Complete Guide to Japanese Yen Exchange: Breakdown of Costs for 4 Major Channels and the Optimal Solution

Is it cost-effective to exchange for Japanese Yen now? The data reveals the truth

As of December 2025, the TWD to JPY exchange rate is approximately 4.85, up 8.7% from 4.46 at the beginning of the year. This means that exchanging for Yen now is indeed more favorable than at the start of the year. Compared to the volatility between HKD and TWD, the Yen shows a more stable appreciation trend. Market observations indicate that Taiwan’s foreign exchange demand in the second half of the year has grown by 25%, mainly driven by a rebound in travel and increased hedging needs.

But the key question is: How to exchange without losing value due to exchange rate spreads?

The Bank of Japan Governor Ueda Kazuo recently made hawkish comments, pushing up expectations of interest rate hikes to 80%. The December 19 meeting is expected to raise rates by 0.25 basis points to 0.75% (a 30-year high), with Japanese government bond yields reaching a 17-year high of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58, with a short-term test of 155 possible, but medium to long-term forecasts suggest below 150. This rate hike cycle has supported the Yen, making it one of the three major safe-haven currencies, suitable as a hedge against Taiwan stock market volatility.

Why exchange for Yen? Three major reasons beyond travel

Practical daily needs: travel, purchasing, studying abroad

In Tokyo, Osaka, and Hokkaido, cash remains the main payment method (credit card penetration is only 60%), and Yen cash is essential for travel. Additionally, buyers of Japanese cosmetics, fashion, and anime merchandise, as well as students working part-time in Japan, face direct Yen payment needs.

Financial market perspective: hedging currency allocation value

The Yen ranks among the world’s three major safe-haven currencies alongside USD and CHF, backed by Japan’s stable economic fundamentals and low debt levels. During the Russia-Ukraine conflict in 2022, the Yen appreciated by 8% in a single week, buffering a 10% decline in the stock market. For Taiwanese investors, exchanging for Yen not only facilitates travel but also hedges systemic risks in Taiwan stocks.

Arbitrage trading and fixed deposits

Japan maintains ultra-low interest rates (0.5%), making the Yen a financing currency for global arbitrage. Many institutional investors borrow Yen at low rates and convert to higher-yield USD markets (USD-JPY interest rate differential of 4.0%). Individual investors can also earn annual interest rates of 1.5-1.8% through Yen fixed deposits.

Four channels for Taiwan to exchange Yen: Cost comparison

Option 1: Bank counter cash exchange — the most traditional but highest cost

Carry NT$ cash to a bank branch or airport counter to exchange for Yen cash. This method uses the “cash selling rate” (1-2% worse than spot rate), resulting in the highest overall cost. Recommended only as a backup.

For example, based on Taiwan Bank’s rate on December 10, 2025, 9:18 AM, the cash selling rate is 0.2060 NT$ per Yen (1 NT$ = 4.85 Yen). Some banks charge additional fixed handling fees.

Estimated cost for exchanging NT$50,000: Loss of NT$1,500-2,000

Suitable for: Travelers unfamiliar with online operations, urgent small amounts at the airport, or no time to plan.

Option 2: Online currency exchange transfer — preferred by investment-oriented users

Use bank app or online banking to convert NT$ to Yen and deposit into a foreign currency account, using the “spot sell rate” (about 1% better than cash rate). If cash withdrawal is needed later, do so at counters or foreign currency ATMs, incurring additional spread and withdrawal fees (from NT$100).

This method suits investors monitoring exchange rates, entering in batches when NT$ to Yen is below 4.80. After currency conversion via E.SUN Bank app, withdrawal fees are the difference between spot and cash rates, starting at NT$100.

Estimated cost for exchanging NT$50,000: Loss of NT$500-1,000

Suitable for: Those experienced with forex, using foreign currency accounts regularly, planning to deposit Yen (interest rate 1.5-1.8%).

Option 3: Online currency settlement with airport pickup — the best pre-departure plan

No foreign currency account needed. Fill in currency, amount, pickup branch, and date on the bank’s website. After transfer, bring ID and transaction notice to pick up in person. Taiwan Bank and Mega International offer this service, with appointment options at airport branches.

Taiwan Bank’s “Easy Purchase” online settlement is fee-free (NT$10 if paid via Taiwan Pay), with about 0.5% exchange rate advantage. Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours), making it the best pre-departure option.

Estimated cost for exchanging NT$50,000: Loss of NT$300-800

Suitable for: Planned travelers who want to withdraw directly at the airport; those who plan 1-3 days ahead.

Option 4: 24-hour foreign currency ATM withdrawal — emergency rescue

Use chip-enabled bank cards at foreign currency ATMs to withdraw Yen cash, supporting 24-hour operation and interbank withdrawals (NT$5 fee for cross-bank). Supports major currencies, with about 200 locations nationwide.

SinoPac Bank’s foreign currency ATMs allow Yen withdrawal from NT$ accounts, with a daily limit of NT$150,000 and no exchange fee. Note: Japan ATM withdrawal services will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus).

Estimated cost for exchanging NT$50,000: Loss of NT$800-1,200

Limited ATM locations, fixed denominations (1,000/5,000/10,000 Yen), cash may run out during peak times (e.g., airports). Not recommended for urgent, last-minute use.

Suitable for: Those with no time to visit banks, urgent needs, or willing to wait in line.

Cost comparison table for the 4 options

Value-added options after acquiring Yen

If Yen just sits idle without interest, it wastes the rate hike benefits. Here are four options suitable for small-scale beginners:

Yen fixed deposit: Deposit via E.SUN or Taiwan Bank online, starting from 10,000 Yen, with annual interest of 1.5-1.8%, safe and principal-protecting.

Yen insurance policy: Cathay or Fubon savings insurance, with guaranteed interest rates of 2-3%, medium-term holding (3-6 years).

Yen ETFs: Yuanta 00675U tracks Yen index, with 0.4% annual management fee, can be bought as fractional shares via broker apps, suitable for growth allocation.

Forex swing trading: Trade USD/JPY or EUR/JPY on forex platforms, capturing exchange rate fluctuations, with two-way trading, 24/7, with small capital.

The BOJ rate hikes are positive for Yen, but global arbitrage unwinding or geopolitical conflicts may suppress it. Investors should consider staggered entry, avoid full conversion at once, and choose fixed deposits, ETFs, or swing trading based on risk appetite.

Quick FAQs

Q: What’s the difference between cash rate and spot rate?
Cash rate applies to physical cash transactions (like counter exchange), with the advantage of immediate delivery; but it’s 1-2% worse than the spot rate. Spot rate is used for electronic transfers (T+2 settlement), closer to international market prices, suitable for online exchanges, foreign currency accounts, and non-cash transactions.

Q: How much Yen can I get with NT$10,000?
Calculation: 【Yen amount = NT$ amount × current rate】
Using Taiwan Bank’s December 10, 2025, cash selling rate of 4.85, NT$10,000 ≈ 48,500 Yen. Using the spot rate (~4.87), about 48,700 Yen, difference of roughly 200 Yen (~NT$40).

Q: What ID do I need for counter exchange?
Taiwanese: ID card + passport; foreigners: passport + residence permit; companies: business registration. If pre-booked online, bring transaction notice. Under 20 needs parent’s consent; large amounts (>NT$100,000) may require source of funds declaration.

Q: What’s the daily limit for foreign currency ATM withdrawal?
From October 2025, limits are generally reduced to NT$100,000-150,000 equivalent per day. CTBC and Taishin: NT$120,000-150,000 per transaction and daily; E.SUN: NT$50,000 per transaction, NT$150,000 daily. It’s recommended to split withdrawals or use your bank’s card to avoid cross-bank fees.

Final advice

Yen is no longer just travel “pocket money” but a valuable asset for hedging and investment. The current exchange rate of 4.85 compared to 4.46 at the start of the year offers a clear advantage, especially under NT$ depreciation pressure.

Whether preparing for next year’s Japan trip or seeking hedging opportunities, following the principles of “batch exchange” and “don’t leave it idle after exchanging” can minimize costs and maximize returns. Beginners are advised to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then transition into fixed deposits, ETFs, or swing trading based on needs. Not only is it more cost-effective for travel, but it also provides an extra layer of protection amid global market fluctuations.