JPY vs CAD: Exchange Decision and 4 Major Exchange Channels Analysis Amid TWD Depreciation

By the end of 2025, the Taiwan dollar (TWD) exchange rate against the Japanese Yen (JPY) reached 4.85, and the exchange rate against the Canadian dollar (CAD) also faced depreciation pressure. Against the backdrop of diverging global central bank policies and rising risk aversion among Taiwanese investors, should you exchange for Yen or for CAD? How to get the most cost-effective exchange? We have compiled the latest market data and exchange strategies to help you make precise decisions.

Era of TWD Depreciation: Why Exchange for Foreign Currencies?

The TWD faces long-term depreciation pressure, which is not just a travel issue but also an asset allocation concern.

Safe-Haven Asset Choices

Both Yen and CAD are international safe-haven currencies. The Yen, due to Japan’s stable economy and low debt, ranks alongside the US dollar and Swiss franc as one of the world’s three major safe-haven currencies. During market turbulence—such as the Russia-Ukraine conflict in 2022—the Yen appreciated 8% in one week, buffering a 10% stock market decline. As a commodity currency, CAD is highly correlated with gold and oil prices and offers protection when geopolitical risks increase.

For Taiwanese investors, holding both Yen and CAD amid TWD depreciation can effectively hedge against Taiwan stock market volatility and New Taiwan dollar risks.

Low-Interest Rate Arbitrage Mechanism

Japan maintains ultra-low interest rates (0.5%), with a US-Japan interest rate differential of 4.0%. Many global investors borrow Yen at low interest, convert to higher-yield USD investments, and when risks rise, close positions to buy back Yen. This creates two-way volatility opportunities for the Yen.

Yen vs CAD: Investment Logic of Two Currencies

Yen Characteristics

• Strong safe-haven attribute, lower volatility
• The Bank of Japan is expected to raise interest rates (projected to 0.75% in December), supporting the Yen’s medium-term trend
• Suitable for conservative investors and travelers
• Fixed deposit rates 1.5-1.8%, steady

CAD Characteristics

• Commodity currency, highly related to oil prices
• The Bank of Canada has entered a rate-cut cycle, with short-term depreciation pressure
• Suitable for investors optimistic about the energy market
• Higher volatility than Yen, with corresponding gains and risks

Conclusion: Without special investment logic, currently Yen is preferable to CAD. But for long-term holdings, a combination of both can diversify risks.

Current Yen Exchange Rate: Is Now a Good Time to Exchange?

As of December 10, 2025, the TWD to JPY rate is about 4.85, meaning 1 TWD can buy 4.85 Yen. Compared to the 4.46 at the start of the year, this has appreciated approximately 8.7%, making the exchange gain quite substantial.

Market Outlook

The Bank of Japan’s hawkish stance is clear—Governor Ueda recently expressed hawkish comments, raising the rate hike expectation to 80%. The December 19 meeting is expected to raise rates by 0.25 bps to 0.75% (a 30-year high), with Japanese bond yields reaching 17-year highs of 1.93%. Meanwhile, the US is entering a rate-cut cycle, strengthening the Yen’s relative support. USD/JPY has fallen from a high of 160 at the start of the year to 154.58; short-term may rebound to 155, but medium to long-term forecasts are below 150.

Recommended Strategy

Currently, the Yen is in a relatively volatile range, so avoid exchanging all at once. It’s advisable to buy in batches when the TWD/JPY rate drops below 4.80, averaging your cost. Taiwan’s foreign exchange demand increased by 25% in the second half of the year, mainly driven by travel recovery and risk hedging, reflecting a market consensus—now is a good time to exchange for Yen.

Complete Comparison of the 4 Major Channels to Exchange for Yen in Taiwan

Many mistakenly think exchanging Yen only involves going to a bank, but in reality, the exchange rate difference alone can cost several thousand NT dollars. Here is a detailed analysis.

Method 1: Bank Counter Cash Exchange

Carry TWD cash to a bank or airport counter to exchange Yen at the “cash selling rate.” This is the most traditional but costly method—cash exchange rates are about 1-2% worse than the spot rate.

For example, Taiwan Bank’s rate on December 10, 2025, is approximately 0.2060 TWD per Yen (1 TWD = 4.85 Yen). Some banks charge fixed handling fees.

Cost Estimate (exchanging 50,000 TWD): loss of about 1,500-2,000 NT dollars

Pros: Safe, reliable, denominations available, staff assistance Cons: Exchange rate spread, handling fees, limited business hours (9:00-15:30 weekdays) Suitable for: Those unfamiliar with online operations or needing small amounts temporarily

Comparison of bank rates on December 10, 2025 (source: bank websites):

Method 2: Online Exchange then ATM or Counter Withdrawal

Use online banking or app to convert TWD into Yen and deposit into a foreign currency account, using the “spot sell rate” (about 1% better than cash selling rate). If cash is needed, withdraw at counters or foreign currency ATMs, incurring additional fees (around 100 NT).

This method suits those observing exchange rate trends and wanting to buy in batches. E.SUN Bank’s app offers exchange with withdrawal fees equal to the rate difference.

Cost Estimate (exchanging 50,000 TWD): loss of about 500-1,000 NT

Pros: 24/7 operation, allows averaging costs, better rates Cons: Need a foreign currency account, withdrawal fees apply Suitable for: Experienced forex investors planning to deposit Yen fixed deposits (current annual rate 1.5-1.8%)

Method 3: Online Currency Settlement, Airport or Branch Pickup

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website, then transfer funds. Bring ID and transaction notice to pick up in person. Taiwan Bank and Mega Bank offer this service, with some branches at airports.

Taiwan Bank’s “Easy Purchase” online settlement is fee-free (Taiwan Pay payment costs only 10 NT), with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank outlets (2 open 24 hours). Pre-booking before travel is most convenient.

Cost Estimate (exchanging 50,000 TWD): loss of about 300-800 NT

Pros: Better rates, often no fees, airport pickup available Cons: Need prior appointment (1-3 days), pickup during business hours only, branch appointments cannot be changed Suitable for: Planned travelers wanting to pick up cash at the airport

Method 4: Foreign Currency ATM Withdrawal

Use a chip-enabled bank card to withdraw Yen cash at foreign currency ATMs, supporting 24-hour operation and interbank withdrawals (from TWD account, only 5 NT fee). About 200 ATMs nationwide, mainly in large bank branches.

Fubon Bank’s foreign currency ATMs allow withdrawal from TWD accounts, with a daily limit of 150,000 NT, no exchange fee. Be aware of fixed denominations (1,000/5,000/10,000 Yen); cash may run out during peak times.

Cost Estimate (exchanging 50,000 TWD): loss of about 800-1,200 NT

Pros: Instant withdrawal, flexible, low interbank fee (5 NT) Cons: Limited locations, fixed denominations, possible cash shortages at peak times Suitable for: Those with no time to visit banks or needing urgent cash

Comparison Table of the 4 Methods

Next Steps After Exchanging Yen: Asset Allocation

After exchanging Yen, don’t let your funds sit idle with zero interest. Based on your needs and risk appetite, consider the following allocations:

Conservative: Yen Fixed Deposit
Open a foreign currency account with E.SUN or Taiwan Bank, deposit online. Minimum 10,000 Yen, annual interest 1.5-1.8%. Suitable for conservative investors.

Mid-term: Yen Insurance Savings
Cathay or Fubon life insurance savings plans, guaranteed interest 2-3%, combining protection and returns.

Growth: Yen ETFs
Yuanta 00675U, 00703 tracking Yen indices, can be bought as fractional shares via brokerage apps, suitable for dollar-cost averaging. Management fee 0.4% annually, diversified risk.

Swing Trading: Forex Trading
Trade USD/JPY, EUR/JPY directly to capture exchange rate fluctuations. Advantages include two-way trading, 24-hour market, and small capital requirements. Suitable for experienced traders.

Common Forex Exchange Q&A

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

Cash rate is the rate banks offer for physical cash, suitable for travel, paid on the spot, but 1-2% worse than the spot rate. The spot rate is the foreign exchange market rate for settlement within two business days (T+2), used for electronic transfers and import/export, offering better rates but requiring waiting.

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

Calculation: Yen amount = TWD amount × current rate. Using Taiwan Bank’s cash rate (~4.85), 10,000 TWD ≈ 48,500 Yen. Using spot rate (~4.87), about 48,700 Yen, difference roughly 200 Yen (about NT$40).

Q: What documents are needed for counter exchange?

Taiwanese citizens: ID card + passport; foreigners: passport + residence permit. If pre-booked online, bring transaction notice. For amounts over 100,000 NT, may need to declare source of funds. Under 20 years old require parental consent and ID.

Q: What is the limit for foreign currency ATM withdrawals?

Limits vary by bank and card type. Latest regulations:

It’s recommended to split withdrawals or use your own bank card to avoid interbank fees. During peak times (e.g., airports), cash may run out early, so plan ahead.

Summary: Asset Strategy in the Era of TWD Depreciation

Yen is no longer just travel “pocket money” but also a safe-haven and investment asset. Under TWD depreciation pressure, compared to CAD, Yen’s prospects are more attractive due to expected rate hikes and economic stability.

Whether traveling or hedging funds, following the principles of “batch exchange + not leaving funds idle” can lower costs and maximize gains. Beginners can start with the simplest methods like “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then progress to fixed deposits, ETFs, or forex swing trading based on needs.

This way, not only can you enjoy more cost-effective travel, but also add a layer of protection against TWD depreciation through Yen asset allocation during global market turbulence.