Ultimate Guide to Yen Exchange: How to Smartly Exchange 50,000 TWD?

In December 2025, the Taiwan dollar (TWD) reached the 4.85 mark against the Japanese yen (JPY). If you’re considering traveling to Japan next year, living there long-term, or want to allocate assets using JPY, now is the time to do thorough research: how to convert your TWD to JPY without getting ripped off.

Many people think exchanging JPY just means going to the bank counter to withdraw cash, but in reality, choosing different channels can result in cost differences of over 2,000 NT dollars. We have summarized the latest four major currency exchange options for 2025, clearly explaining how to choose.

Do You Really Need to Exchange for JPY? Understand Three Reasons for Currency Exchange First

Before diving into various exchange methods, think carefully about why you want to exchange for JPY—because currency exchange isn’t only for travel.

Lifestyle: Expenses for travel, purchasing on behalf, studying abroad

Stores in Tokyo, Osaka, Kyoto are not that widely equipped with credit card facilities, especially small shops and traditional markets, many only accept cash. According to data, Japan’s credit card penetration rate is about 60%, meaning you’ll often need cash in yen for convenience stores, restaurants, and attraction tickets.

Purchasing on behalf, online shopping in Japan are also common needs. People who like buying cosmetics, clothing, anime merchandise often pay directly to agents or Japanese websites, making TWD to JPY exchange necessary. If planning to work holiday or study in Japan, usually a lump sum of JPY is exchanged in advance to avoid last-minute rate fluctuations disrupting your budget.

Financial Perspective: JPY is a globally recognized safe-haven asset

Few realize that JPY is ranked alongside USD and Swiss Franc as one of the world’s three major safe-haven currencies. This isn’t arbitrary; it’s because Japan’s economic fundamentals are stable, with low external debt ratios. During stock market turbulence or geopolitical risks, international funds tend to flow into JPY for safety.

In the week when the Russia-Ukraine conflict erupted in 2022, the JPY appreciated by 8% in a single week, while global stock markets fell by 10%. For Taiwanese investors, exchanging some JPY can serve as a hedge against Taiwan stock market volatility. In other words, JPY isn’t just “pocket money” for travel, but also an asset allocation option.

Additionally, Japan’s central bank has recently raised interest rates slightly, making JPY deposits a new highlight. The current annual interest rate for JPY fixed deposits is about 1.5-1.8%, compared to Taiwan dollar deposits at 0.5-0.7%, more than doubling the yield. If you have idle funds, converting to JPY and placing it in a JPY fixed deposit is almost a risk-free way to increase returns.

A Quick Table: 4 Ways to Exchange JPY and Their Pros & Cons

There are multiple channels to exchange JPY. Choosing the right method can save on fees and exchange rate spreads; choosing poorly can eat up NT$15,000-20,000 of a NT$50,000 exchange. Here’s a detailed analysis:

Option 1: Bank Counter Cash Exchange (Most traditional but most expensive)

Walk into a bank branch or airport counter with cash in NT$, exchange immediately for JPY cash. Simple, safe, reliable, but costly.

Bank counter exchange uses the “cash selling rate,” which is about 1-2% worse than the international spot rate. For example, Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 NT$/JPY (1 NT$ = 4.85 JPY), while the spot rate might be 4.87-4.90. The small difference adds up: exchanging NT$50,000 results in a loss of about NT$300-400.

Some banks also charge handling fees: E.SUN, Cathay United Bank, and Fubon charge NT$100-200 per transaction; Fubon also charges NT$100. Only Taiwan Bank, Mega International, CTBC, and First Bank offer fee-free counter exchange.

This method suits small, urgent needs (like realizing you need JPY just before boarding) or for elders unfamiliar with online operations. But if you have time to plan, this isn’t recommended.

Estimated cost (NT$50,000): Loss of NT$1,500-2,000

Option 2: Online Currency Exchange + ATM or Counter Withdrawal (Advanced users)

Use bank app or web platform to convert NT$ into JPY and deposit into a foreign currency account. This uses the “spot sell rate,” about 1% better than cash exchange.

To withdraw cash, you can choose counter pickup or foreign currency ATM, but an additional exchange fee applies (the difference between cash rate and spot rate, starting at NT$100).

The advantage is you can do it in installments. For example, when the rate drops below 4.80, you can buy in parts, spreading out costs instead of converting all at once. After exchanging via E.SUN app, withdrawing cash costs NT$100+ per transaction, but if you keep the JPY in the account for deposits, you don’t need to withdraw cash, reducing costs.

You need to open a foreign currency account first, which most banks make easy (online application available), but it adds an extra step.

Estimated cost (NT$50,000): Loss of NT$500-1,000

Option 3: Online Currency Settlement + Designated Branch Pickup (Best for travelers before departure)

A hidden gem. Reserve currency exchange online via bank website, fill in amount, select branch and pickup date. After the bank completes the transfer, just bring ID and transaction notice to pick up. Entire process online, no need for a foreign currency account.

Taiwan Bank’s “Easy Purchase” online settlement is especially cost-effective: almost no handling fee (pay NT$10 via TaiwanPay), about 0.5% better rate, and you can schedule pickup at 14 Taiwan Bank branches at Taoyuan Airport (including 2 24-hour locations). You can order 1-3 days before departure and pick up cash at the airport, no need to visit the bank branch.

The downside is you must book in advance, not suitable for last-minute needs. For planned travelers, this offers the best value.

Estimated cost (NT$50,000): Loss of NT$300-800

Option 4: Foreign Currency ATM 24/7 Withdrawal (No time, urgent need)

Use a chip-enabled bank card at foreign currency ATMs to withdraw JPY cash. No banking hours restriction. Services provided by banks like Fubon, deducting directly from NT$ account, with a cross-bank fee of NT$5, and no exchange fee.

Daily withdrawal limits vary: Fubon allows up to NT$150,000 equivalent; E.SUN up to NT$50,000 (50 banknotes). Cash at airports and busy locations can run out quickly, so avoid last-minute withdrawals.

Suitable for those with no time to visit banks or in urgent need of JPY, but with less than 200 ATMs nationwide, fixed denominations (1000/5000/10000 JPY), it’s less convenient.

Estimated cost (NT$50,000): Loss of NT$800-1,200

Latest 2025 Exchange Rate Quick Check

Major banks’ cash selling rates (unit: 1 JPY to NT$; date: 2025/12/10):

Taiwan Bank’s rates are usually the most competitive, but watch out for counter fees. These figures fluctuate daily; check the bank websites about an hour before exchanging.

Is it worthwhile to exchange JPY now? Rate analysis

Short-term answer: stagger your exchanges, don’t convert all at once.

At the start of the year, TWD/JPY was 4.46; now it’s risen to 4.85, an appreciation of 8.7%. In other words, if you exchanged NT$100,000 at the start of the year, it’s now worth nearly NT$110,000. For investors, this is a significant forex gain.

But exchange rates won’t rise in a straight line. Currently, JPY is quite volatile, with short-term rebounds to around 155-156, and long-term forecasts below 150. The Bank of Japan’s rate hike expectations are still brewing (Governor Ueda’s hawkish comments pushed market expectations to 80%, with a 0.25 bps hike to 0.75% expected at the December 19 meeting, a 30-year high), and Japanese bond yields hit 1.93%, a 17-year high.

These factors support JPY, but arbitrage closing risks exist. The best strategy for beginners is to buy in parts. For example, instead of converting NT$50,000 all at once, split into 3-4 transactions of NT$12,000-17,000 each, reducing costs and capturing low-rate moments.

Next steps after exchanging JPY: Don’t let your money sit idle

If you just hold the JPY cash or in your account, it’s a waste. JPY can generate returns during the overseas interest rate cycle.

JPY Fixed Deposit: The safest choice

E.SUN, Taiwan Bank, and others offer JPY fixed deposits, starting from 10,000 JPY. Current annual interest rates are about 1.5-1.8%, far better than NT$ deposits at 0.5-0.7%. Set online, no need to visit the bank, suitable for conservative investors. For example, NT$10,000 (about 50,000 JPY) in a year yields NT$150-180 interest, seemingly small but risk-free.

JPY Insurance Policies: Medium-term option with protection

Cathay Life, Fubon Life, etc., offer JPY savings insurance with guaranteed rates of 2-3%, suitable for holding 1-5 years. More secure than deposits, but less liquid (early surrender may incur losses).

JPY ETFs: Lazy investment, dollar-cost averaging

Yuan Da 00675U, Cathay 00703, tracking JPY indices, can be bought as fractional shares via broker apps. Management fee about 0.4% annually, ideal for regular purchases and risk diversification. Perfect for busy professionals wanting exposure to JPY appreciation.

Forex Trading in JPY: Advanced swing trading

Trade USD/JPY or EUR/JPY directly on forex platforms to capture short-term fluctuations. These are two-way, 24-hour markets with leverage up to 50x, suitable for risk-tolerant traders. Be cautious: short-term volatility of 2-5% is normal.

FAQ Quick Reference

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

Cash rate is the rate banks offer for physical cash (bills/coins) at counters or airports. It’s convenient but 1-2% worse than market prices.

Spot rate is used for interbank, import/export transactions, closer to real market prices. Online exchanges and transfers use this rate, but settlement takes T+2 business days.

Q: How much JPY can I get for NT$10,000 now?

Based on Taiwan Bank’s rate of 4.85, NT$10,000 ≈ 48,500 JPY. Using the spot rate 4.87, about 48,700 JPY, a difference of 200 JPY (~NT$40). Actual amounts fluctuate daily; check rates before exchanging.

Q: What ID do I need for counter exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit; company: business registration. If pre-booked online, bring transaction notice.

Minors under 20 need parent consent; amounts over NT$100,000 may require source declaration.

Q: Is there a daily limit for foreign currency ATM withdrawals?

Yes. After 2025 reforms, generally NT$100,000-150,000 per day. E.SUN allows up to NT$150,000; cross-bank limits vary. Check your bank’s rules before withdrawal. During peak seasons (airports), plan ahead to avoid shortages.

Conclusion: Choose the right method, save on currency exchange costs

JPY has evolved from just travel pocket money to a tool for hedging and income. Using the right exchange method can save NT$1,000-2,000 on a NT$50,000 exchange, while poor choices can cost unnecessary fees.

For first-time exchangers, the simplest and safest approach is Taiwan Bank’s online settlement plus airport pickup, or emergency ATM withdrawal. Once familiar, consider staggered online exchanges, turning cash into deposits or ETFs, making your funds work for you.

Finally, remember: exchange rates fluctuate every minute. Always check the latest rates before deciding. Plan your timing and channels carefully to avoid losing money on spreads and fees.