How to save the most money when exchanging TWD to JPY? An article analyzing 4 major channels and practical options

Today in December 2025, the Taiwan dollar has appreciated to a critical level of 4.85 against the Japanese yen. Compared to 4.46 at the beginning of the year, the yen has already gained 8.7%. This market trend has attracted many to seriously consider currency exchange or investing in yen. But the question is: how to exchange without losing a chunk of your money to exchange rate spreads and fees?

Why is exchanging yen now a hot topic?

The yen is not just pocket money for travel; it is also one of the world’s three major safe-haven currencies. From the daily needs of Taiwanese people—shopping in Japan, purchasing via proxy, studying abroad—to asset allocation strategies for hedging Taiwan stock market volatility, the yen plays an important role.

Especially under the pressure of the Taiwan dollar’s depreciation, many investors are starting to allocate part of their funds into yen, hoping to benefit from currency appreciation and low-interest arbitrage. Data shows that Taiwan’s foreign exchange demand in the second half of the year increased by 25% compared to the first half, driven mainly by the recovery of tourism and hedging needs.

Moreover, the Bank of Japan is about to raise interest rates. Governor Ueda Kazuo’s recent hawkish comments have already pushed market expectations to 80%, with a rate hike of 0.25 basis points to 0.75% expected at the December 19 meeting (a 30-year high). Japanese bond yields have also hit a 17-year high of 1.93%. These factors support the medium-term strength of the yen.

Breakdown of four major online and on-site currency exchange options

Rather than aimlessly visiting banks, it’s better to understand the cost structure of various exchange channels. Using NT$50,000 as a basis, the loss ranges from NT$1,500 to NT$300.

Option 1: Traditional cash counter exchange — most expensive but most reliable

Bring cash NT$ and exchange for yen at a bank or airport counter. This is the most traditional method and also the worst in terms of exchange rate. Banks apply the “cash selling rate,” usually 1-2% worse than the spot rate.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, was about 0.2060 NT$/yen (implying 1 NT$ = 4.85 yen). Some banks also charge fixed fees, such as E.SUN, E.SUN Bank, Cathay United Bank, charging NT$100-200.

Using this method, NT$50,000 would lose about NT$1,500-2,000. Pros: safe, transparent, full denominations, staff assistance. Cons: high cost, limited by business hours. Suitable for those unfamiliar with online operations or needing small emergency cash.

Option 2: Online currency exchange + airport pickup — a must before traveling

This is the most popular combo in recent years. Fill in currency, amount, pickup branch, and date on the bank’s website. After completing online exchange, go to the airport branch with ID and transaction notice to pick up cash.

Taiwan Bank’s “Easy Purchase” online exchange service almost has no fee (using Taiwan Pay costs NT$10), and offers about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank outlets, including 2 open 24 hours, very convenient.

For NT$50,000, this option costs only NT$300-800 in losses, the lowest among the four options. Advantages: favorable rates, often fee-waived, and airport pickup option. Disadvantages: requires advance reservation (usually 1-3 days), and pickup times are limited by bank hours. Best for planned travelers who want to pick up cash directly at the airport.

Option 3: Online exchange + foreign currency account — for experienced investors

Use online banking or app to convert NT$ into yen and deposit into a foreign currency account (using the “spot sell rate”). Then, withdraw cash via foreign ATM or counter as needed. The advantage is observing exchange rate trends and buying in batches at low points to average costs.

For example, E.SUN Bank’s app-based exchange incurs a spread fee (difference between cash and spot rate), starting at NT$100. Cross-bank withdrawals cost an additional NT$5-100.

With NT$50,000, losses are about NT$500-1,000. Benefits: 24/7 operation, ability to buy in parts, better rates than counters. Drawbacks: need to open a foreign currency account first, extra fees for cash withdrawal. Suitable for those with forex investment experience, who often use foreign currency accounts, or even transfer yen into fixed deposits (current annual interest ~1.6%) to earn interest.

Option 4: 24-hour foreign currency ATM — emergency savior

Use a chip-enabled bank card at a foreign currency ATM to withdraw yen cash, no restriction by bank hours. Deduct NT$5 cross-bank fee from your NT$ account. Some banks like E.SUN offer zero currency exchange fee at their ATMs, with a daily withdrawal limit of NT$150,000.

With NT$50,000, this costs about NT$800-1,200 in losses. Advantages: instant, 24/7, flexible, low cross-bank fees. Disadvantages: only about 200 ATMs nationwide, cash may run out during peak times (like airports), denominations are fixed at 1,000/5,000/10,000 yen. Best for those who lack time to visit banks or need quick emergency cash.

How to minimize costs in the online exchange era?

Based on the above, if your budget is NT$50,000–NT$200,000, the most cost-effective combo is “online exchange + airport pickup” or “online exchange + foreign ATM”. The former suits travelers, the latter suits investors wanting to observe rates and buy in parts.

The core idea is simple: lock in favorable exchange rates online to control costs, then pick the most convenient way to get cash, minimizing bank spread costs.

Is now really a good time to exchange? Staggered entry is key

The NT$ against yen has appreciated 8.7% from 4.46 at the start of the year to 4.85 now. That’s a significant gain for Taiwanese investors. But what’s next for the yen?

In the short term, USD/JPY has fallen from a high of 160 to around 154.58. Expectations of BOJ rate hikes remain strong, and the US is entering a rate cut cycle, which supports the yen. However, considering global arbitrage unwinding risks, short-term fluctuations of 2-5% are possible. Geopolitical tensions (like Taiwan Strait or Middle East) could also suddenly weaken the yen.

Therefore, exchanging yen now is indeed advantageous, but don’t do it all at once. Stagger your entries, and add positions when the rate dips (e.g., when NT$ to yen drops below 4.80) to better control risk and lower average costs.

After exchanging yen, don’t let your money sit idle

If you just convert to yen and leave it sitting, you’re missing out on potential gains. Here are four common advanced options, especially suitable for small-scale beginners:

1. Yen fixed deposit — Open a foreign currency account with E.SUN or Taiwan Bank, deposit yen online, minimum NT$10,000 equivalent, annual interest rate about 1.5-1.8%. Stable, conservative, good for those avoiding investments.

2. Yen insurance savings — Cathay or Fubon life’s foreign currency savings insurance, with guaranteed 2-3% interest, medium-term holding, plus insurance coverage.

3. Yen ETFs (like 00675U, 00703) — Yuanta’s 00675U tracks the yen index, can be bought as fractional shares via broker apps, suitable for dollar-cost averaging and growth. Management fee only 0.4%, low cost.

4. Forex trading — Trade USD/JPY or EUR/JPY directly on forex platforms, with long/short options, 24-hour trading, small capital can do swing trading. Suitable for experienced traders.

While yen is a safe-haven asset, it also fluctuates bidirectionally. For investment purposes, yen ETFs are a good way to diversify risk. For intraday or swing trading, forex platforms can help capture opportunities amid volatility.

Quick FAQ

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

Cash rate is the bank’s buy/sell rate for physical banknotes, settled immediately, convenient but usually 1-2% worse than the international market. Spot rate is the forex market’s T+2 settlement rate, closer to international prices and more favorable, but involves waiting. Simply put, spot rate is cheaper, cash rate is more expensive.

How much yen can NT$10,000 buy?

Using the formula “Yen amount = NT$ amount × current rate.” At Taiwan Bank’s cash selling rate of 4.85, NT$10,000 ≈ 48,500 yen. At spot rate 4.87, about 48,700 yen. Difference of about 200 yen (~NT$40).

What to bring for on-site exchange?

Locals: ID + passport; foreigners: passport + residence permit. If booked online, bring transaction notice. Under 20 years old need parent’s consent and ID; large amounts over NT$100,000 may require source declaration.

Are there limits on foreign currency ATM withdrawals?

Yes. After October 2025, many banks have strengthened anti-fraud measures, with daily limits around NT$100,000 for third-party digital accounts. CTBC Bank’s card limit is NT$120,000 equivalent per day, Taishin Bank NT$150,000, E.SUN Bank NT$150,000 (including credit card). Use your own bank card to avoid cross-bank fees, and withdraw early during peak times to prevent cash shortages.

The ultimate logic of currency exchange

The yen is no longer just a travel currency but also an asset with hedging and investment value. Whether for travel or asset allocation, the key is to “exchange gradually and avoid sitting on cash.”

For beginners, the simplest start is “Taiwan Bank online exchange + airport pickup” or directly using “foreign currency ATM”—lowest cost, simplest process. After exchanging, choose to earn interest via fixed deposits, diversify risk with ETFs, or try small forex swings. This way, you add a layer of protection during global market fluctuations and make your travel more cost-effective.