Japanese Yen Exchange Guide: 4 Methods Comparison of Costs and the Best Timing

December 10, 2025, the Taiwan dollar to Japanese yen exchange rate fluctuates around 4.85. The number of people planning to travel abroad or allocate yen as a hedge asset is gradually increasing. But before taking action, you need to clarify: which currency exchange method is the cheapest? What is the limit for small transfers? When is the best time to exchange?

We will analyze the actual costs, pros and cons, and suitable scenarios of Taiwan’s four major yen exchange channels.

Is the Japanese Yen worth investing in? From travel to asset allocation

Many people think of yen first when it comes to foreign currencies, and there’s a reason for that.

Travel and consumption: Cash usage in major Japanese cities remains high (credit card penetration is only 60%), and purchasing agents, online shopping, and long-term working holidays all require yen.

Financial aspect: The yen is one of the three major safe-haven currencies globally (alongside USD and Swiss Franc). During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a single week, while the stock market fell 10%. For Taiwanese investors, holding yen can hedge against Taiwan stock risks. Additionally, the Bank of Japan is on the verge of raising interest rates—recent hawkish statements by Governor Ueda Kazuo have pushed expectations of a rate hike to 80%, with a 0.25 basis point increase to 0.75% expected on December 19 (a 30-year high). USD/JPY has fallen from a high of 160 at the start of the year to 154.58, with a medium-term forecast below 150.

Four ways to exchange yen

Method 1: Online currency exchange, pick-up at airport

No need to open a foreign currency account. Fill in currency, amount, and pick-up branch on the bank’s website, then bring ID and transaction notification to the counter for collection.

Taiwan Bank’s “Easy Purchase” offers this service, often with no handling fee (Taiwan Pay payment only 10 NT$), and about 0.5% better exchange rate. This is the most efficient way before traveling, especially since Taoyuan Airport has 14 Taiwan Bank branches, including 2 open 24 hours.

• Advantages: Better exchange rate, low fees, appointment for airport pick-up, no need to open an account beforehand
• Disadvantages: Need to book 1-3 days in advance, pick-up limited by business hours
• Estimated cost (NT$50,000): loss of NT$300-800
• Suitable for: Planned travelers, long-term investors

Method 2: Online currency exchange, gradual entry

Use bank app or online banking to convert TWD to yen, deposit into a foreign currency account, using “spot selling rate” (about 1% better than cash selling). If cash withdrawal is needed, go to the counter or use a foreign currency ATM, but there will be a spread fee (minimum NT$100).

This method suits those observing exchange rate trends, entering in stages when the rate is low (e.g., TWD/JPY below 4.80). E.SUN Bank’s app offers this service, with a minimum purchase of 10,000 yen, and fixed deposit interest rates up to 1.5-1.8%.

• Advantages: 24-hour operation, average cost over time, better rates, can combine with fixed deposits for higher returns
• Disadvantages: Need to open a foreign currency account first, withdrawal fees (interbank NT$5-100)
• Estimated cost (NT$50,000): loss NT$500-1,000
• Suitable for: Those experienced in forex, planning to hold yen long-term

Method 3: Foreign currency ATM cash withdrawal

Use a chip-enabled bank card to withdraw yen cash at foreign currency ATMs, available 24/7. Deducts NT$5 interbank fee from TWD account. Daily transfer limits vary by bank.

SinoPac Bank’s foreign currency ATM allows withdrawal of yen from TWD accounts with a daily limit of NT$150,000, no exchange fee. Other banks (Taishin, CTBC) have small transfer limits around NT$100,000-120,000 (new regulations 2025). About 200 foreign currency ATMs nationwide.

Note: Japan will switch to international cards (Mastercard/Cirrus) for ATM withdrawals by end of 2025. Avoid last-minute use, as cash may run out during peak hours.

• Advantages: Instant cash, flexible, low cross-bank fees, relatively high transfer limits
• Disadvantages: Limited ATM locations, fixed denominations (1,000/5,000/10,000 yen), possible out-of-stock during peak times
• Estimated cost (NT$50,000): loss NT$800-1,200
• Suitable for: Urgent needs, busy professionals

Method 4: Over-the-counter exchange (backup plan)

Bring cash in TWD to bank branches or airport counters to exchange for yen cash. Simple but uses “cash selling rate” (1-2% worse than spot rate), with some banks charging additional fees.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is about NT$0.2060 per yen (1 NT$ = 4.85 yen). Recommended only as an emergency backup.

Bank cash selling rates (2025/12/10):

• Taiwan Bank: 0.2060 (no fee)

• Mega Bank: 0.2062 (no fee)

• CTBC: 0.2065 (no fee)

• First Bank: 0.2062 (no fee)

• E.SUN Bank: 0.2067 (NT$100 per transaction)

• SinoPac: 0.2058 (NT$100 per transaction)

• Advantages: Safe, reliable, full denominations, on-site assistance

• Disadvantages: Worst exchange rate, limited business hours (9:00-15:30), additional fees

• Estimated cost (NT$50,000): loss NT$1,500-2,000

• Suitable for: Those unfamiliar with online methods, urgent small amounts at the airport

Cost comparison: NT$50,000 exchange

When is the best time to exchange yen?

The TWD/JPY rate has risen from 4.46 to 4.85 this year, an appreciation of 8.7%. But that doesn’t mean now is the best time.

Recent market conditions: The BOJ’s rate hike prospects may strengthen the yen, but global arbitrage unwinding and geopolitical risks could weigh on it. Short-term USD/JPY forecast is around 154-155, with a medium-term target below 150.

Investor advice:

• Travel purposes: It’s acceptable to exchange now, no need to wait for the low point
• Hedging: Use staggered entry, avoid exchanging all at once. Consider online exchange below 4.80 in stages
• Short-term trading: Prepare for 2-5% swings, consider USD/JPY or EUR/JPY for trading

After exchanging yen? Make idle funds earn interest

Once you have yen, don’t let it sit idle without interest. Consider the following allocations:

1. Yen fixed deposit: Stable, E.SUN/Taiwan Bank annual interest 1.5-1.8%, starting from 10,000 yen.

2. Yen insurance policies: Medium-term holding, Cathay/Fubon savings insurance, guaranteed interest 2-3%.

3. Yen ETFs (e.g., Yuanta 00675U, 00703): Growth-oriented, tracking yen indices, can buy fractional shares for dollar-cost averaging, annual management fee 0.4%.

4. Forex swing trading: Direct trading of USD/JPY or EUR/JPY, long and short, 24-hour trading.

Common questions about yen exchange

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

Cash rate is the rate banks offer for physical cash, with the advantage of immediate delivery but 1-2% worse than spot rate plus fees. Spot rate is used for electronic transfers (T+2 settlement), more favorable but requires waiting.

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

Using Taiwan Bank’s cash rate of 4.85, NT$10,000 ≈ 48,500 yen. With spot rate 4.87, about 48,700 yen, a difference of 200 yen (~NT$40).

Q. What to bring for over-the-counter exchange?

ID + passport. For online booking, also bring transaction notification. Under 20 years old need parental accompaniment; amounts over NT$100,000 may require source declaration.

Q. What’s the limit for foreign currency ATM withdrawals?

Varies by bank. CTBC about NT$120,000/day, Taishin about NT$150,000/day, E.SUN about NT$150,000/day (including debit). Small transfer limits have been reduced under new regulations; consider spreading withdrawals or using your own bank card to avoid cross-bank fees.

Action tips

Yen is no longer just travel “pocket money,” but also a hedge and small investment asset. The simplest entry for beginners is “Taiwan Bank online exchange + airport pick-up” or “foreign currency ATM,” then move into fixed deposits, ETFs, or swing trading as needed.

Staggered exchange combined with the principle of not leaving funds idle can lower costs and increase returns. When traveling or markets fluctuate next time, you’ll be more confident.