In 2025, which of these 4 methods is the most cost-effective for exchanging New Taiwan Dollars to Japanese Yen?

Speaking of exchanging Japanese Yen, many people still follow the “old routine”—going to the bank counter and lining up, unaware that they’ve already lost several hundred Taiwan dollars.

Today (2025/12/10), TWD to JPY exchange rate has reached 4.85, so if you’re planning to visit Japan or want to buy the dip on the Yen, you must know: the same 50,000 TWD can have a cost difference of over 1,500 TWD depending on the method used.

We’ve calculated the latest 4 currency exchange channels to help you find the truly most cost-effective option.

First, see how big the cost difference is

Exchanging Yen mainly involves these 4 methods: bank counter, online currency exchange, online remittance, and foreign currency ATMs. They all can exchange, but the rates and fees vary greatly.

Taking 50,000 TWD as an example:

The conclusion is clear: online remittance is the cheapest, bank counter is the most expensive.

How to choose among the 4 methods?

The cheapest: Online remittance + airport withdrawal

Book directly on the bank’s official website (Taiwan Bank “Easy Purchase”, Mega International Bank both offer this), specify the airport branch, date, and amount. After completing the remittance, bring your ID and transaction notification to the counter for pickup, done.

Advantages: Taiwan Bank has no service fee (pay with Taiwan Pay, only 10 NT$), favorable exchange rate about 0.5%, can reserve airport pickup (Taoyuan Airport has 14 Taiwan Bank branches, 2 open 24 hours).

Disadvantages: Need to book 1-3 days in advance, branch cannot change the reservation, only available during bank hours.

Suitable for: People with strong planning, only realizing a few days before departure.

The most flexible: Foreign currency ATM

Use a chip-enabled debit card to withdraw Yen directly from foreign currency ATMs at banks, available 24/7, cross-bank fee only 5 NT$. E.SUN Bank’s foreign currency ATMs allow withdrawal of Yen from a TWD account, with a daily limit of 150,000 NT$.

Advantages: Anytime withdrawal, no need to visit bank, lowest cross-bank fees.

Disadvantages: Only about 200 ATMs nationwide, denominations fixed (1,000/5,000/10,000 Yen), cash may run out during peak times.

Suitable for: Urgent needs, no time for counter visit.

The most flexible investment: Online currency exchange

Use bank app to directly convert TWD to Yen and deposit into a foreign currency account (using spot selling rate, about 1% better than cash selling rate), allowing installment purchases and rate observation. When withdrawing cash, there will be a currency conversion fee (starting around 100 NT$).

Advantages: 24/7 operation, can buy in installments, favorable rates, after exchange can directly invest in fixed deposits (annual interest rate 1.5-1.8%).

Disadvantages: Need to open a foreign currency account first, withdrawal cash incurs additional fees.

Suitable for: Those with forex experience, want to average costs by installments, planning to invest in Yen fixed deposits.

The most traditional: Bank counter exchange (not recommended)

Bring cash TWD to the bank or airport to exchange for Yen cash. Although safe and reliable with full denominations, it uses the “cash selling rate” (about 1-2% worse than spot rate), and must operate within business hours, with some banks charging fixed fees.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is about 0.2060 NT$/Yen (roughly 4.85 Yen per NT$).

Advantages: Safe, full denominations, staff assistance.

Disadvantages: Worst exchange rate, limited business hours (Weekdays 9:00-15:30), possible additional fees.

Suitable for: Those unfamiliar with online operations, only need small amounts for temporary exchange.

Quick reference of cash exchange rates at major banks

Below are the cash selling rates and counter fees on December 10, 2025 (for reference only, check official bank websites for actual rates):

Taiwan Bank and Mega Bank have the most affordable fees, but Fubon offers slightly better rates.

Is it worthwhile to exchange Yen now?

Brief answer: Yes, but buy in installments.

With TWD to Yen at 4.85, up about 8.7% from 4.46 at the start of the year, it’s a good timing for investors. Market observations show a 25% increase in Taiwan’s forex demand in the second half of the year, mainly due to travel recovery and hedging.

But it depends on the Bank of Japan’s stance. Governor Ueda recently expressed hawkish comments, with market expectations of an 80% chance of a 0.25 bps rate hike to 0.75% on December 19 (a 30-year high), and Japanese bond yields hitting a 17-year high of 1.93%. This indicates long-term support for the Yen.

Short-term volatility exists—USD/JPY dropped from a high of 160 at the start of the year to 154.58, possibly bouncing back to 155, but medium to long-term forecasts suggest below 150, with Yen appreciation still the trend.

Recommendation: Buy in installments to avoid all-in exchange, which helps average costs and reduces short-term risk.

After exchanging Yen, what’s next?

Don’t let your Yen sit idle (earning no interest). Here are 4 options suitable for small-scale beginners:

Yen fixed deposit: Conservative choice, starting from 10,000 Yen, with annual interest of 1.5-1.8% (E.SUN, Taiwan Bank offer online foreign currency deposit accounts).

Yen insurance policy: Medium-term holding, savings insurance from Cathay or Fubon Life, with guaranteed interest rates of 2-3%.

Yen ETFs: Growth-oriented, e.g., Yuanta 00675U tracking Yen index, can buy fractional shares via broker apps, suitable for dollar-cost averaging.

Forex trading: Advanced approach, directly trade USD/JPY or EUR/JPY to catch rate fluctuations, with the advantage of both long and short positions, 24-hour trading.

Although Yen is a safe-haven currency, it also has two-way volatility. For investment purposes, Yen ETFs (annual management fee 0.4%) can diversify risk; for swing trading, forex trading is a classic method.

Quick FAQ

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

Cash rate is the buy/sell rate banks offer for physical cash (bills/coins), settled immediately and portable, but usually 1-2% worse than the spot rate. Spot rate is the foreign exchange market rate for T+2 settlement, used for electronic transfers and non-cash settlement, more favorable (close to international market).

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

Using Taiwan Bank’s cash selling rate of 4.85 on December 10, 2025, about 48,500 Yen. Using the spot selling rate of 4.87, about 48,700 Yen, a difference of 200 Yen (~40 NT$).

Q. What do I need to bring for counter exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. If booked online, also bring transaction notification. Under 20 need parent’s consent; large amounts (over 100,000 NT$) may require source of funds declaration.

Q. Are there limits for foreign currency ATM withdrawals?

From October 2025, many banks have strengthened anti-fraud measures. Our bank’s daily limit is mostly 120,000-150,000 NT$, others about 20,000 NT$ per transaction. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Summary

Yen is no longer just for travel “pocket money,” but also an asset with hedging and investment value. Whether traveling or asset allocation, as long as you follow the core principles of “buy in installments + don’t leave the position idle,” you can minimize costs.

Beginners are advised to start with “Taiwan Bank online remittance + airport pickup” or “foreign currency ATM,” then transition into fixed deposits, ETFs, or even small forex swing trades based on needs. This way, you can enjoy cost-effective travel and add a layer of protection during global turbulence.