Japanese Yen Exchange Guide: Master 5 Tips to Seize the Best Currency Exchange Opportunities

In mid-December 2025, the TWD to JPY exchange rate has risen to 4.85, with the Japanese travel boom and yen investment demand heating up simultaneously. For the public looking to exchange for yen, now is a critical moment. But how can you exchange money cost-effectively? We provide a detailed breakdown of the current mainstream currency exchange channels in Taiwan, so you can grasp all the key points of yen exchange in one go.

Why is the yen worth your attention?

When it comes to foreign currency exchange, the yen is always among the top few, but the reasons behind this are far more than just Japan travel.

Travel and daily consumption

Most stores in Japan still rely on cash transactions (credit card penetration is only about 60%), whether shopping in Tokyo, skiing in Hokkaido, or vacationing in Okinawa, preparing sufficient cash is essential. Additionally, purchasing agents, Japanese online shopping, and even studying or working in Japan require holding yen directly for payments.

Financial investment perspective

The international financial markets list the yen as one of the three major safe-haven currencies (the other two are USD and Swiss Franc), due to Japan’s stable economy and relatively low debt. Whenever global markets are turbulent, funds tend to flow into the yen for protection. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% within a week, while stock markets fell over 10%, demonstrating excellent safe-haven effects.

For Taiwanese investors, converting into yen not only offers potential exchange gains but also hedges against the downside risk of Taiwan stocks. Meanwhile, Japan’s long-standing ultra-low interest rate policy (currently about 0.5%) makes the yen a “low-interest financing currency.” Many professional investors borrow low-interest yen to invest in higher-yield USD (the USD/JPY interest rate differential can reach over 4.0%), then close positions when risks increase.

In-depth analysis of four major exchange channels

Many think that exchanging yen only involves banks or airports, but in reality, even the exchange rate differences can cost you thousands of NT dollars. Here are the four most mainstream methods:

Option 1: Bank/Airport Counter Cash Exchange

This is the most traditional and straightforward method. Carry NT cash directly to a bank branch or airport counter, complete the exchange on the spot, and receive yen cash.

Cost structure: This method uses the “cash selling rate,” which is usually 1-2% worse than the international spot rate. For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 TWD/JPY (roughly 4.85 JPY per TWD). Some banks also charge an additional NT$100-200 handling fee.

Advantages: Safe and reliable, multiple denominations (1,000, 5,000, 10,000 yen bills), staffed service available.

Disadvantages: Less favorable exchange rates, limited operating hours (weekday 9:00-15:30), additional handling fees increase costs.

Suitable for: Emergency cash needs, last-minute top-up before travel, or those uncomfortable with online transactions.

Option 2: Online Banking Conversion + ATM Cash Withdrawal

Use the bank’s official app or website to convert TWD to yen and deposit into a foreign currency account, then withdraw cash via a foreign currency ATM with a debit card.

Cost structure: Uses the “spot selling rate,” which is about 1% better than cash rates. For cash withdrawal, additional ATM withdrawal fees apply (interbank NT$5-100).

For example, E.SUN Bank customers can transfer online to a foreign currency account, then withdraw at an ATM with their bank card. Daily limit is NT$150,000 equivalent, with a cross-bank fee of NT$5.

Advantages: 24/7 operation, allows batch conversions to average out costs, better rates than counter exchange.

Disadvantages: Need to pre-open a foreign currency account (most banks free), cash denominations limited (usually 1,000, 5,000, 10,000 yen).

Suitable for: Experienced forex traders, long-term yen holders, or those planning to deposit yen into fixed deposits or other investment tools.

Option 3: Online Conversion + Designated Branch Pickup

Designed for travelers. Fill in the amount to exchange, select pickup branch and date on the bank’s website. Then, bring ID and transaction notification to the designated branch to pick up cash.

Taiwan Bank’s “Easy Purchase” online exchange service features almost no handling fee (pay via Taiwan Pay, only NT$10), with about 0.5% favorable rate margin. Taoyuan Airport has 14 Taiwan Bank branches, 2 of which operate 24 hours, allowing last-minute exchanges before departure.

Advantages: Largest rate advantage, minimal or no handling fee, pre-booking possible for airport pickup.

Disadvantages: Requires 1-3 days’ notice (not instant), pickup only during bank hours, reservation changes not allowed once booked.

Suitable for: Well-planned travelers, those wanting to pick up cash at the airport to avoid lugging luggage.

Option 4: Foreign Currency ATM Instant Withdrawal

Use a chip-enabled debit card at foreign currency ATMs to withdraw yen 24/7. Cross-bank withdrawal fee is only NT$5.

E.SUN Bank’s foreign currency ATMs for yen have no extra exchange fee, with a daily limit of NT$150,000 equivalent. Although there are about 200 ATMs nationwide, they are mainly in major cities and shopping districts.

Advantages: Instant access anytime, high flexibility, very low cross-bank fee, no need for advance planning.

Disadvantages: Limited ATM locations, fixed denominations, cash may run out during peak times (holidays, busy airports).

Suitable for: Urgent needs, last-minute travelers, busy professionals frequently requiring foreign currency.

Cost comparison of the four options

Based on exchanging NT$50,000, estimated costs for each method:

Note: Costs include exchange rate differences and fees; actual figures vary by bank and timing.

Forex FAQ

What is cash rate and spot rate?

Cash rate refers to the bank’s buy/sell rate for physical bills and coins, usually 1-2% worse than the market rate, but allows immediate cash access. Spot rate is the foreign exchange market’s rate for settlement within two business days (T+2), mainly used for electronic transfers and cashless settlement, closer to international market prices.

How much yen can I get with NT$10,000?

Based on Taiwan Bank’s rate on December 10, 2025, at 4.85, NT$10,000 × 4.85 = 48,500 yen. Using the spot rate (about 4.87), it’s approximately 48,700 yen, a difference of about 200 yen (roughly NT$40).

What do I need to bring for counter exchange?

Citizens: ID card and passport; foreigners: passport and residence permit; companies: business registration. For online pre-booking, bring transaction notification. Under 20 years old need parental accompaniment. Large exchanges over NT$100,000 require source declaration.

Is now a good time to exchange yen?

Exchange rate trend analysis

In early 2025, TWD/JPY was 4.46, rising to 4.85 by mid-December, an appreciation of 8.7% for the year. Amid ongoing TWD depreciation pressure, this appreciation is significant for investors.

Data shows that in the second half of the year, Taiwan’s foreign currency exchange demand grew by 25%, driven mainly by travel recovery and safe-haven capital inflows.

Bank of Japan policy outlook

BOJ Governor Ueda Kazuo recently signaled a hawkish stance, with market expectations of an 80% chance of rate hikes. The BOJ is expected to raise the benchmark rate from 0.5% to 0.75% at the December 19 meeting, reaching a 30-year high. The 10-year Japanese government bond yield has risen to 1.93%, a 17-year high.

USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now. Short-term fluctuations to around 155 are possible, but medium to long-term forecasts suggest further decline below 150.

Investment advice

For investment-oriented currency exchange, yen as a safe-haven currency is suitable for hedging Taiwan stock risks. However, short-term arbitrage unwinding may cause 2-5% volatility. It’s recommended to adopt a phased approach rather than one-time full exchange, to average costs and avoid short-term risks.

Post-exchange financial allocation

After acquiring yen, options to grow your funds include:

Yen fixed deposit: The most stable option, offered by banks like E.SUN and Taiwan Bank, with minimum NT$10,000 deposit, current annual interest rate around 1.5-1.8%.

Yen insurance policies: Mid-term growth, such as Cathay or Fubon savings insurance in yen, with guaranteed interest rates of 2-3%.

Yen-related ETFs: Growth-oriented, such as Yuanta 00675U (annual management fee 0.4%) tracking yen indices, available for fractional purchase via brokerage apps, suitable for regular investment.

Forex trading: Advanced traders can consider direct trading of USD/JPY or EUR/JPY currency pairs, capturing exchange rate movements. Benefits include two-way trading, 24-hour market, and low capital requirements.

Final reminders

While the yen has safe-haven value, it remains a two-way volatile asset. BOJ rate hikes support the fundamental, but global arbitrage unwinding or geopolitical risks (e.g., Taiwan Strait tensions) may still pressure the exchange rate.

For beginners, start with the simplest options like “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transfer yen into fixed deposits, ETFs, or other growth channels as needed. Master the core principles of “phased exchange + not leaving funds idle after conversion” to enjoy both exchange gains and reduce short-term volatility risks.