How to exchange Japanese Yen most cost-effectively? Bank exchange rate comparison and a practical guide to 4 major channels

Can I still exchange for Japanese Yen now? Exchange Rate Analysis

As of December 10, 2025, the TWD/JPY quote is 4.85, which has appreciated approximately 8.7% compared to the 4.46 at the beginning of the year. For those planning to travel to Japan or allocate hedging assets, is it now advantageous to exchange for Japanese Yen?

The answer is: Yes, but it’s better to do it in installments.

The Bank of Japan Governor Ueda Kazuo has recently adopted a hawkish stance, and the market expects a rate hike to 0.75% at the December 19 meeting (a 30-year high), with Japanese government bond yields reaching a 17-year high of 1.93%. USD/JPY has fallen from the high of 160 at the start of the year to 154.58, with short-term fluctuations possibly returning to 155, but the medium- to long-term trend points below 150. For Taiwanese investors, the Yen, as one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), offers hedging value amid increased volatility in Taiwan stocks and the NT dollar facing depreciation pressure.

4 Major Ways to Exchange for Yen and Bank Exchange Rate Comparisons

Many think currency exchange is just queuing at banks, but the costs can be surprisingly different. The exchange rate difference alone could cost several hundred NT dollars more. Below is a detailed analysis.

Method 1: In-person cash exchange — the most traditional but most expensive

Bring NT dollars directly to a bank or airport counter and exchange for Yen cash on the spot. This is the most straightforward method, but it uses the “cash selling rate” (1-2% worse than the spot rate), plus some banks charge handling fees, making it the least cost-effective.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 TWD/JPY (about 4.85 JPY/TWD), better than some banks but worse than online options. For NT$50,000, the loss is approximately NT$1,500-2,000.

Bank Exchange Rate Comparison Table (as of December 10, 2025, 1 JPY to TWD)

Advantages: Simple operation, immediate cash on hand, suitable for urgent needs.
Disadvantages: Higher costs due to exchange rate spread and handling fees, limited to banking hours (9:00-15:30 on weekdays).
Ideal for: Travelers unfamiliar with online procedures or needing cash urgently at the airport.

Method 2: Online exchange + withdrawal at counter or ATM — a balanced approach

Use bank app or online banking to convert NT dollars to Yen at the “spot sell rate” (about 1% better than cash selling rate), then deposit into a foreign currency account. If cash is needed, go to a counter or foreign currency ATM to withdraw, incurring cross-bank fees or exchange spread handling fees (starting at NT$100).

Cost is approximately NT$500-1,000 (for NT$50,000), better than direct in-person exchange. Suitable for observing exchange rates and gradually entering the market when the rate is low (e.g., when NT$ to JPY drops below 4.80).

Advantages: 24/7 online operation, ability to buy in installments to average costs, better exchange rates.
Disadvantages: Need to open a foreign currency account, withdrawal incurs additional fees.
Ideal for: Users experienced in forex trading or with existing foreign currency accounts.

Method 3: Online currency exchange + airport pickup — the best pre-planning option

No need to open a foreign currency account beforehand. Simply book online via the bank’s website, specify currency, amount, pickup branch, and date. After completing the exchange, bring your ID and notification to the designated branch to pick up. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay NT$10 via TaiwanPay), with about 0.5% better rates.

Ideal for pre-trip preparation. Taoyuan Airport has 14 Taiwan Bank counters and 2 24-hour branches, allowing direct airport pickup.

Cost is about NT$300-800 (for NT$50,000), the lowest-cost option among these.

Advantages: Favorable rates, no handling fee, flexible pickup at the airport, peace of mind with advance planning.
Disadvantages: Requires 1-3 days of advance booking, pickup only during business hours.
Ideal for: Well-planned travelers who want to pick up cash directly at the airport.

Method 4: Foreign currency ATM — emergency backup

Use a chip-enabled bank card to withdraw Yen at foreign currency ATMs, which operate 24 hours and charge only NT$5 for interbank transactions. However, the number of such ATMs nationwide is limited (about 200 units), with fixed denominations (1,000/5,000/10,000 Yen), and cash may run out during peak times.

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

Cost is approximately NT$800-1,200 (for NT$50,000).

Advantages: Instant 24-hour withdrawal, high flexibility, low cross-bank fees.
Disadvantages: Limited locations, fixed denominations, possible cash shortages during busy periods.
Ideal for: Users who need cash urgently and cannot wait in line or plan ahead.

Cost comparison of the 4 methods

After Receiving Yen: How to Make Your Money Grow?

Don’t let your Yen sit idle after exchange—use the following options to grow your funds:

1. Yen Fixed Deposit — Conservative
Deposit into E.SUN or Taiwan Bank foreign currency accounts online, starting from 10,000 Yen, with annual interest rates of 1.5-1.8%. Suitable for low-risk investors.

2. Yen Insurance Policies — Medium-term hedging
Cathay and Fubon life insurance savings plans with guaranteed interest rates of 2-3%, offering both protection and appreciation.

3. Yen ETFs — Growth-oriented
Yuan Yung 00675U and other Yen index funds, bought as fractional shares via brokerage apps, suitable for dollar-cost averaging. Management fee around 0.4% annually, balancing risk and return.

4. Forex Swing Trading — Active trading
Trade USD/JPY, EUR/JPY, and other currency pairs directly on forex platforms, capturing exchange rate fluctuations. Both long and short positions, 24-hour trading, suitable for experienced investors.

Quick FAQs

Q: What’s the difference between cash exchange rate and spot rate?
Cash rate is the bank’s buy/sell price for physical bills/coins, offering immediate cash but usually 1-2% worse than the spot rate, with higher fees.
Spot rate is the T+2 settlement price in the forex market, used for electronic transfers without physical cash, closer to international market rates and more favorable, but requires waiting for settlement.

Q: How much Yen can I get with NT$10,000?
Using Taiwan Bank’s rate of 4.85 on December 10, 2025, NT$10,000 exchanges for about 48,500 Yen. With the spot rate of 4.87, it’s approximately 48,700 Yen, a difference of only 200 Yen (about NT$40).

Q: What do I need to bring for in-person currency exchange?
ID card + passport. Under 20 needs a parent’s accompaniment and consent form. Large exchanges (over NT$100,000) may require source of funds declaration. If booked online in advance, bring transaction notification.

Q: What is the daily withdrawal limit at foreign currency ATMs?
Varies by bank. CTBC and Taishin cards can reach NT$120,000-150,000 per day; E.SUN allows NT$150,000/day (including debit). Other banks depend on issuing bank rules. Using your own bank card is recommended to avoid cross-bank fees (NT$5 per transaction).

Conclusion

The Yen has long surpassed the role of just “pocket money for travel” and has become an asset with hedging and investment value. Whether for next year’s trip or as a safe haven amid NT dollar depreciation, following the three principles of “phased exchange + bank rate comparison + immediate allocation after exchange” can minimize costs and maximize benefits.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transfer Yen into fixed deposits, ETFs, or swing trading based on their needs. This way, you not only enjoy more cost-effective travel but also add an extra layer of asset protection during global turbulence.