Is the best time to exchange TWD for JPY here? An article analyzing 4 major exchange methods and costs

Is it really time to exchange for Japanese Yen now?

As of December 10, 2025, the TWD/JPY exchange rate stands at 4.85, appreciating about 8.7% from 4.46 at the beginning of the year. At first glance, the rate looks favorable, but the key question is—is it really cost-effective to exchange for Yen now?

Not only travelers are paying attention to this issue; more and more investors are starting to view the Yen as part of their asset allocation. On one hand, the Bank of Japan is about to raise interest rates (market expectations are to increase to 0.75% on December 19, reaching a 30-year high). On the other hand, the Yen, as one of the world’s three major safe-haven currencies, has its value under pressure from the depreciation of the TWD.

But here’s a crucial point: Don’t exchange all at once; staggered entry is the way to go. Why? Because the forex market is highly volatile. Currently, USD/JPY is oscillating between 154-160, with short-term fluctuations of 2-5%. The smart approach is to buy in batches at low points (when TWD/JPY is below 4.80), to average down the cost.

Is it worth exchanging for Yen? From travel to investment

When it comes to exchanging for Yen, many people only think of traveling abroad, but it’s much more than that:

Travel and Shopping: Shopping in Tokyo, Osaka, skiing in Hokkaido—most merchants still only accept cash (credit card penetration is about 60%), and purchasing agents or Japanese online auctions also require Yen for payments.

Financial Investment Perspective: The Yen has long been ranked alongside the USD and Swiss Franc as a safe-haven currency, attracting capital inflows during market turbulence. For example, during the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week, effectively buffering stock market declines. For Taiwanese investors, exchanging for Yen isn’t just for travel; it can also hedge against Taiwan stock market risks.

Arbitrage Opportunities: Japan’s ultra-low interest rate (0.5%) versus the US’s higher rate (4.5%) creates a 4.0% interest differential, enabling many investors to perform arbitrage.

The 4 most common currency exchange channels used by Taiwanese people

Exchanging Yen may seem simple, but the cost differences are astonishing. Let’s break down each method:

1. Traditional in-person currency exchange—safe but most expensive

Bringing cash TWD to a bank or airport counter to exchange for Yen is the most common method. However, note that banks use cash selling rates (1-2% worse than spot rates), plus possible service fees, so NT$50,000 might cost an extra NT$1,500-2,000.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is about 0.2060 TWD/JPY (meaning NT$1 = 4.85 Yen). Some banks also charge fixed handling fees.

Suitable for: Those unfamiliar with online operations or needing urgent cash at the airport.

2. Online exchange + cash withdrawal at counter or ATM—balanced approach

This method involves using bank apps or online banking to convert at spot rates (about 1% better). If you need cash, go to a counter or foreign currency ATM, which incurs a withdrawal fee (around NT$100).

Advantages: 24-hour operation, allows for staggered entry to average costs. Disadvantages: need to open a foreign currency account, and withdrawal incurs extra fees. Exchanging NT$50,000 costs about NT$500-1,000.

Suitable for: Those experienced with forex operations, wanting to buy in low points, or planning to deposit Yen fixed deposits (current annual interest 1.5-1.8%).

3. Online currency exchange with no reservation fee—secret weapon for travelers

The smartest approach. No need for a foreign currency account. Just fill in the amount, pick a branch and date on the bank’s website, then bring ID and transaction notification to pick up in person. Taiwan Bank’s “Easy Purchase” online currency exchange even waives handling fees (pay NT$10 via TaiwanPay), with a favorable rate advantage of 0.5%.

Key advantage: can specify Taoyuan Airport branches (14 locations, 2 open 24 hours). NT$50,000 costs only NT$300-800. The only limitation is to book 1-3 days in advance; branch changes are not allowed on the spot.

Suitable for: Well-planned travelers who want to pick up cash directly at the airport before departure.

4. Foreign currency ATMs—night-time emergency hero

Using a chip-enabled bank card to withdraw Yen at foreign currency ATMs, open 24/7. Deducts NT$5 cross-bank fee from your TWD account, no currency exchange fee. But a key point: ATM withdrawal limits vary by bank.

SinoPac’s foreign currency ATM limit is NT$150,000 per day; CTBC’s equivalent is NT$120,000; E.SUN’s is NT$150,000 (including debit cards). Note that from October 2025, many banks have lowered the daily ATM withdrawal limit for third-party digital accounts to NT$100,000, mainly for fraud prevention but reducing convenience.

Note: During peak times (airports, year-end holidays), foreign cash may run out quickly. Planning ahead is crucial.

Suitable for: Those with no time to visit banks or needing cash late at night.

Summary of the 4 exchange methods: costs and scenarios

After exchanging Yen—don’t let your money sit idle

Exchanging Yen is just the first step; the key is to make your money work:

Yen fixed deposit: The safest choice, starting from 10,000 Yen, with annual interest rates of 1.5-1.8%. E.SUN Bank and Taiwan Bank offer these.

Yen ETFs: For example, Yuanta 00675U tracks the Yen index. You can buy fractional shares via brokerage apps for dollar-cost averaging, with an annual management fee of 0.4%. Suitable for investors expecting growth.

Yen insurance policies: Cathay and Fubon’s foreign currency savings insurance offer guaranteed interest rates of 2-3%, suitable for medium-term holding of 3-5 years.

Forex swing trading: Trade USD/JPY or EUR/JPY based on currency fluctuations. Some forex platforms offer zero-commission, low-spread services, suitable for experienced traders.

Quick FAQs

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

Cash rate is used for physical cash transactions, done immediately but usually 1-2% worse than spot. Spot rate is the market quote, settled within two business days, more favorable but requires waiting. In short, cash rate is convenient and quick; spot rate is cheaper.

Q. How much Yen do I get for NT$10,000?

Using Taiwan Bank’s cash selling rate of 4.85: NT$10,000 × 4.85 = 48,500 Yen. Using the spot rate of 4.87, it’s about 48,700 Yen, a difference of roughly 200 Yen (about NT$40).

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

ID + passport (for locals); foreigners need passport + residence permit. If pre-booked online, also bring transaction notification. Under 20 years old, need parent’s consent and ID. For amounts over NT$100,000, may need to declare source of funds.

Q. How to calculate ATM withdrawal limits?

Post-2025 regulations, most banks’ own card daily limit is NT$120,000-150,000, but third-party digital accounts are limited to NT$100,000/day. Use your own bank card and spread withdrawals over time, especially during peak hours when cash may run out.

Final advice

Yen is no longer just travel “pocket money”—it’s an asset with hedging and investment value. Whether for your trip to Japan next year or asset allocation, follow the two principles: staggered exchange + don’t leave your money idle after exchanging to lower costs and maximize gains.

Beginners should start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM”. After familiarization, consider fixed deposits, ETFs, or swing trading based on your needs. This way, you not only enjoy cost-effective travel but also add a layer of protection during global market turbulence.