Japanese Yen Exchange Guide: Understand the Cost Differences of 4 Major Channels at a Glance

By the end of 2025, the exchange rate of TWD to JPY hovers around 4.85, making it a good time for many to exchange for Japanese yen. Whether you’re planning to travel abroad next year or want to use JPY for small-scale hedging investments, the key question is often not “should I exchange,” but “how to exchange most cost-effectively.”

Several methods for exchanging JPY are circulating in the market, but the differences in exchange rates and handling fees among banks can often save you an amount equivalent to a month’s worth of bubble tea. We’ve compiled the latest exchange information to help you understand all at once.

Why Do Taiwanese People Love Exchanging for JPY?

The appeal of JPY isn’t just about the convenience of shopping in Japan. From a financial perspective, the yen is recognized as one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), trusted by investors due to Japan’s stable economy and low debt levels.

Travel and Daily Spending: Popular destinations like Tokyo, Osaka, and Hokkaido are increasingly accepting credit cards, but cash still accounts for over 40%, especially at food stalls and convenience stores. Plus, the demand for purchasing via proxy and online shopping from Japan continues to rise, prompting many to prepare JPY in advance.

Investment Perspective: As a safe-haven asset, the yen tends to attract capital when stock markets fluctuate or geopolitical risks increase. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, while Taiwan’s stock market fell by 10%. For Taiwanese investors, holding some JPY can help hedge against Taiwan stock risks.

Additionally, the Bank of Japan has maintained ultra-low interest rates (~0.5%) for a long time, attracting investors to engage in “arbitrage trading”—borrowing low-interest JPY to invest in higher-yield USD (the USD/JPY interest rate differential is nearly 4%). When market risks rise, they close positions, which also boosts demand for trading JPY.

Breakdown of 4 Major Methods for Exchanging JPY and Their Costs

Many think that exchanging at a bank counter is the only option, but in reality, the costs vary greatly among four methods.

1. Online exchange reservation with airport pickup (most recommended)

Book the exchange online via bank websites, select the date and pickup branch (often at the airport), and pick up with ID after completing the transaction. Taiwan Bank’s “Easy Purchase” platform and Mega International Bank offer this service.

Cost estimate (for NT$50,000):

• Taiwan Bank “Easy Purchase”: about 0.5% better exchange rate, handling fee only NT$10 (paid via Taiwan Pay) or free
• Estimated loss: NT$300-500

Advantages: Close to market rate, low or no handling fee, can choose airport pickup (Taoyuan Airport has up to 14 Taiwan Bank counters, 2 open 24 hours).

Disadvantages: Need to book at least 3-5 days in advance, pickup time limited by bank hours, cannot change branch on short notice.

Suitable for: Planning travelers and students who schedule in advance.

2. Foreign currency ATM withdrawal (emergency rescue)

Use a chip-enabled financial card at foreign currency ATMs outside banks to withdraw cash in JPY, open 24 hours, with cross-bank fee as low as NT$5. Banks like Fubon, CTBC offer this, with daily withdrawal limits around NT$120,000-150,000.

Cost estimate (for NT$50,000):

• Cross-bank fee: NT$5
• Estimated loss: NT$800-1,000

Advantages: Anytime, anywhere withdrawal, no reservation needed, low cross-bank fee, about 200 ATMs nationwide.

Disadvantages: Still limited in some urban areas, fixed cash denominations (only 1,000/5,000/10,000 JPY), cash may run out during peak hours (like at airports).

Suitable for: Spontaneous trips, last-minute travelers, or those needing immediate cash.

3. Bank counter cash exchange (traditional but costly)

Bring NT$ cash directly to a bank or airport counter to exchange for JPY cash on the spot. This is the most “old-fashioned” method but has the worst rates.

Cost estimate (for NT$50,000):

• Using “cash selling rate” (1-2% worse than spot rate)
• Some banks add fixed handling fee NT$100-200
• Estimated loss: NT$1,500-2,000

Reference rates (Dec 10, 2025): Cash selling rates at banks are around 0.2058-0.2069 (about NT$4.85 per 1 JPY). Taiwan Bank and Hua Nan Bank are more favorable, while E.Sun and Taipei Fubon charge NT$100-200 handling fee.

Advantages: Most secure, immediate receipt, no need to operate online, staff assist.

Disadvantages: Worst rates, limited by bank hours (9:00-15:30 on weekdays), possible higher costs with fees.

Suitable for: Elderly, those unfamiliar with online operations, or travelers needing small emergency cash.

4. Online exchange to foreign currency account (suitable for small investments)

Use online banking apps to convert NT$ to JPY (deposit into a foreign currency account), using the “spot selling rate.” Later, if you withdraw cash at an ATM or counter, additional exchange fees apply.

Cost estimate (for NT$50,000):

• Exchange at spot rate (about 1% better than cash rate)
• Withdrawal fee NT$100-200
• Estimated loss: NT$500-1,000

Advantages: 24/7 operation, better rate than counter exchange, suitable for dollar-cost averaging.

Disadvantages: Need to open a foreign currency account in advance, withdrawal incurs extra fees, may be complex for beginners.

Suitable for: Experienced forex traders, long-term holding investors, can also invest in JPY deposits (current annual interest ~1.5-1.8%).

Comparison of costs and scenarios for the 4 methods

Is now a good time to exchange for JPY?

By the end of 2025, TWD/JPY is around 4.85, up about 8.7% from 4.46 at the start of the year. In the second half, demand for exchange increased by 25%, driven by travel recovery and asset hedging needs.

Exchange rate outlook:

The Bank of Japan is expected to raise interest rates in mid-December (by 0.25bps to 0.75%, a 30-year high). The US is entering a rate cut cycle. These factors support the yen. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58, likely fluctuating around 155 short-term, but long-term forecast points below 150.

Investment advice:

While JPY is a safe-haven asset, short-term volatility of 2-5% remains (especially when closing arbitrage positions). It’s not recommended to exchange all at once; instead, use a dollar-cost averaging approach to reduce risk and average costs. The best strategies are:

• First entry: Exchange 30% when TWD/JPY is below 4.80
• Second entry: Watch closely, exchange 40% around 4.70-4.75
• Keep cash: Reserve 30% for sudden needs

What to do after exchanging for JPY?

Holding JPY without using it is a missed opportunity for hedging. Here are four options suitable for small-scale beginners.

JPY fixed deposit: The safest choice, offered by E.Sun, Taiwan Bank, Mega Bank, starting from 10,000 JPY, with annual interest of 1.5-1.8%. Deposit directly into a foreign currency account.

JPY insurance policy: Medium-term holding, with Cathay and Fubon offering savings insurance with guaranteed rates around 2-3%, suitable for added protection.

JPY ETFs: Growth-oriented, like Yuanta 00675U tracking JPY trends, available as fractional shares via broker apps, suitable for regular investment. Management fee about 0.4%.

Forex swing trading: Advanced traders can trade USD/JPY or EUR/JPY directly, with long and short options, 24-hour markets, and small capital requirements. Suitable for experienced traders.

Common Q&A

Q. What’s the difference between “cash rate” and “spot rate”?

Cash rate is the bank’s buy/sell rate for physical bills or coins, allowing immediate cash pickup but with a 1-2% premium over the market rate. Spot rate is used for interbank settlement, settled in T+2, closer to market price, suitable for electronic transfers or foreign currency accounts.

In simple terms: use cash rate for physical cash, spot rate for online transfers for better value.

Q. How much JPY can NT$10,000 buy?

Using the formula: JPY amount = NT$ amount × current rate

At Taiwan Bank’s Dec 2025 rate (~0.2060, NT$4.85 per JPY), NT$10,000 ≈ 48,500 JPY. Using spot rate (~4.87), about 48,700 JPY, difference of around 200 JPY (~NT$40).

Q. What do I need to bring to the bank to exchange?

ID card + passport for locals; passport + residence permit for foreigners. If online reservation, bring transaction confirmation. Large amounts (>NT$100,000) may require source declaration. Minors under 20 need parental consent.

Q. Is there a limit on foreign currency ATM withdrawals?

Post-2025 regulations vary by bank. Typically, daily limit is around NT$120,000-150,000 per card. For cross-bank cards, limits depend on issuing bank. It’s advisable to split withdrawals to avoid exceeding limits.

Final Reminder

JPY is no longer just “pocket money for travel”; it has become an asset with hedging and investment value. Whether for short-term travel or medium-long-term asset allocation, mastering “batch exchange” and “use after exchange” principles can lower costs and maximize benefits.

For beginners, the simplest and safest methods are “online exchange + airport pickup” or directly using “foreign currency ATMs,” which can be done in minutes, saving effort and money. After exchanging, if you want JPY to generate returns, consider JPY deposits or ETFs—participate in market growth and provide protection during Taiwan’s economic fluctuations. This way, you can enjoy more cost-effective travel and add an extra layer of asset protection amid global market changes.