Is it more cost-effective to exchange Japanese Yen for New Taiwan Dollars? The latest 2025 exchange rates and analysis of 4 major exchange options

The Taiwanese dollar depreciation expectations are heating up, and the Japanese yen is becoming a popular safe-haven asset. As of December 2025, the TWD/JPY exchange rate has surpassed 4.85, with an accumulated appreciation of 8.7% over the year. Many investors and travelers are starting to seriously consider the timing for exchanging yen. But the key question is: How to exchange without paying unnecessary extra costs?

We have collected the latest data on four major currency exchange channels, analyzing their costs and processes one by one to help you find the most suitable solution.

Why has the Japanese yen become a hot target?

Exchanging yen is not just for traveling abroad. From a financial market perspective, the yen is recognized as one of the three major safe-haven currencies globally (the other two are the US dollar and Swiss franc). Japan’s economy is stable, with relatively low debt levels. When global markets are turbulent, capital tends to flow into the yen for safety. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a single week, while the stock market fell by 10%—this demonstrates the power of safe-haven assets.

For Taiwanese investors, holding some yen amid the depreciation pressure on the TWD is not only for travel preparation but also an effective asset hedging strategy.

At the same time, the Bank of Japan’s interest rate hike expectations are rising. Governor Ueda Kazuo recently made hawkish comments, boosting market expectations to 80%, with a rate hike of 0.25 basis points to 0.75% expected at the December 19 meeting (a 30-year high). Japanese government bond yields have already hit a 17-year high of 1.93%. This further supports the upward momentum of the yen.

Four practical exchange channels for converting yen to TWD

Many people instinctively go to the bank counter to exchange currency, but just the exchange rate difference can cost you several thousand NT dollars. Below is a breakdown of the costs for four options:

Option 1: Bank counter cash exchange (traditional but expensive)

Bring cash TWD to a bank branch or airport counter to exchange directly for yen cash. The process is simple, but using the “cash selling rate” (about 1-2% worse than the spot rate), plus possible handling fees, results in the highest overall cost.

Based on major banks’ rates on December 10, 2025, the cash selling rate is approximately 0.2058-0.2069 TWD/JPY, meaning 1 TWD can buy about 4.80-4.87 JPY. Exchanging 50,000 TWD would result in a loss of about 1,500-2,000 NT dollars.

Advantages: Safe, straightforward, full denominations available, staff assistance on-site
Disadvantages: Poor exchange rate, limited business hours (weekday 9:00-15:30), additional handling fees
Best suited for: Urgent airport needs, elderly unfamiliar with online operations

Option 2: Online currency exchange + in-person or ATM withdrawal (moderate cost)

Use bank app or online banking to convert TWD into JPY and deposit into a foreign currency account, using the spot selling rate (about 1% discount). If cash is needed, withdraw in person at the bank or via foreign currency ATM, which incurs additional fees.

This method is suitable for those experienced with forex, wanting to gradually build positions at lower rates. You can accumulate when the rate is relatively low (e.g., TWD/JPY below 4.80), but you need to open a foreign currency account first. Exchanging 50,000 TWD costs about 500-1,000 NT dollars.

Advantages: 24/7 operation, allows dollar-cost averaging, better rates
Disadvantages: Need to open a foreign currency account, withdrawal fees apply
Best suited for: Forex investors, long-term holders

Option 3: Online currency settlement + designated branch pickup (best planning option)

No need to open a foreign currency account. Fill in the currency, amount, pickup branch, and date on the bank’s official website. After remittance, bring ID and transaction notification to the branch for pickup. Taiwan Bank’s “Easy Purchase” online settlement is fee-free (pay via TaiwanPay, only NT$10), with about 0.5% better rates.

Taoyuan Airport has 14 Taiwan Bank outlets (including 2 open 24 hours), suitable for pre-departure pickup. Cost for 50,000 TWD is about NT$300-800.

Advantages: Favorable rates, often no handling fee, can pre-book airport pickup
Disadvantages: Requires prior reservation (1-3 days), cannot change branch at short notice
Best suited for: Planned travelers, those with ample pre-trip planning

Option 4: Foreign currency ATM instant withdrawal (fastest but limited)

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen cash, available 24 hours. E.SUN Bank’s foreign currency ATMs allow withdrawal from TWD accounts, with a daily limit of NT$150,000, no exchange fee, and only NT$5 cross-bank fee. However, there are about 200 such ATMs nationwide, and cash may run out during peak times.

Exchanging 50,000 TWD costs about NT$800-1,200.

Advantages: Instant withdrawal, 24/7 access, low cross-bank fees
Disadvantages: Limited ATM locations, fixed denominations (1,000/5,000/10,000 JPY), cash shortages at peak times
Best suited for: Urgent needs, those who cannot visit banks

Cost comparison table of the four options

Timing considerations for exchanging yen now

Short-term: Fluctuation range 155-160

The yen’s appreciation momentum comes from the Bank of Japan’s rate hike expectations, but the US rate cut cycle is not yet clear. USD/JPY has fallen from 160 at the start of the year to 154.58 now, and may test 155 in the short term, but it’s unlikely to reach 160 in the medium to long term.

Medium to long-term: Structural strength

Long-term safe-haven demand supports the yen, and with the BOJ tightening policy, the yen is expected to trade below 150. For investors, now is a good time to buy yen—but don’t exchange all at once.

Recommended approach: Divide into three batches, spaced 1-2 weeks apart, to reduce risk.

Asset allocation after converting yen to TWD

After converting to yen, don’t let the money sit idle. Based on your risk appetite, here are four ways to grow your assets:

Conservative: Yen fixed deposit (1.5-1.8% annual interest)
Open a foreign currency account with a minimum of 10,000 yen (~NT$200+), suitable for beginners with no prior experience.

Steady: Yen insurance policy (2-3% guaranteed interest)
Buy savings insurance from Cathay or Fubon Life, locking in medium-term returns.

Growth: Yen ETFs (annual management fee 0.4%)
Yuanta 00675U tracking yen index, buy fractional shares via brokerage apps, suitable for regular investment.

Advanced: Forex swing trading (long and short positions)
Trade USD/JPY or EUR/JPY directly on forex platforms, suitable for investors with risk tolerance.

Note: The BOJ’s rate hikes are short-term positive for the yen, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) may cause short-term reversals. Always assess your personal risk capacity before investing.

Frequently Asked Questions

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

Cash rate is the bank’s rate for physical cash, with the advantage of immediate delivery but typically 1-2% worse than the market rate. Spot rate is the foreign exchange market rate for settlement within two business days (T+2), closer to international market prices, but requires waiting for settlement.

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

Using Taiwan Bank’s December 10, 2025, cash selling rate of 4.85, NT$10,000 can buy about 48,500 JPY. Using the spot rate of 4.87, it’s about 48,700 JPY, a difference of only 200 JPY (~NT$40).

Q: What do I need to bring for in-person exchange?

For locals: ID card + passport. For foreigners: passport + residence permit. If pre-booked online, also bring transaction notification. Under 20 years old requires a parent’s accompaniment; amounts over NT$100,000 may require source of funds declaration.

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

Post-2025 regulations, most banks limit daily withdrawal to NT$100,000-150,000. Our bank’s card has no cross-bank fee (NT$5 per transaction). It’s recommended to split withdrawals or use your bank’s card. During peak times, cash may run out, so plan ahead.

Final advice

The yen is no longer just for travel pocket money but also a safe-haven and small investment asset. Whether you plan to visit Japan next year or want to hedge against TWD depreciation by buying yen, following the principles of “gradual exchange and not sitting idle after converting” can minimize costs.

Beginners are advised to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then, based on your needs, move into fixed deposits, ETFs, or even small forex swing trades. This way, you can enjoy cost-effective travel and add a layer of protection during global market turbulence.