The Japanese Yen exchange rate hits 4.85! Is it now profitable to exchange for Yen? 3 cost-effective currency exchange methods

Speaking of foreign currency investments, the Japanese Yen has always been the top choice for Taiwanese people. But did you know? Choosing the wrong method to exchange Yen could cost you thousands of dollars in unnecessary fees.

As of December 10, 2025, the TWD/JPY exchange rate has surged to 4.85, appreciating over 8% compared to 4.46 at the beginning of the year. For investors, this is not just pocket money for travel, but a key option for asset allocation.

Is it worthwhile to exchange Yen now? Timing is crucial

In the short term, the Yen is in a volatile range. The US has entered a rate-cut cycle, but the Bank of Japan is raising rates in the opposite direction—expected to raise to 0.75% at the December 19 meeting (a 30-year high), directly supporting Yen appreciation. USD/JPY has fallen from 160 at the start of the year to 154.58 now, with a mid-term forecast below 150.

In the long term, Yen is a safe-haven asset. As one of the world’s three major safe-haven currencies (USD, Swiss Franc, Yen), Yen is most sought after during market turbulence—during the Russia-Ukraine conflict in 2022, Yen appreciated 8% in a week, effectively hedging stock market declines. For Taiwanese investors, this is the best choice to hedge against Taiwan stock market volatility.

Conclusion: Exchanging now is advantageous, but stagger your entries. Lump-sum exchanges risk buying at a high point; gradual operations can average the cost.

4 ways to exchange Yen, which is the most cost-effective?

Method 1: Bank counter direct exchange (most traditional, most expensive)

Walk into a bank with cash TWD to exchange for Yen directly. This is the most common method. But also the least cost-effective—because banks use the “cash selling rate,” which is about 1-2% worse than the spot rate.

Cost: 50,000 TWD exchange, loss about @E5@1,500-2,000

Advantages: Safe, quick, with staff assistance, denominations are complete.
Disadvantages: Exchange rate spread, possible additional handling fees.

Suitable scenario: Urgent need at the airport, unfamiliar with online operations.

Method 2: Online currency exchange + airport pickup (smartest choice)

No need for a foreign currency account, just book online via the bank’s website to exchange, then pick up cash at the airport branch. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (using Taiwan Pay costs only 10 TWD), and offers a 0.5% better rate.

Cost: 50,000 TWD exchange, loss about @E5@300-800

Key advantages:

• Uses “spot selling rate,” over 1% better than cash rate
• Often no handling fee
• 14 Taiwan Bank branches at Taoyuan Airport, 2 open 24 hours
• Book a few days before departure, pick up directly at the airport

Suitable scenario: Planned travelers, those wanting to ensure Yen cash before departure.

Method 3: Foreign currency ATM 24-hour withdrawal (most flexible)

Use a chip-enabled financial card to withdraw Yen directly from foreign currency ATMs. E.SUN Bank allows a daily limit of 150,000 TWD from a TWD account, with no currency exchange fee, and only 5 TWD for interbank transactions.

Cost: 50,000 TWD exchange, loss about @E5@800-1,200

Advantages: 24/7 access, no banking hours restriction, low interbank fee.
Disadvantages: Limited ATM locations (about 200 nationwide), possible cash shortages during peak times, fixed denominations (1,000/5,000/10,000 Yen).

Suitable scenario: Urgent needs, no time to visit banks.

Method 4: Online exchange + foreign currency account (most flexible, suitable for ongoing investments)

Use banking app to convert TWD to Yen and deposit into a foreign currency account, using the “spot selling rate.” Need cash to withdraw at ATM or counter later, allowing for phased entry at lower rates.

Cost: 50,000 TWD exchange, loss about @E5@500-1,000

Advantages: Can buy in phases to average costs, 24/7 operation, earn interest on Yen deposits (currently 1.5-1.8% annual rate).

Suitable scenario: Experienced forex investors, long-term Yen holders.

Our advice: How to get the most value with a budget of 50,000-200,000 TWD?

Step 1: Use “online exchange” to buy at low points. Watch the exchange trend, and buy in batches when TWD/JPY is below 4.80. Taiwan Bank’s Easy Purchase is the best choice for low fees.

Step 2: Decide withdrawal method based on purpose.

• Travel: Book airport pickup for cash
• Long-term holding: Keep a foreign currency account, deposit or invest in ETFs

Step 3: Don’t let your money sit idle after exchange. This is key—after converting Yen, avoid leaving it without earning interest.

How to generate returns after exchanging Yen (don’t let your money sit idle)

After converting Yen, how to make it grow?

1. Yen fixed deposit: 1.5-1.8% annual interest
Most stable, starting from 10,000 Yen, can be done online via E.SUN or Taiwan Bank foreign currency accounts.

2. Yen insurance policies: 2-3% annual interest
Buy savings insurance through Cathay or Fubon Life, hold medium term (3-5 years), with higher guaranteed rates.

3. Yen ETFs (00675U, 00703): growth-oriented
Yuan Tai 00675U tracks Yen index, can buy fractional shares via broker app, with only 0.4% annual management fee. Suitable for growth-seeking investors with lower risk.

4. Forex swing trading (USD/JPY): advanced play
Trade Yen directly via forex platforms (like Mitrade), supporting zero commission, low spreads, 24-hour trading. Supports long and short positions with small capital, suitable for short-term swings.

Common questions about exchanging Yen

Q: Will the Yen exchange rate continue to rise now?
A: Short-term Japan rate hikes are positive, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) could cause a 2-5% pullback. Use staggered entries to mitigate risk.

Q: What documents are needed to exchange Yen?
A: ID card + passport. Large amounts (over 100,000 TWD) may require source of funds declaration.

Q: Are there limits on foreign currency ATM withdrawals?
A: Varies by bank; generally, your own bank card has a daily limit of 120,000-150,000 TWD, other banks depend on issuing bank policies. It’s recommended to split withdrawals to avoid shortages during peak times at the airport.

Final advice

Yen is no longer just pocket money for travel but a valuable asset with hedging and investment potential. Follow the two main principles—“staggered exchange” and “immediate allocation after exchange”—to minimize costs and maximize returns.

Travel more cost-effectively, while adding a layer of protection during global market turbulence—that’s smart Yen investing.