Japanese Yen exchange rate breaks 4.85! Actual cost test of four major currency exchange channels, save the most with this method

Amid the wave of Taiwanese dollar depreciation, more and more people are investing in or traveling with Japanese yen. By mid-December 2025, the yen exchange rate has reached approximately 4.85 yen per 1 TWD. For investors comparing it to HKD to JPY, the yen’s safe-haven appeal is also worth noting. But did you know? Just choosing the wrong currency exchange channel could cost an extra NT$1,500 to NT$2,000 on a NT$50,000 transaction. We have thoroughly analyzed the actual costs of four methods: bank counter exchange, online exchange, online settlement with branch pickup, and foreign currency ATMs, to tell you the most cost-effective currency exchange strategy.

Why is the yen worth paying attention to? Not just for travel currency

Many think exchanging for yen is just for carrying cash when traveling abroad, but in reality, the yen’s position in the financial market is far beyond that.

High demand in travel and consumption: Cash still accounts for over 65% of transactions nationwide in Japan. Shopping in Tokyo, Osaka, skiing in Hokkaido, or vacationing in Okinawa all require cash. Taiwanese consumers purchasing Japanese cosmetics, fashion, and anime merchandise often need to pay directly in yen.

From an investment perspective, the yen is one of the three major safe-haven currencies: Alongside USD and Swiss Franc, the yen is a global safe-haven asset. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a single week, effectively hedging stock market declines. For investors holding Taiwanese stocks, allocating yen can diversify risk. Recently, the Bank of Japan has shifted to a hawkish stance, with Governor Ueda Kazuo signaling imminent rate hikes. Market expectations are for a rise to 0.75% by December 19, reaching a 30-year high, with Japanese government bond yields surging to 1.93%, a 17-year high.

Therefore, exchanging for yen is not just about travel demand but also an asset allocation option.

Cost comparison of four major currency exchange channels: Who is the cheapest?

We calculated the actual costs as of December 10, 2025, based on prevailing rates, for exchanging NT$50,000:

Method 1: Bank counter direct cash exchange

The traditional approach: bring cash NT$ to a bank or airport counter to exchange for yen cash. Banks use the “cash selling rate,” which is 1-2% worse than the international spot rate. For example, Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 NT$ per yen (i.e., NT$1 = 4.85 yen).

Bank counter exchange rates and fees:

Cost estimate: NT$50,000 exchanged at Taiwan Bank yields about 242,500 yen, with a cost loss of NT$1,500–NT$2,000.

Suitable for: Small, urgent needs (e.g., at the airport), or those unfamiliar with online operations.

Disadvantages: Must operate during bank hours (weekday 9:00-15:30). The exchange rate difference plus fees make this the most expensive overall.

Method 2: Online exchange then cash withdrawal at counter or ATM

Use bank app or online banking to convert NT$ into yen in a foreign currency account, using the “spot sell rate” (about 1% better than cash rate), then withdraw cash at counter or foreign currency ATM, incurring a withdrawal fee.

For example, E.SUN Bank’s online exchange followed by counter withdrawal incurs a fee equal to the rate difference, starting at NT$100.

Cost estimate: NT$50,000 online exchange yields about 243,500 yen, plus withdrawal fees, total loss NT$500–NT$1,000.

Advantages: 24/7 operation, can split into multiple transactions to average costs, better exchange rate than counter. Suitable for monitoring rates and buying in tranches at low points. After exchange, funds can be transferred directly into foreign currency fixed deposits, with current yen deposit rates around 1.5–1.8%.

Disadvantages: Need to open a foreign currency account first; cross-bank withdrawal fees apply.

Suitable for: Experienced forex traders planning to hold yen long-term.

Method 3: Online settlement with branch pickup (best option)

No need for a foreign currency account. Simply select currency, amount, branch, and date on the bank’s website. After completing online settlement, present ID and transaction notice at the branch to pick up. Taiwan Bank’s “Easy Purchase” online settlement is fee-free (pay NT$10 via TaiwanPay), with about 0.5% better rates. Mega Bank also offers this service.

Cost estimate: NT$50,000 online settlement yields about 244,200 yen, costing NT$300–NT$800 more.

Main advantage: Most convenient before travel; Taoyuan Airport has 14 Taiwan Bank branches (2 open 24 hours), allowing direct airport pickup, saving time.

Disadvantages: Requires prior appointment (at least 1-3 days ahead). Pickup time limited to bank hours; once booked, branch cannot be changed.

Suitable for: Planning travelers who want to settle everything before departure and pick up at the airport.

Method 4: Foreign currency ATM 24-hour instant withdrawal

Use chips financial card at foreign currency ATMs to withdraw yen cash anytime. Cross-bank withdrawals cost NT$5 per transaction. E.SUN Bank’s foreign currency ATM allows direct withdrawal from NT$ account, with a daily limit of NT$150,000 and no additional exchange fee.

Cost estimate: NT$50,000 withdrawal via ATM costs about NT$800–NT$1,200, between counter and online methods.

Advantages: Highest flexibility, suitable for urgent needs, no bank hours restrictions.

Disadvantages: Only about 200 ATMs nationwide, fixed denominations (1,000, 5,000, 10,000 yen). During peak times (e.g., airports), cash may be insufficient. Planning ahead is recommended.

Suitable for: Emergency, no time to visit branches.

Quick comparison table of four methods

Is it really cost-effective to exchange yen now?

Exchange rate status: As of mid-December 2025, TWD/JPY is about 4.85, up 8.7% from 4.46 at the start of the year. Second half of 2025, forex demand in Taiwan grew 25%, mainly due to travel recovery and hedging needs.

Future trend analysis: USD/JPY dropped from 160 high at the start of the year to 154.58 now. Short-term fluctuations may bring it back to 155, but medium to long-term forecasts suggest below 150. The BOJ’s rate hikes support the yen, but global arbitrage unwinding and geopolitical risks (Taiwan Strait, Middle East) could cause 2-5% volatility.

Investment advice:

• Travel: Current yen rates are reasonable; lock in via online settlement 1-2 weeks before departure.
• Investment: Yen as a safe asset can hedge Taiwan stocks, but stagger entries to avoid all-in risk.
• Rate monitoring: In a cycle of US rate cuts + Japanese rate hikes, the yen still has medium-long term support.

After exchanging yen: let your money work for you

Don’t let your yen sit idle. Consider these options:

Yen fixed deposit: Stable income, open with E.SUN or Taiwan Bank, starting from 10,000 yen, annual interest 1.5–1.8%.

Yen insurance policies: Medium-term asset allocation; Cathay, Fubon offer yen savings insurance with 2–3% guaranteed interest.

Yen ETFs (00675U, 00703): Growth options; e.g., Yuanta 00675U tracks yen index, can be bought as fractional shares via broker apps.

Forex swing trading: Advanced; trade USD/JPY or EUR/JPY directly, capturing rate fluctuations, with long/short positions, 24-hour trading.

Common questions about exchanging yen

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

Cash rate (Cash Rate): applies to physical cash buying/selling, immediate delivery, but with 1-2% rate difference and fees. Spot rate (Spot Rate): used in electronic transfers, T+2 settlement, more favorable but requires waiting.

Q. How much yen for NT$10,000?

Formula: Yen = NT$ amount × rate. Using December 10, 2025, Taiwan Bank cash selling rate 4.85, NT$10,000 ≈ 48,500 yen. Using spot rate 4.87, ≈ 48,700 yen.

Q. What ID do I need for counter exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. For online booking, also bring transaction notice. Under 20 need parental consent; over NT$100,000 may require source declaration.

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

Varies by bank (from October 2025): CTBC allows equivalent of NT$120,000 per day; Taishin NT$150,000; E.SUN NT$50,000 (50 notes), daily NT$150,000 (including card transactions). Cross-bank limits depend on issuing bank; using your own bank card saves NT$5 cross-bank fee.

Q. What’s the exchange rate for HKD to JPY?

HKD/JPY trend is relatively independent; around 18–19. Consider different hedging properties for diversification.

Conclusion

Yen is no longer just “pocket money for travel” but a safe-haven and income-generating asset. Whether for next year’s trip or asset hedging, mastering “split batch exchange + don’t leave money idle” can lower costs and increase 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. This way, you can enjoy cost-effective travel and added protection amid global market volatility.