Japanese Yen Exchange Guide: 4 Ways to Choose, Smart Ways to Exchange Amid Exchange Rate Fluctuations

In early December 2025, the Taiwan dollar to Japanese yen quote is 4.85, appreciating 8.7% from 4.46 at the beginning of the year—behind this increase, there are many nuances in currency exchange. Should you exchange yen now? How to do it without losing money to exchange rate differences?

Why focus on the yen now?

The Bank of Japan (BOJ) is about to raise interest rates, with Governor Ueda Kazuo’s hawkish remarks pushing market expectations to 80%, anticipating a rate hike to 0.75% on December 19 (a 30-year high). Meanwhile, the US has entered a rate-cutting cycle, making the yen, as one of the world’s three major safe-haven currencies, increasingly attractive.

For Taiwanese investors, there are two reasons to exchange for yen:

Hedging allocation: The yen has long been ranked alongside the US dollar and Swiss franc as a safe-haven currency, with funds flowing in during market turbulence. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, buffering a 10% decline in the stock market, effectively hedging Taiwan stocks’ volatility.

Investment returns: The yen deposit interest rate has reached 1.5-1.8% annually, combined with exchange rate gains (up 8.7% since the beginning of the year), allowing small investments to accumulate. Plus, diversified options like yen ETFs (such as 00675U), Japanese insurance policies, and more, make it not just for travel but also for investment.

4 practical ways to exchange yen

Many think exchanging yen only involves going to the bank counter, but the exchange rate alone can cost you thousands more. Below is an analysis of the costs and suitable scenarios for each method.

Option 1: Bank counter cash exchange

How it works: Bring cash in TWD to a bank branch or airport counter to exchange directly for yen cash.

Exchange rate: Uses the “cash selling rate,” which is 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 (equivalent to 1 TWD = 4.85 yen).

Cost analysis (for exchanging 50,000 TWD):

• Taiwan Bank cash selling rate: 0.2060, no handling fee
• Mega Bank: 0.2062, no fee
• CTBC Bank: 0.2065, no fee
• E.SUN Bank: 0.2067, 100 TWD per transaction
• Cathay United Bank: 0.2063, 200 TWD per transaction

Estimated loss: 1,500–2,000 TWD.

Advantages: Safe and reliable, staff assistance on-site, full denominations available.
Disadvantages: Worst exchange rate, limited operating hours (weekday 9:00-15:30), handling fees increase costs.
Suitable for: Those unfamiliar with online operations or urgent needs (e.g., last-minute at the airport).

Option 2: Online currency exchange + foreign currency ATM withdrawal

How it works: Use banking app or online banking to convert TWD into yen and deposit into a foreign currency account, using the spot selling rate (about 1% better than cash rate), then withdraw cash via a financial card at a foreign currency ATM.

Exchange rate: Spot selling around 4.87–4.90, with withdrawal fees (from about 100 TWD).

Daily withdrawal limit (2025 new regulation):

• CTBC Bank: 120,000 TWD/day
• Taishin Bank: 150,000 TWD/day
• E.SUN Bank: 150,000 TWD/day (including card spending)
• Cross-bank withdrawal fee: 5 TWD per transaction

Estimated loss: 500–1,000 TWD, suitable for phased entry to average costs.

Advantages: 24/7 operation, allows gradual purchasing to avoid market risk, better exchange rates.
Disadvantages: Need to open a foreign currency account first, withdrawal fees apply, limited ATM locations (~200 nationwide).
Suitable for: Those experienced in forex investment or planning to hold yen long-term.

Option 3: Online currency conversion + designated branch pickup

How it works: No need for a foreign currency account. Fill in the amount, branch, and date online; after completing the transfer, bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service, with appointment options at airport branches.

Handling fee: Taiwan Bank pays via TaiwanPay for only 10 TWD; Mega Bank mostly free.

Advantages: Favorable exchange rates, often no handling fee, airport pickup available, appointment support.
Disadvantages: Need to book 1-3 days in advance, pickup limited to business hours.
Suitable for: Planned travelers who want convenient airport pickup.

Option 4: Bank foreign currency ATM instant withdrawal

How it works: Use a chip-enabled bank card at a foreign currency ATM to withdraw yen cash, deducting from TWD account, available 24 hours. E.SUN Bank’s foreign currency ATM allows withdrawal from TWD account with a daily limit of 150,000 TWD and no exchange fee.

Note: By the end of 2025, Japan ATM withdrawal services will require international cards (Mastercard/Cirrus). During peak times (like airports), cash may run out, so plan ahead.

Estimated loss: 800–1,200 TWD.

Advantages: Instant withdrawal, high flexibility, low cross-bank fee (5 TWD).
Disadvantages: Limited locations, fixed denominations (1,000/5,000/10,000 yen), possible out-of-stock during peak hours.
Suitable for: Those who cannot visit the counter or need cash urgently.

Cost comparison table for exchanging 50,000 TWD

Risks of exchanging yen now: appreciation or depreciation?

USD/JPY has fallen from a high of 160 at the start of the year to 154.58, with expectations of BOJ rate hikes supporting the yen. Short-term, USD/JPY may test 155, but medium to long-term forecasts suggest a move below 150.

Risk points: When global arbitrage unwinds, the yen may fluctuate 2-5%. It’s advisable to buy in phases rather than all at once.

Opportunity: The yen’s safe-haven nature is strong; in a depreciating TWD environment, shifting into yen can effectively hedge.

Next steps after exchanging yen: small investment options

Don’t let your yen sit idle without earning interest. Here are four options suitable for beginners:

Fixed deposit: E.SUN, Taiwan Bank foreign currency accounts, starting from 10,000 yen, with annual interest rates of 1.5-1.8%, providing steady cash flow.

Insurance: Cathay, Fubon yen savings insurance, with guaranteed rates of 2-3%, locking in returns.

ETF: Yuanta 00675U tracks yen index, with 0.4% annual management fee, allowing fractional investment and risk diversification.

Forex trading: Trade USD/JPY or EUR/JPY on forex platforms, supporting long and short positions, 24-hour trading, suitable for swing trading.

Quick FAQs

Q. What’s the difference between cash rate and spot rate?
Cash rate (Cash Rate) applies to physical banknotes, settled immediately, with a 1-2% difference. Spot rate (Spot Rate) is used for electronic transfers, settled T+2, closer to international market rates. The difference is significant for large exchanges.

Q. How much yen can I get with 10,000 TWD?
Using the formula: Yen amount = TWD amount × current rate. For example, Taiwan Bank’s cash selling rate on Dec 10, 2025, is 0.2060, so 10,000 TWD ≈ 48,500 yen; at spot 4.87, about 48,700 yen, a difference of 200 yen (~40 TWD).

Q. What do I need to bring for counter exchange?
Taiwanese: ID card + passport; foreigners: passport + residence permit; under 20 need parent accompaniment; amounts over 100,000 TWD require source declaration; online booking requires transaction notice.

Q. What’s the daily withdrawal limit at foreign currency ATMs?
Varies by bank: CTBC 120,000 TWD/day; Taishin 150,000 TWD/day; E.SUN 150,000 TWD/day. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees (5 TWD per transaction). After 2025, most banks will set daily limits at 100,000–150,000 TWD, so plan ahead during peak times.

Yen vs. RMB fixed deposits: hedging asset allocation

Besides yen, RMB fixed deposits are also an option for hedging. Comparison:

Yen suits global hedging; RMB suits Asian allocation. A mixed approach can diversify risk.

Final advice

Yen has evolved from “travel pocket money” to an asset with both hedging and investment value. Whether for travel or capital allocation, mastering “phased exchange + avoiding complacency” can lower costs and maximize returns. Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then shift into fixed deposits, ETFs, or swing trading based on needs, ensuring every TWD can play a protective role amid global market fluctuations.