Is it a good time to exchange TWD for JPY now? Understand the four major exchange channels in five minutes

As of December 10, 2025, the exchange rate reached 4.85 (TWD to JPY), what does this mean? Compared to the 4.46 at the beginning of the year, the Japanese Yen has appreciated by about 8.7%. For those wanting to exchange foreign currency, is now the time to act or should they wait? We’ve compiled all the details on exchanging JPY so you can understand everything at once.

Why Now Is a Good Time to Seriously Consider Exchanging JPY

The Japanese Yen is not just “pocket money” for travel; it also plays a key role in financial investment.

Safe-Haven Asset Role: The JPY, along with USD and CHF, is one of the world’s three major safe-haven currencies. During market turbulence, funds flow into the Yen to protect assets. For example, during the Russia-Ukraine conflict in 2022, the Yen appreciated by 8% in one week, while the stock market fell by 10%—this demonstrates the power of hedging. For Taiwanese investors, holding JPY can effectively buffer against fluctuations in the Taiwan stock market.

Interest Rate Hike Expectations Driving Exchange Rates: The Governor of the Bank of Japan, Ueda Kazuo, recently signaled a hawkish stance. The market has priced in an 80% chance of a rate hike on December 19, with an expected increase of 0.25 to 0.75 bps (a 30-year high). Japanese government bond yields have risen to 1.93% (a 17-year high). These positive factors are pushing up the Yen. However, short-term arbitrage closing positions could cause 2-5% volatility, so gradual entry is necessary.

Increased Foreign Exchange Demand in the Second Half of the Year: Observations show that Taiwan’s foreign exchange demand increased by 25% in the first half of the year, mainly driven by travel recovery and safe-haven allocations, indicating growing market recognition of the Yen.

Four Major Ways to Exchange Foreign Currency—Which One Is Best for You?

1. Bank Counter Cash Exchange—Most Traditional, Highest Cost

Bring TWD cash directly to a bank or airport counter to exchange for JPY cash. It’s safe, reliable, and denominations are complete (1,000, 5,000, 10,000 Yen), but this method uses the “cash selling rate,” which is 1-2% worse than the international spot rate.

As of December 10, 2025, different banks’ cash selling rates range from 0.2058 to 0.2069 TWD/JPY. Taiwan Bank offers 0.2060 (no fee), but E.SUN Bank charges 0.2067 plus a 100 TWD handling fee. Exchanging 50,000 TWD could result in a loss of 1,500-2,000 TWD just from the exchange margin.

Suitable for: People unfamiliar with online operations, or urgent small amounts needed at the airport.

2. Online Exchange + Counter Withdrawal—Better Rates, but Withdrawal Fees Apply

Use a bank’s app or online banking to convert TWD to JPY at the “spot sell rate” (about 1% better than cash rate), then deposit into a foreign currency account. If cash is needed, go to a counter or foreign currency ATM to withdraw, but additional fees (usually starting at 100 TWD) apply.

Advantages include 24-hour operation and the ability to buy in batches for an average cost. Disadvantages are the need to open a foreign currency account and possible cross-bank withdrawal fees of 5-100 TWD. Exchanging 50,000 TWD might incur a loss of 500-1,000 TWD.

Suitable for: Those experienced with forex, wanting to buy in installments; or investors planning to transfer JPY into fixed deposits (currently 1.5-1.8% annual interest).

3. Online Currency Settlement + Airport Pickup—The Smartest Reservation Plan

This is the new favorite before traveling abroad. No foreign currency account needed. Simply fill in the amount, currency, preferred branch, and date on the bank’s website. After completing, bring your ID and transaction notification to the designated location to pick up cash. Taiwan Bank’s “Easy Purchase” online settlement even waives handling fees (using Taiwan Pay costs only 10 TWD), with an exchange rate discount of 0.5%.

Best of all, Taoyuan Airport has 14 Taiwan Bank outlets, including 2 open 24 hours, perfectly matching flight schedules. Reservations take 1-3 days; branches cannot be changed afterward, but the savings (300-800 TWD) are well worth it.

Suitable for: Planned travelers who want to pick up cash directly at the airport.

4. Foreign Currency ATM Withdrawal—24/7 Emergency, but Lucky

Use a chip-enabled debit card at a foreign currency ATM to withdraw JPY cash. The cross-bank fee per transaction is only 5 TWD. E.SUN Bank’s foreign currency ATMs support direct withdrawal from TWD accounts, with a daily limit of 150,000 TWD and no currency exchange fee. Looks very cost-effective, but the drawbacks are limited locations (about 200 nationwide), fixed denominations (1,000/5,000/10,000 Yen), and cash shortages during peak times (especially at airports).

Note: Japan’s ATM withdrawal services will be adjusted by the end of 2025 to support only international cards (Mastercard/Cirrus).

Suitable for: Readers with no time to visit banks or needing urgent cash.

Cost Comparison of Four Ways to Exchange 50,000 TWD for JPY

Our recommendation: For budgets of 50,000-200,000 TWD, the most cost-effective approach is “Online settlement + airport pickup” or “Online exchange + foreign currency ATM,” minimizing costs.

Risks and Opportunities of Entering Now

While the Yen is a safe-haven asset, it doesn’t only go up. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58, with a short-term rebound to 155 possible, but the medium to long-term forecast suggests below 150—meaning room for adjustment.

The global interest rate cut cycle has started, and the US-Japan interest rate differential (currently 4.0%) may narrow, prompting arbitrage traders to close positions by buying back Yen to lock in profits, which could push the rate down. Additionally, geopolitical risks (Taiwan Strait, Middle East) could cause sudden volatility.

Core advice: Don’t exchange all at once; instead, buy in installments each month. This spreads risk and allows you to capture better exchange rates over time.

After Exchanging Yen, Don’t Let Your Money Sit Idle

Once you have Yen, the next step is crucial—don’t let it sit idle without earning interest.

Yen Fixed Deposits: The most stable option. Open a foreign currency account at E.SUN or Taiwan Bank with a minimum of 10,000 Yen, offering annual interest rates of 1.5-1.8%.

Yen Insurance Policies: Hold medium-term. Cathay Life or Fubon Life offer savings insurance with guaranteed interest rates of 2-3%, providing both growth and protection.

Yen ETFs: Growth-oriented. Yuanta 00675U tracks the Yen index, with an annual management fee of 0.4%, and can be purchased in fractional shares for diversification.

Forex Trading: Trade USD/JPY or EUR/JPY directly on forex platforms, leveraging 24-hour price fluctuations for swing trading. Advantages include two-way trading, small capital requirements, and comprehensive tools (stop-loss, take-profit, trailing stops, real-time signals).

Choose based on your risk tolerance and time commitment. While BOJ rate hikes favor Yen, global rate cuts or geopolitical tensions could have the opposite effect, so diversification is the safest approach.

Top 10 Frequently Asked Questions

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

Cash exchange rate is the rate banks offer for physical cash transactions, suitable for travel. It’s advantageous for immediate cash but 1-2% worse than the spot rate. The spot rate is the international market price settled T+2, used for electronic transfers, import/export, or foreign currency accounts, and is closer to the global market.

Q: How much Yen can I get with 10,000 TWD?

Using Taiwan Bank’s December 10 cash sell rate of 4.85, 10,000 TWD can buy about 48,500 Yen. At the spot sell rate of 4.87, it’s about 48,700 Yen—a difference of roughly 200 Yen (about 40 TWD).

Q: What do I need to bring for counter exchange?

Taiwanese citizens: ID card and passport; foreigners: passport and residence permit. If pre-booked online, also bring transaction notification. Under 20 years old: parent’s consent and signature; over 100,000 TWD may require source of funds declaration.

Q: What’s the limit for foreign currency ATM withdrawals?

From late 2025, regulations vary by bank. Taishin Bank’s card supports up to 150,000 TWD per day; CTBC supports up to 120,000 TWD. It’s recommended to split withdrawals or use your own bank card to avoid 5 TWD cross-bank fee per transaction. Cash shortages at peak times (especially airports) are common; plan ahead.

Final Words

The Yen has evolved from a simple travel currency to a tool for safe-haven and investment asset allocation. Whether for next year’s Japan trip, hedging against TWD depreciation, or testing forex swing trading, following the principles of “gradual currency exchange + don’t leave the money idle” can minimize costs and maximize returns.

For beginners, the fastest way is to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then move into fixed deposits, ETFs, or forex trading based on your needs. Not only will you enjoy more cost-effective travel, but you’ll also add a layer of asset protection during global market fluctuations.