Japanese Yen Exchange Practical Guide: Comparing the Costs of 4 Major Channels

December 2025, the Taiwanese dollar (TWD) against the Japanese yen (JPY) reaches 4.85, marking a peak period for travel to Japan and yen investments. But do you know? Choosing the wrong exchange method could cost you over 2,000 TWD in exchange rate differences and fees. This article analyzes the latest four major exchange paths to help you find the most suitable option.

Why is the Japanese yen so popular?

In Taiwan’s foreign currency market, demand for the yen is increasing year by year, driven by two main factors.

Travel and daily expenses

Shopping in Tokyo, skiing in Hokkaido, vacation in Okinawa—all require cash payments. Although electronic payments are widespread in Japan, cash remains mainstream, especially in traditional stores and rural areas. Additionally, those purchasing Japanese cosmetics, anime merchandise, and peripherals need to transfer funds directly or spend cash in yen.

Hedging and investment attributes

The yen is one of the world’s three major safe-haven currencies (alongside the US dollar and Swiss franc). Japan’s stable economy and low debt attract 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 is not just for leisure but also a tool to hedge against Taiwan stock risks.

At the same time, Japan’s ultra-low interest rate environment (only 0.5%) makes the yen a funding currency. Arbitrage traders often borrow yen to exchange for USD to profit from interest rate differentials.

Is exchanging for yen worth it in 2025?

Exchange rate analysis

As of December 10, 2025, the TWD to JPY rate is about 4.85. Compared to 4.46 at the beginning of the year, it has appreciated approximately 8.7%—a considerable gain for investors holding yen assets.

With the US entering a rate-cut cycle, the yen has gained support. But more crucially, the Bank of Japan’s rate hike expectations are rising: Governor Ueda’s hawkish comments have pushed expectations of a 0.25 bps 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%.

The USD/JPY rate has fallen from a high of 160 at the start of the year to around 154.58 now. Short-term, it may rebound to 155, but medium to long-term forecasts suggest it will stay below 150.

Investment advice

Exchanging for yen is worthwhile but should be done in stages. The short-term risk involves arbitrage positions closing, which could cause fluctuations of 2-5%. It is recommended not to exchange all at once but to do it gradually to average the cost.

In the second half of the year, Taiwan’s foreign exchange demand increased by 25%, mainly due to travel recovery and hedging needs, indirectly confirming market sentiment.

Four major exchange channels tested and compared

Many think exchanging yen means going to the bank, but the costs vary greatly. We calculated the real prices to show how much a 50,000 TWD exchange costs differently.

Option 1: Bank counter cash exchange

The most traditional method—bring cash TWD to a bank or airport counter to exchange for yen cash.

Cost components Using the “cash selling rate” (about 1-2% worse than spot rate), plus handling fees, results in the highest overall cost. For example, Taiwan Bank’s cash selling rate is about 0.2060 (1 TWD = 4.85 yen).

Pros and cons overview

• ✓ Safe and reliable, immediate delivery, full denominations
• ✗ Exchange rate spread, limited business hours (Weekdays 9:00-15:30), possible extra fees
• Estimated cost (50,000 TWD): loss of 1,500–2,000 TWD
• Suitable for: unfamiliar with online methods, urgent airport needs, small amounts

Major bank cash rates reference (2025/12/10)

• Taiwan Bank: 0.2060, no fee
• Mega Bank: 0.2062, no fee
• CTBC Bank: 0.2065, no fee
• E.SUN Bank: 0.2067, 100 TWD per transaction fee
• Taipei Fubon: 0.2069, 100 TWD per transaction fee

Option 2: Online foreign exchange + foreign currency account

Use bank app or online banking to convert TWD to yen at the “spot sell rate” (about 1% better than cash rate). Store in a foreign currency account; withdrawal for cash incurs additional exchange or cross-bank fees.

Cost components Better than counter exchange, but requires opening a foreign currency account. Withdrawal fees (starting around 100 TWD equivalent) or interbank transfer fees (5-100 TWD) apply.

Pros and cons overview

• ✓ 24/7 operation, staged averaging, better exchange rates
• ✗ Need to open a foreign currency account, withdrawal fees apply
• Estimated cost (50,000 TWD): loss of 500–1,000 TWD
• Suitable for: experienced in forex, long-term holding, pairing with yen deposits

Additional opportunities After depositing into the foreign currency account, you can invest in yen deposits (annual interest 1.5-1.8%) or yen insurance policies (guaranteed interest 2-3%) to grow your funds.

Option 3: Online currency conversion + designated branch pickup

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After online transfer, bring ID and transaction notice to pick up cash in person.

Taiwan Bank’s “Easy Purchase” online currency exchange is fee-free (pay via TaiwanPay, only 10 TWD), with about 0.5% exchange rate advantage. You can reserve airport branches for pickup; Taoyuan Airport has 14 Taiwan Bank outlets (2 open 24 hours).

Pros and cons overview

• ✓ Favorable exchange rates, often no fees, airport pickup available, best pre-departure plan
• ✗ Need reservation (1-3 days), pickup limited to business hours, branch cannot be changed
• Estimated cost (50,000 TWD): loss of 300–800 TWD
• Suitable for: planned travelers, those wanting to pick up at the airport

Option 4: 24-hour foreign currency ATM withdrawal

Use chip-enabled bank card at foreign currency ATMs to withdraw yen cash. Supports 24/7 operation, cross-bank withdrawals (from TWD account, only 5 TWD cross-bank fee).

SinoPac Bank’s foreign currency ATM allows yen withdrawal from TWD account, with a daily limit of 150,000 TWD equivalent, no exchange fee.

Cost components Cross-bank fee as low as 5 TWD, but limited ATM locations (~200 nationwide), fixed denominations (1,000/5,000/10,000 yen), cash may run out during peak times.

Pros and cons overview

• ✓ Instant withdrawal, high flexibility, low cross-bank fee, no counter visit needed
• ✗ Limited locations, fixed denominations, possible out-of-stock at peak times
• Estimated cost (50,000 TWD): loss of 800–1,200 TWD
• Suitable for: no time to visit bank, urgent small amounts

Note Japan ATM withdrawal services will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus). It is recommended not to wait until the last minute; high-traffic locations like airports may run out of cash.

Quick comparison table: costs and scenarios

Beginner recommended combo: Budget 50,000–200,000 TWD, “online currency exchange + airport pickup” is the most cost-effective.

FAQs quick answers

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

Cash rate (Cash Rate) applies to physical cash, suitable for travel exchange. Usually 1-2% worse than spot rate, but immediate. Spot rate (Spot Rate) is the market rate for settlement within two business days, used for electronic transfers, more favorable but requires waiting.

Q. How much yen for 10,000 TWD?

Calculation: Yen amount = TWD amount × current rate. Using Taiwan Bank’s cash selling rate of 0.2060 on 2025/12/10, 10,000 TWD ≈ 48,500 yen. At spot rate ~4.87, it’s about 48,700 yen, difference of 200 yen (~40 TWD).

Q. What to bring for counter exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit; companies: business registration; online reservation: transaction notice. Under 20 need parent’s consent; over 100,000 TWD in large exchange requires source declaration.

Q. Limits for foreign currency ATM withdrawal?

Different banks have different limits (from October 2025, many banks adjusted):

• CTBC: equivalent of 120,000 TWD/day
• Taishin: equivalent of 150,000 TWD/day
• E.SUN: 50,000 TWD per transaction, 150,000 TWD per day

Cross-bank card: 20,000 TWD per withdrawal; recommend using your own bank card or spreading withdrawals to avoid fees.

After exchanging yen: value-added options

Don’t let your money sit idle after exchange. Based on risk appetite, yen can be allocated in various ways:

Conservative: Yen deposits E.SUN, Taiwan Bank foreign currency accounts start from 10,000 yen, with annual interest 1.5-1.8%, risk-free.

Mid-term income: Yen insurance policies Cathay, Fubon life savings insurance with guaranteed 2-3% interest, suitable for medium-term holding.

Growth: Yen ETFs Yuanta 00675U tracks yen index, allows fractional shares, management fee 0.4%, good for dollar-cost averaging.

Volatility: Forex trading Trade USD/JPY, EUR/JPY directly on forex platforms, with 24-hour trading, long/short positions, suitable for capturing volatility.

While yen is a safe haven, it also involves two-way fluctuations. Rate hikes are positive, but global arbitrage unwinding or geopolitical conflicts may suppress prices. Beginners should start with yen deposits, then move to ETFs or forex trading.

Summary: The golden rules of exchanging yen

Yen is no longer just for travel pocket money but also a safe-haven and small investment asset. With an 8.7% appreciation in 2025, it’s a good time to allocate.

Follow the two principles: “Stage-wise exchange” and “Don’t leave money idle after exchange” to minimize costs and maximize gains. Beginners should start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then shift to deposits, ETFs, or swing trading as needed.

This way, you not only enjoy more cost-effective trips abroad but also add a layer of protection in global market turbulence.