NT$4.85 to JPY, is it a good time to enter now? An article analyzing the most cost-effective exchange methods

By the end of 2025, a yen appreciation wave is coming. The TWD/JPY exchange rate has surged to 4.85, an increase of over 8% compared to 4.46 at the beginning of the year. For many Taiwanese planning to travel abroad or allocate assets, is now the right time to exchange for yen? We use the latest data to help you sort it out, including 4 exchange channels, cost comparisons, and how to make your money work for you after the exchange.

Now is a good time to exchange yen; returns are already attractive

Looking at the full year of 2025, yen appreciation is an established fact. While the US has entered a rate-cutting cycle, the Bank of Japan is raising rates in the opposite direction—recent hawkish signals from Governor Ueda, with market expectations of an 80% chance of rate hikes, and a meeting on December 19 expected to raise the rate to 0.75% (a 30-year high). Japanese government bond yields also hit a 17-year high at 1.93%.

What does this mean? The yen, as one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), is being re-priced. During market turbulence, funds flow into yen for safety. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a single week, successfully buffering a 10% decline in the stock market. For Taiwanese investors, holding yen isn’t just for travel expenses; it also helps hedge against Taiwan stock market volatility.

Is it worthwhile to exchange for yen now? Yes, but the smartest approach is to do it in batches. The USD/JPY rate has fallen from a high of 160 at the start of the year to 154.58 now. It may rebound to 155 in the short term, but medium to long-term forecasts suggest it will stay below 150. In other words, the yen’s appreciation cycle still has room to run.

4 exchange methods with vastly different costs

Calculating with 50,000 TWD, the cost differences among various exchange methods are astonishing—almost a 1,000 TWD difference between the cheapest and most expensive options.

Method 1: Bank counter cash exchange

This is the most traditional and straightforward method. Bring cash TWD directly to a bank or airport counter to exchange for yen notes. Simple operation, assisted by staff, with denominations available (1,000, 5,000, 10,000 yen).

But what’s the cost? Banks use the cash selling rate, which is 1-2% worse than the spot rate. For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 TWD/JPY (1 TWD = 4.85 JPY), resulting in a loss of about 1,500-2,000 TWD. Some banks also charge handling fees (E.SUN and E.SUN each 100 TWD; Cathay United Bank 200 TWD), increasing costs further.

Suitable for: Those uncomfortable with online operations, needing small amounts temporarily, or rushing at the airport.

Method 2: Online currency exchange, pick-up at designated branch or airport

No need to open a foreign currency account beforehand. Just fill in currency, amount, pick-up branch, and date on the bank’s website. After remittance, bring ID and transaction notice to pick up cash at the counter. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay with Taiwan Pay, only 10 TWD), with about 0.5% better rate, making the loss around 300-800 TWD.

What’s the key advantage? Pre-booking for airport branch pickup. Taoyuan Airport has 14 Taiwan Bank outlets, including 2 open 24 hours. Reserve 1-3 days before departure, then pick up cash directly at the airport, saving queue time and avoiding limited operating hours.

Suitable for: Planning travelers, those who can book in advance, or last-minute cash pick-up before departure.

Method 3: Online exchange, withdrawal to foreign currency account

Using bank app or online banking, convert TWD to JPY at the spot selling rate and deposit into a foreign currency account. The rate is about 1% better than cash exchange, allowing for batch purchases at an average cost. To withdraw cash, additional exchange spread fees apply (minimum 100 TWD).

Institutions like E.SUN Bank allow opening foreign currency accounts without limit, with easy online deposits. You can open a JPY fixed deposit with as little as 10,000 yen (annual interest 1.5-1.8%). After exchanging yen, deposit into the fixed deposit, and your money starts earning interest. Cost is roughly 500-1,000 TWD.

Suitable for: Those experienced with forex, using foreign currency accounts regularly, or investors planning to buy fixed deposits or ETFs after exchanging yen.

Method 4: 24-hour foreign currency ATMs, most flexible but fewer locations

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen cash. Supports 24-hour operation, with only 5 TWD cross-bank fee deducted from TWD account (completely free if using the same bank card). E.SUN Bank’s foreign currency ATM allows daily withdrawal limits of 150,000 TWD, with no currency exchange fee.

But the obvious downside: Only about 200 foreign currency ATMs nationwide, limited in number. Denominations are fixed at 1,000, 5,000, 10,000 yen. During busy periods (like holidays at airports), cash may run out. By the end of 2025, Japan ATM withdrawal services will require international cards (Mastercard/Cirrus). Cost is about 800-1,200 TWD.

Suitable for: Urgent cash needs, no time to visit banks, or requiring flexible withdrawals.

Cost comparison table for the 4 methods

How much does it cost to exchange 4200 yen with each method?

Let’s look at specific amounts. Suppose you only want to exchange 4200 yen (about 865 TWD). Which method is most cost-effective?

• Counter cash exchange: 4200 × 0.2060 ≈ 865 TWD, plus handling fee of 30-50 TWD, total 895-915 TWD.
• Online exchange: 4200 × approx 0.207 (spot rate) ≈ 870 TWD, plus minimal handling fee (~5 TWD), total about 875 TWD.
• Online exchange: same as above, about 870 TWD.
• Foreign currency ATM: no extra fee if withdrawing from TWD account, about 870 TWD.

Conclusion: For amounts less than 10,000 yen, online exchange or ATM withdrawal is most economical.

Holding yen idle? 4 ways to increase value

After exchanging yen, letting the money sit idle is a waste. Based on your risk appetite, here are 4 options:

1. Yen fixed deposit—most stable

Open a foreign currency deposit account at E.SUN or Taiwan Bank, deposit yen online. Minimum 10,000 yen, annual interest rate 1.5-1.8% (quite good in current environment). With the Bank of Japan’s continued rate hike expectations, future rates may rise further. Lowest risk, suitable for conservative investors.

2. Yen insurance policy—medium-term locked-in returns

Buy yen savings insurance from Cathay or Fubon Life, with guaranteed interest rates of 2-3%, for 3-5 years. Better than fixed deposits, but less liquidity. Suitable for those with spare funds not urgently needed.

3. Yen ETFs—growth potential

ETFs tracking the yen index like Yuanta 00675U or Fubon 00703 can be bought as fractional shares via broker apps. Management fee around 0.4%, suitable for dollar-cost averaging. With yen appreciation potential and a bullish outlook on Japanese stocks, growth prospects are stronger than fixed deposits.

4. Forex swing trading—high return, high risk

Trade yen currency pairs like USD/JPY or EUR/JPY directly on forex platforms. Advantages include two-way trading, 24-hour operation, and small capital requirements. Risks involve yen’s volatility—while rate hikes are positive, global arbitrage unwinding or geopolitical conflicts could suppress prices. Using swing strategies, 2-5% fluctuations are common; be prepared with stop-loss and take-profit orders.

Quick FAQs

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

Cash rate is the rate banks offer for physical cash (notes and coins), suitable for travel exchange, convenient for immediate use, but 1-2% worse than the spot rate.

Spot rate is the foreign exchange market rate for settlement within two business days, used for electronic transfers and non-cash settlement. It’s more favorable, close to international market prices, but requires T+2 settlement.

Q. What documents are needed for counter exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. Company exchange: business registration. For online booking, bring transaction notice. Under 20: accompanied by parent and signed consent. Large amounts over 100,000 TWD may require source of funds declaration.

Q. Are there withdrawal limits for foreign currency ATMs?

From October 2025, new regulations tighten anti-fraud measures, with limits such as:

• 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

It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees (5 TWD per transaction).

Q. Are there limits for RMB ATM withdrawals?

Yes, each bank has a 20,000 RMB per transaction limit, with daily limits depending on the issuing bank.

Conclusion

Yen is no longer just “pocket money” for travel; it’s a multi-purpose asset with hedging, appreciation, and fixed income potential. The current exchange rate level at the end of 2025 is indeed worth strategic planning.

Two key principles: First, exchange in batches to average costs; second, don’t just sit on the yen—immediately move into fixed deposits, ETFs, or swing trading to maximize returns.

Beginners can start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then gradually move into yen fixed deposits, ETFs, or forex trading as needed. This way, you can enjoy cost-effective travel and add a layer of protection during global market turbulence. Start planning now—don’t let the weakening TWD go to waste.