2025 Yen Exchange Complete Guide: 4 Methods to Save Up to 2000 Yen

December 10 Latest Exchange Rate: 1 TWD = 4.85 JPY, appreciating by 8.7% year-to-date

If you’re still exchanging yen at the bank counter with cash, you might already be at a disadvantage. According to the latest data, exchanging the same 50,000 TWD through different methods could result in a price difference of over 1,500 TWD—equivalent to a hearty Japanese meal.

This article quickly reveals the truth about yen exchange and helps you find the most suitable method.

Is it cost-effective to exchange yen now? One number tells you

Answer: Yes, but in installments.

TWD to JPY has risen from 4.46 at the start of the year to 4.85 now, with considerable appreciation potential. Especially as the TWD faces depreciation pressure, many investors and travelers are eyeing this opportunity.

But here’s a key point: the yen is currently in a volatile cycle. The Bank of Japan Governor Ueda Kazuo recently signaled a hawkish stance, with market expectations of a rate hike to 0.75% on December 19 (a 30-year high), and Japanese bond yields reaching a 17-year high of 1.93%. USD/JPY has fallen from the high of 160 to 154.58 now; short-term fluctuations may bring it to 155, but medium- to long-term forecasts suggest below 150.

In simple terms: exchanging now is okay, but don’t convert everything at once—installments are the way to go.

Two main reasons Taiwanese people exchange yen

Travel needs: Tokyo, Osaka, Hokkaido—many cash-based spending scenarios still exist across Japan (credit card penetration is only 60%), especially in drugstores, convenience stores, and restaurants that mostly accept cash. Buying Japanese products online or studying and working abroad also require cash yen.

Investment hedging: The yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). Japan’s stable economy and low debt mean funds tend to flow into yen during market turbulence. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, buffering a 10% stock market decline. For Taiwanese investors, exchanging yen can also hedge Taiwan stock market risks.

Additionally, Japan maintains ultra-low interest rates (only 0.5%), making the yen a “funding currency.” Many international investors use the yen-US dollar interest rate differential (currently about 4.0%) for arbitrage trading—this is also why the yen tends to be more volatile.

Four ways to exchange yen, with cost differences explained

Method 1: Bank counter cash exchange—most traditional but most expensive

Bring cash TWD directly to a bank branch or airport counter to buy yen cash. Simple operation, but using the “cash selling rate” (1-2% worse than spot rate), which incurs the highest cost.

Example: Based on Taiwan Bank’s rate on December 10, 2025, the cash selling rate is about 0.2060 TWD/JPY (1 TWD = 4.85 JPY). 50,000 TWD can buy about 242,718 JPY. But different banks vary:

Advantages: Safe, full denominations (1000/5000/10000 JPY), staff assistance available.
Disadvantages: Worst rates, limited business hours (9:00-15:30), possible fees.
Estimated cost: About 1,500-2,000 TWD loss on 50,000 TWD.
Suitable for: Urgent airport needs, elderly unfamiliar with online methods.

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

Use online banking app to convert TWD to yen and deposit into a foreign currency account, using the “spot sell rate” (about 1% better than cash selling rate). If cash is needed, withdraw at counter or foreign currency ATM, but extra fees apply (from about 100 TWD).

Example: After currency exchange via E.SUN app, withdrawing yen cash incurs a fee equal to the difference between spot and cash rates, minimum 100 TWD. Exchanging 50,000 TWD at a spot rate of about 4.87 yields roughly 243,059 JPY. With a 100 TWD withdrawal fee, actual cost is around 500-1,000 TWD.

Advantages: 24/7 operation, can buy in installments for average cost, better rates than counter exchange.
Disadvantages: Need to open a foreign currency account first, withdrawal fees (interbank 5-100 TWD).
Estimated cost: About 500-1,000 TWD loss on 50,000 TWD.
Suitable for: Those experienced with forex, using foreign currency accounts regularly, wanting to buy in installments at favorable rates.

Advanced use: The foreign currency account can also be used for yen fixed deposits (current annual interest ~1.5-1.8%) or investing in yen ETFs (e.g., Yuanta 00675U, annual management fee 0.4%).

Method 3: Online currency settlement + airport pickup—favorite among travelers

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website, then transfer funds. Upon arrival, bring ID and transaction notice to pick up cash. Taiwan Bank and Mega International Bank offer this service, with appointment options at airport branches.

Example: Taiwan Bank’s “Easy Purchase” online currency settlement is fee-free (pay with TaiwanPay, add only 10 TWD), with about 0.5% favorable exchange rate. Taoyuan Airport has 14 Taiwan Bank counters, 2 of which operate 24 hours. Pre-arranged online, pick up cash directly at the airport—saving time and money. 50,000 TWD can buy about 243,500 JPY, with only 300-800 TWD cost difference.

Advantages: Better rates, often no fees, airport pickup options, plan ahead.
Disadvantages: Need to book 1-3 days in advance, pickup during bank hours, no branch changes.
Estimated cost: About 300-800 TWD loss on 50,000 TWD.
Suitable for: Planned travelers who want to pick up cash at the airport.

Method 4: Foreign currency ATM withdrawal 24/7—most flexible

Use chip-enabled bank card at foreign currency ATMs to withdraw yen cash, available 24/7, supports interbank transactions (only 5 TWD fee from TWD account). Major currencies supported, about 200 ATMs nationwide.

Example: E.SUN Bank’s foreign currency ATM allows withdrawal from TWD account, with a daily limit of 150,000 TWD, no currency exchange fee. Interbank withdrawal costs only 5 TWD. Cost similar to Method 3, around 800-1,200 TWD loss.

Note: Japan’s ATM withdrawal services will be adjusted by end of 2025, requiring international cards (Mastercard/Cirrus). Taiwan’s foreign currency ATMs may run out of cash during peak times (airports, shopping districts). Don’t wait until the last minute.

Advantages: Instant withdrawal, high flexibility, low interbank fee (only 5 TWD).
Disadvantages: Limited locations (~200 nationwide), fixed denominations (1000/5000/10000 JPY), possible shortages during peak hours.
Estimated cost: About 800-1,200 TWD loss on 50,000 TWD.
Suitable for: Those with no time to visit banks, needing emergency cash.

Quick comparison table: Which method suits you best?

Core advice: For budgets between 50,000-200,000 TWD, the most cost-effective approach is a combination of “Online exchange (Taiwan Bank) + airport pickup” or “Foreign currency ATM.” Use airport online exchange for emergency cash, and withdraw remaining funds via ATM in installments—reducing risk and optimizing rates.

2025 new limits for bank foreign currency ATM withdrawals

Banks have adjusted withdrawal limits to prevent fraud. Remember to diversify withdrawals during peak times:

Reminder: After 2025, most banks will lower daily limits to 100,000-150,000 TWD. Use your own bank card to avoid cross-bank fees or split withdrawals over multiple days.

After exchanging yen, don’t let it sit idle—4 ways to add value

Once you have yen cash, the next step is to make it “work.” Here are four options for different risk preferences:

1. Yen fixed deposit: conservative
Open a foreign currency account, deposit yen online. Minimum 10,000 yen, annual interest 1.5-1.8%. Break-even within 3 months, suitable for short-term travel or capital preservation.

2. Yen insurance policy: medium-term
Cathay and Fubon offer yen savings insurance with guaranteed interest rates of 2-3%, maturity in 3-5 years. Suitable for conservative investors wanting to lock in exchange rates and interest.

3. Yen ETF: growth-oriented
For example, Yuanta 00675U tracks the yen index, can be bought as fractional shares via brokerage apps, suitable for dollar-cost averaging. Annual management fee 0.4%, long-term helps diversify yen exchange risk.

4. Forex swing trading: advanced
Trade USD/JPY or EUR/JPY directly on forex platforms, capturing short-term fluctuations. Pros: long and short positions, 24-hour trading, small capital needed. Cons: highest risk.

Quick FAQ

Q. What’s the difference between cash rate and spot rate?
Cash rate is the bank’s buy/sell rate for physical bills and coins, with a 1-2% spread. Spot rate is the foreign exchange market rate for settlement within 2 business days (T+2), used for electronic transfers, more favorable but requires waiting.

Q. How much yen can I get for 10,000 TWD?
Based on December 10, 2025, cash sell rate of 4.85, 10,000 TWD ≈ 48,500 JPY. Using spot rate 4.87, ≈ 48,700 JPY. Difference about 200 JPY (~40 TWD).

Q. What do I need to bring for counter exchange?
Taiwanese: ID + passport. Foreigners: passport + residence permit. If pre-booked online, also bring transaction notice. Under 20 need parent’s consent. Large amounts (>100,000 TWD) may require source of funds declaration.

Q. Which is better to exchange: yen, HKD, or USD?
Yen is a safe-haven currency, stable but with moderate appreciation (8.7% annually). HKD is linked to RMB, affected by Hong Kong stocks and property policies. USD has the highest interest rate (>4.5%) but may depreciate if US economy slows. Allocate based on purpose: yen for travel and hedging, USD for long-term, HKD for short-term arbitrage.

Summary: 3 core principles for exchanging yen

1. Exchange in installments, don’t convert all at once
Yen fluctuates widely; 3-4 installments can reduce risk and lower average cost.

2. Choose the right method, save a big meal
Same 50,000 TWD, counter exchange costs about 1,200 TWD more than online settlement. Exchanging 1 million TWD saves about 24,000 TWD—enough for a trip to Japan.

3. After exchange, don’t let it sit idle—invest or ETF
Yen fixed deposits yield 1.5-1.8%, recoup costs within 3 months. Or invest in yen ETFs for long-term appreciation.

Whether planning a trip to Japan next year or hedging against TWD depreciation, mastering these methods can minimize costs and maximize returns. Beginners should start with “Taiwan Bank online exchange + airport pickup” and then progress to fixed deposits, ETFs, or forex trading as needed.