Japanese Yen Exchange Guide: Revealing the Costs of 4 Major Channels and How to Smartly Deploy Amid NT$ Depreciation

Market Background: Why the Japanese Yen Has Become Taiwan’s First Choice

By the end of 2025, the TWD/JPY exchange rate has risen to 4.85, and at the same time, the fluctuation in the TWD/SGD rate has attracted many investors’ attention to diversification. Compared to 4.46 at the beginning of the year, the yen has appreciated by 8.7% in just one year. This reflects not only a recovery in travel demand but also indicates that safe-haven assets are becoming a key allocation for many investors.

Market data shows that Taiwan’s foreign exchange demand in the second half of the year increased by 25%, driven by three factors: first, the recovery of Japanese tourism creating rigid demand; second, increased global economic uncertainty prompting investors to seek safe assets; third, the shift in the Bank of Japan’s policy, with Ueda Kazuo’s recent hawkish remarks pushing market expectations of rate hikes to 80%, with a 0.25 basis point increase to 0.75% expected at the December 19 meeting (a 30-year high).

As one of the world’s three major safe-haven currencies (alongside the US dollar and Swiss franc), the yen often becomes a safe harbor for capital inflows during market turbulence. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in one week, while the stock market fell by 10%, demonstrating its effectiveness in risk hedging. For Taiwanese investors, exchanging for yen is not only a preparation for travel but also an effective tool to hedge against Taiwan stock market volatility.

In-Depth Analysis of Currency Exchange Methods: Cost, Efficiency, and Risks

Many people habitually think that exchanging foreign currency only requires walking into a bank counter, but in reality, the exchange rate difference alone can cost you several cups of bubble tea. For example, exchanging 50,000 TWD, the cost difference across channels can exceed 1,000 TWD.

Method 1: Foreign Currency ATMs, 24/7 Cash Withdrawal

The biggest advantage of foreign currency ATMs is flexibility in timing. Using a chip-enabled debit card at a bank’s foreign currency ATM to withdraw JPY cash supports 24-hour operation, with a cross-bank fee of only 5 TWD. For example, at E.SUN Bank, the daily limit from a TWD account is 150,000 TWD, with no additional currency exchange fee.

Cost composition: withdrawing 50,000 TWD, cross-bank fee about 5 TWD, total cost approximately 800-1,200 TWD.

Disadvantages include limited locations (about 200 nationwide) and fixed denominations (only 1,000, 5,000, 10,000 JPY). During peak times (holidays or airports), cash may run out. It is recommended not to wait until the last minute to withdraw; planning ahead can effectively avoid missing out.

Suitable for: Urgent travel, tight schedules, busy professionals without time to visit counters.

Method 2: Traditional Counter Exchange, Safe but Most Expensive

Carrying TWD cash directly to a bank branch or airport counter to exchange for cash JPY is the most traditional and widely known method. The advantage is a simple process, full denominations, and on-site assistance from staff, with the highest safety.

However, it uses the “cash selling rate” (about 1-2% higher than the spot rate), making it more costly overall. For example, Taiwan Bank’s cash selling rate on December 10, 2025, was 0.2060 TWD/JPY (about 4.85 JPY per TWD).

Cost composition: exchanging 50,000 TWD, losing about 1,500-2,000 TWD. Some banks also charge a fixed handling fee of 100-200 TWD, increasing costs further.

Suitable for: Travelers unfamiliar with online operations or needing small amounts of cash urgently (e.g., discovering insufficient cash at the airport).

Method 3: Online Currency Purchase + Airport Pickup, Planning Travelers’ First Choice

No need to open a foreign currency account in advance. Fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notification to pick up at the counter. Taiwan Bank’s “Easy Purchase” online currency purchase is fee-free (using TaiwanPay costs only 10 TWD), with about 0.5% better exchange rates.

The biggest advantage is the ability to reserve airport branch pickup. Taoyuan Airport has 14 Taiwan Bank locations, two of which operate until midnight, ideal for international flight passengers.

Cost composition: exchanging 50,000 TWD, losing about 300-800 TWD.

Note that pickup times are limited by bank hours (usually 9:00-15:30 on weekdays), and reservations cannot be changed on short notice. Suitable for travelers with detailed planning.

Suitable for: Travelers with ample time before departure who want to withdraw cash directly at the airport.

Method 4: Online Currency Exchange + Foreign Currency Account, Investment-Oriented Choice

Through online banking or apps, convert TWD into JPY and deposit into a foreign currency account, using the “spot sell rate” (about 1% better than cash sell rate). If cash is needed, it can be withdrawn at counters or ATMs, but with exchange spread fees (starting around 100 TWD).

This method’s advantage is observing exchange rate trends, allowing for phased entry when rates are low (e.g., TWD/JPY below 4.80), averaging costs. For example, after currency exchange via E.SUN Bank’s app, withdrawal fees are the difference between spot and cash rates, with a minimum of 100 TWD.

Cost composition: exchanging 50,000 TWD, losing about 500-1,000 TWD.

Disadvantages include the need to open a foreign currency account and more steps, but benefits are 24/7 operation and the possibility to shift into JPY fixed deposits (current annual interest rate around 1.5-1.8%) for steady investment.

Suitable for: Readers with forex investment experience and long-term holdings of JPY assets.

Investment Extensions: Four Main Directions After Converting to Yen

If you’ve completed currency exchange, instead of letting the funds sit idle with no interest, consider stable income or growth-oriented investments.

JPY Fixed Deposits: Low entry point, low risk. E.SUN, Taiwan Bank, etc., offer foreign currency accounts starting from 10,000 JPY, with annual interest rates of 1.5-1.8%, suitable for conservative investors.

JPY Insurance Policies: Mid-term holding strategy. Cathay, Fubon Life offer savings insurance products with guaranteed interest rates of 2-3%, combined with protection features.

JPY ETFs (00675U, 00703): Growth-oriented allocation. Yuanta 00675U tracks the JPY index, with a management fee of 0.4% annually, and can be purchased in fractional shares via broker apps, suitable for dollar-cost averaging.

JPY Forex Trading: Volatility-based strategy. Direct trading of USD/JPY or EUR/JPY on forex platforms, with features like long/short positions and 24-hour trading. Although riskier, it requires less capital and is suitable for experienced traders.

Benchmark Exchange Rate Data: Major Bank Fees Overview

Based on the latest rates as of December 10, 2025, the cash selling rates and counter fees are as follows (for reference only):

Taiwan Bank and Hua Nan Bank offer relatively favorable rates with no fees, while E.SUN Bank charges 100 TWD but compensates with low cross-bank ATM withdrawal fees.

Summary of Four Main Methods: Costs and Recommendations

For most with a budget of 50,000-200,000 TWD, a combined approach of “online currency purchase + ATM withdrawal” is recommended: handle large amounts online for better rates, and use ATMs for small, urgent needs.

When Is the Yen Exchange Rate Most Favorable? Short- to Medium-Term Outlook

Currently, the JPY exchange rate remains volatile within a broad range. The US entering a rate cut cycle supports the yen, and the Bank of Japan’s rate hike expectations are rising. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58, with a short-term test of 155 possible, but medium to long-term forecasts suggest below 150.

From an investment perspective, while the yen is a strong safe-haven, there are risks of two-way fluctuations. It is advisable to exchange gradually, avoiding a lump sum. Additionally, global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) could temporarily depress the yen.

For those planning to travel to Japan next year or hedge assets, current rates are relatively favorable. Don’t obsess over daily fluctuations; act now. Using scientific exchange methods and investment planning, the yen can truly become your hedge and growth tool.

Quick FAQs

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

Cash exchange rate is the rate banks offer for physical cash transactions, convenient for carrying cash but usually 1-2% worse than market prices. Spot rate is the foreign exchange market’s T+2 settlement rate, mainly used for electronic transfers and corporate settlements, closer to international market prices.

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

Based on Taiwan Bank’s rate on December 10, 2025, about 0.2060 TWD/JPY, 10,000 TWD can exchange for approximately 48,500 JPY. Using the spot rate (about 0.2053), it would be about 48,700 JPY.

Q: What ID do I need for counter exchange?

Taiwanese need to bring ID card + passport; foreigners need passport + residence permit. If pre-booked online (online currency purchase), also bring transaction notification. Under 20 requires parental consent; large exchanges over 100,000 TWD may require source of funds declaration.

Q: What’s the limit for foreign currency ATM withdrawals?

From October 2025, new regulations limit third-party digital accounts to 100,000 TWD daily. For example, CTBC Bank’s card limit is equivalent to 120,000 TWD per transaction and per day; Taishin Bank’s is 150,000 TWD per transaction and per day; E.SUN Bank’s is 50,000 TWD per transaction and 150,000 TWD per day. It is recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Conclusion: Core Logic of Yen Asset Allocation

The JPY has long surpassed the “travel pocket money” role and has upgraded to an asset class combining hedging and investment attributes. Under the continuous depreciation pressure on the TWD, moderate JPY allocation can hedge risks and seize benefits from the Bank of Japan’s rate hike cycle.

The key strategy for currency exchange is “gradual entry + full conversion without sitting idle.” Beginners can start with Taiwan Bank’s online currency purchase or ATM withdrawals, then shift into fixed deposits, ETFs, or forex trading based on needs. This not only reduces travel costs but also adds a layer of asset protection amid global market turbulence.

Currently, the JPY/TWD rate of 4.85 is significantly higher than at the start of the year, but considering the BOJ’s rate hike expectations and the US dollar’s weakness, the medium-term allocation window remains open. Instead of obsessing over the bottom, act now. With scientific exchange methods and investment planning, the yen can truly become your tool for hedging and wealth growth.