Which method should you choose to exchange TWD to JPY? An analysis of the four latest exchange channels by the end of 2025

The exchange rate of the Japanese Yen has reached 4.85, which is not only a concern for travelers but also a new favorite among hedging investors. But the real question isn’t “should I exchange now,” but “how to exchange most cost-effectively”—just choosing the wrong exchange channel can cost you an extra NT$2,000 or more.

Why Now Is the Time to Seriously Consider Exchanging Yen

When it comes to foreign currency exchange, many people instinctively think of going to the bank counter. But if that’s all you know, it means you haven’t grasped the true value of the Yen.

Everyday Level: Most stores in Tokyo, Osaka, and Hokkaido still accept cash (credit card penetration is only 60%), and services like purchasing agents, Japanese online auctions, studying abroad, working holidays—all require cash or bank transfers.

Investment Level is the key. The Yen ranks as one of the world’s three major safe-haven currencies (alongside the US dollar and Swiss franc). When stock markets fluctuate or geopolitical risks rise, capital automatically flows into Yen. During the week of the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a single week, while the Taiwan stock index fell 10%—in other words, holding Yen automatically cushions the decline of Taiwanese stocks.

Plus, the Bank of Japan Governor Ueda Kazuo recently made hawkish comments, and the market expects the December 19 meeting to raise interest rates to 0.75% (a 30-year high), with Japanese government bond yields approaching 1.93%. In the short term, USD/JPY may fluctuate between 154–155, but in the medium to long term, it is forecasted to drop below 150—making now a smart time for those looking to dollar-cost average or hedge with Yen.

Complete Analysis of Taiwan’s Four Major Yen Exchange Channels

The traditional method of “bringing NT$ cash to the bank to exchange” is actually the most expensive. We’ve compiled the actual rates as of December 2025 to show you the real costs of each method.

Counter Cash Exchange: Safe but Most Expensive

Carrying NT$ cash directly to a bank or airport branch to exchange for Yen. This method seems simple, but banks use the “cash selling rate,” which is usually 1–2% worse than the spot rate. Calculations show that NT$50,000 will lose NT$1,500–2,000.

For example, Taiwan Bank’s rate as of December 10, 2025, is about 0.2060 NT$/Yen (meaning NT$1 = 4.85 Yen). Some banks also charge an additional NT$100–200 handling fee.

This method is only suitable for urgent airport needs or those unfamiliar with online operations.

Online Exchange for Foreign Currency Accounts: Flexible but Requires Know-How

Using bank apps or online banking, convert NT$ to Yen and deposit into a foreign currency account (using a better “spot selling rate”). When needed, withdraw cash from the foreign currency account. Costs can be reduced to NT$500–1,000, suitable for investors who want to enter gradually and observe exchange rate trends.

The downside is you need to open a foreign currency account first, and when withdrawing cash, you still pay a spread fee (around NT$5–100 cross-bank). Experienced investors can combine this with Yen fixed deposits (currently 1.5–1.8% annual interest) or directly transfer Yen into ETFs for additional returns.

Online Currency Exchange + Airport Pickup: Best for Pre-Travel Preparation

Book currency exchange directly on the bank’s website, fill in the amount, currency, pickup branch, and date. After completing, bring your ID and transaction notification to the designated branch to pick up. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay NT$10 via TaiwanPay), and offers a 0.5% better rate.

This is the smartest way before traveling. Taoyuan Airport has 14 Taiwan Bank outlets (2 open 24 hours). You can pick up on the day of departure or the day before, saving the hassle of last-minute exchange. Cost is about NT$300–800, making it the most cost-effective among the four methods.

The only caveat is you need to make an appointment 1–3 days in advance, and pickup times are limited to bank hours; branches cannot modify the appointment.

Foreign Currency ATM Withdrawal: Fastest but Limited Locations

Use a chip-enabled debit card at foreign currency ATMs to withdraw Yen cash, operational 24 hours. E.SUN Bank’s foreign currency ATMs allow NT$15,000 per day withdrawal from a NT$ account, with a cross-bank fee of NT$5.

Advantages are instant withdrawal and high flexibility, with costs around NT$800–1,200. However, there are only about 200 ATMs nationwide, and during peak times (airports, stations), cash may run out. Not recommended for last-minute needs.

How to Enter the Market Gradually and Wisely

By the end of 2025, the NT$ to Yen exchange rate is expected to reach 4.85, up 8.7% from the beginning of the year at 4.46. Under NT$ depreciation pressure, this exchange gain is quite significant.

However, the Yen may still fluctuate in the short term. Arbitrage trading could involve 2–5% volatility risk, so don’t exchange everything at once. The best strategy is to enter gradually:

• Small travel amounts (NT$50,000–100,000): Use online exchange + airport pickup, cost-effective and convenient
• Medium investment amounts (NT$200,000–500,000): Use online exchange for foreign currency accounts, observe rates and enter gradually, possibly transferring into fixed deposits or ETFs
• Large amounts (NT$500,000 and above): Consider multiple transactions, staggered withdrawals to reduce cash risk

Next Steps After Exchanging Yen—Don’t Let Your Money Sit Idle

If you’ve successfully exchanged and hold Yen, how should you allocate it?

Yen fixed deposits are the most stable choice. E.SUN and Taiwan Bank allow online deposits into foreign currency accounts, starting from 10,000 Yen, with annual interest rates of 1.5–1.8%, providing steady income for idle funds.

Want to be more proactive? Yen ETFs (such as Yuanta 00675U, Cathay 00703) track Yen movements and can be bought as fractional shares via broker apps, with an annual management fee of only 0.4%.

Risk-takers can try Forex trading USD/JPY or EUR/JPY on trading platforms (like Mitrade), engaging in swing trading to enjoy 24-hour trading, long/short positions, and low costs.

Regardless of the method, the core principle remains: Exchange and act immediately—don’t let Yen sit idle without earning interest.

Common Questions About Foreign Currency Account Withdrawals

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

Cash rate is the buy/sell rate for physical cash, allowing immediate cash pickup but usually 1–2% worse than the spot rate. The spot rate is used for interbank or electronic transfers, settled within two business days, offering better rates but requiring waiting.

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

Calculate using the formula 【Yen amount = NT$ amount × current rate】. For example, Taiwan Bank’s rate on December 10, 2025, is 4.85, so NT$10,000 can get about 48,500 Yen. Using the spot rate of about 4.87, it’s roughly 48,700 Yen, just 200 Yen (about NT$40) more.

Q: What do I need to bring for counter exchange?

Taiwanese should bring ID card + passport; foreigners should bring passport + residence permit. If booking online, also bring transaction notification. Minors under 20 need a parent present; amounts over NT$100,000 may require source of funds declaration.

Q: Are there withdrawal limits at foreign currency ATMs?

Limits vary by bank. CTBC allows NT$120,000/day; Taishin NT$150,000/day; E.SUN NT$150,000/day (including debit cards). It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees. During peak times, cash may run out, so plan ahead.

Final Note

The Yen has evolved from “travel pocket money” to “hedging asset.” Choosing the right exchange method can save you over NT$2,000, and pairing it with fixed deposits or ETFs can maximize your Yen’s value. Enter gradually and act promptly—this is the smart Yen investment strategy for 2025.