling rates (source: bank websites):

Cost estimate (for 50,000 TWD): Loss of 1,500-2,000 TWD

Pros and cons:

• ✓ Safe, reliable, denominations available, staff assistance
• ✗ Worst exchange rate, limited operating hours (9:00-15:30 weekdays)

Suitable for: Users unfamiliar with online operations or needing small amounts of cash temporarily

3. Online foreign exchange settlement + airport pickup — best pre-travel booking option

No foreign currency account needed. Fill in currency, amount, pickup branch, and date on bank’s website, then transfer funds. Upon completion, bring ID and transaction notice to pick up at the counter. Taiwan Bank and Mega Bank offer this service, with airport branch pickup options.

Taiwan Bank “Easy Purchase” online settlement advantages:

• No fee (Taiwan Pay payment costs only 10 TWD)
• Exchange rate about 0.5% better (close to spot rate)
• 14 Taiwan Bank counters at Taoyuan Airport (2 open 24 hours)

Cost estimate (for 50,000 TWD): Loss of 300-800 TWD

Pros and cons:

• ✓ Favorable rates, often no fees, convenient airport pickup
• ✗ Requires prior reservation (1-3 days ahead), limited to banking hours

Suitable for: Planning travelers who want to pick up cash directly at the airport

4. Online exchange + foreign currency account — long-term investor choice

Use online banking or app to convert TWD into JPY and deposit into a foreign currency account, using “spot sell rate” (about 1% better than cash selling rate). If cash is needed, withdraw at branch or ATM, incurring exchange spread fees (from around 100 TWD).

E.SUN Bank app example:

• Convert at spot rate (~0.2058 TWD/JPY, about 4.87 JPY per TWD)
• Cash withdrawal fee equals the difference between spot and cash rate, minimum 100 TWD
• Foreign currency account can be used for JPY fixed deposits (annual interest 1.5-1.8%) or purchasing JPY insurance policies

Cost estimate (for 50,000 TWD): Loss of 500-1,000 TWD

Pros and cons:

• ✓ 24/7 operation, allows staged averaging, better rates, potential for investment
• ✗ Needs to open a foreign currency account first, withdrawal fees apply

Suitable for: Experienced forex users, those with foreign currency accounts, planning long-term holdings of JPY

Summary of costs and scenarios for four channels

For users with 50-200K TWD budget, we especially recommend “online settlement + airport pickup” or “mixed foreign currency ATM” strategies.

After exchanging for JPY: Don’t let your money sit idle

Once you have JPY, the key is to generate returns rather than just hold cash. Here are four allocation options suitable for small beginners:

1. JPY Fixed Deposit (conservative)
E.SUN/ Taiwan Bank open foreign currency accounts, deposit online. Minimum 10,000 JPY, annual interest 1.5-1.8%, with extra interest for 3-6 month terms. Suitable for capital preservation-oriented investors.

2. JPY Insurance Policy (mid-term hold)
Cathay or Fubon life insurance for savings policies, guaranteed interest 2-3%, with 6-year compounding. Lower risk than market investments, suitable for mid-term asset allocation.

3. JPY ETFs (growth-oriented)
Yuanta 00675U, Cathay 00703 tracking JPY index, can buy fractional shares via broker apps, suitable for regular investment. Management fee around 0.4%, participating in yen appreciation potential.

4. Forex Trading (swing trading)
Trade USD/JPY or EUR/JPY directly on forex platforms, supporting zero commission, low spreads, long/short positions, 24-hour trading. Small capital can operate, suitable for experienced swing traders.

FAQs

Q: What’s the difference between cash rate and spot rate?
Cash rate applies to physical bills/coins, with the advantage of immediate delivery but 1-2% higher spread and higher fees. Spot rate is the T+2 settlement rate in forex market, mainly for electronic transfers, closer to international market price, but involves waiting. In short: cash for travel, spot for investment.

Q: How much JPY can I get for 10,000 TWD?
Using Taiwan Bank’s rate on 2025/12/10, cash selling rate ~4.85 (1 TWD = 4.85 JPY), so 10,000 TWD ≈ 48,500 JPY. Using online spot rate (~4.87), about 48,700 JPY, difference around 200 JPY.

Q: How much USD for 1 TWD? Is now a good time to exchange for JPY?
Currently, USD/TWD is around 31.5-32. Compared to that, the yen has appreciated faster—since early 2025, yen has gained 8.7%, while USD/TWD only about 3%. This indicates that converting to JPY now offers higher appreciation potential than just holding TWD or USD, especially with BOJ rate hike expectations.

Q: What’s the limit for foreign currency ATM withdrawals?
From October 2025, new regulations:

Recommend spreading withdrawals or using your own bank card to avoid cross-bank fees (5 TWD per transaction). Plan ahead during peak times to prevent cash shortages.

Final thoughts

The JPY has evolved from a simple “travel pocket money” to an asset class with hedging and investment value. The current TWD 4.85/JPY rate is relatively favorable, especially driven by BOJ rate hike expectations and global risk aversion.

Core recommendations:

1. Staged entry — avoid all-at-once exchange, use regular small exchanges to average costs
2. Choose the right channels — for 50K-200K TWD, prioritize online settlement or foreign currency ATM, reducing costs by 40-50%
3. Invest immediately after exchange — via fixed deposits, ETFs, or forex trading to grow JPY funds
4. Monitor exchange rates — set psychological levels at 4.80-5.00, and add positions at key points

This way, you not only save on travel expenses but also add a layer of protection amid global market fluctuations.