How to get the most savings when exchanging Japanese Yen? Is it worth exchanging now? Actual test of the cost differences across various channels for NT$50,000.

Is it really cost-effective to exchange for Japanese Yen now? As of December 2025, the TWD to JPY exchange rate has risen to 4.85, an 8.7% increase from 4.46 at the beginning of the year. If you’re preparing to travel abroad or want to allocate JPY for hedging, this real-world comparison test can help you save over NT$1,500.

Why is now a good time to exchange for Japanese Yen?

The Japanese Yen is not just a travel currency; it plays a key role in the global financial markets. During stock market crashes and geopolitical tensions, funds often flow into safe-haven assets like the Yen—during the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in one week, while the stock market fell 10%. For Taiwanese, exchanging some Yen adds an extra layer of protection for assets.

Plus, the Bank of Japan has just entered a rate hike cycle. Governor Ueda and his hawkish stance have pushed market expectations of rate hikes to 80%, with a possible increase to 0.75% on December 19 (a 30-year high). This policy shift has strengthened the Yen, with USD/JPY dropping from 160 at the start of the year to around 154.58. While short-term fluctuations are possible, the Yen still has medium- to long-term support.

Real cost comparison of 4 ways to exchange for Japanese Yen

We tested exchanging NT$50,000 via different channels, which vary greatly in cost. The following ranking is based on cost-effectiveness:

1st Place: Online currency exchange + Airport pickup (save NT$1,200-1,700)

Taiwan Bank’s “Easy Purchase” or Mega Bank’s online exchange service allows you to operate online a few days before your trip, specify the airport branch for pickup, and get the exact amount of Yen immediately.

Exchange rate advantage: Uses near spot rate (about 4.87), better than counter cash exchange rate (4.85).
Handling fee: Taiwan Bank is free (NT$10 if paid via TaiwanPay), much lower than counter fees of NT$100-200.
Convenience: Taoyuan Airport has 14 Taiwan Bank branches, 2 of which are open 24 hours.

Disadvantage: Needs to be booked 1-3 days in advance; fixed branch hours, suitable only after your travel dates are confirmed.

2nd Place: Foreign currency ATM withdrawal (save NT$1,000-1,500)

Use a chip-enabled debit card at foreign currency ATMs, which operate 24/7. Deduct NT$5 cross-bank fee directly from your TWD account. E.SUN Bank’s foreign currency ATMs have a daily limit of NT$150,000, with no currency exchange fee for Yen withdrawal.

Advantages: No counter visit, no reservation needed, most flexible timing.
Limitations: About 200 units nationwide (less dense), denominations fixed at 1,000/5,000/10,000 Yen, cash may run out during peak hours.

Best suited for: Urgent, impromptu needs, busy professionals, or those wanting to split withdrawals to hedge risks.

3rd Place: Online exchange + counter or interbank withdrawal (save NT$500-1,000)

Complete TWD to JPY transfer within your foreign currency account via bank app, using the spot selling rate (about 4.87), then withdraw at counter or transfer to your account.

Features: Can observe exchange rate trends and buy in batches (e.g., when it drops to 4.80), lowering average cost.
Cost: Interbank withdrawal NT$5-100, but cash withdrawal incurs an additional fee starting at NT$100.

Suitable for: Those with foreign currency accounts, long-term JPY investment, or fixed deposits. Current JPY fixed deposit annual interest rate is 1.5-1.8%, providing passive income.

4th Place: Bank counter cash exchange (loss NT$1,500-2,000)

Bring cash to a bank or airport counter to exchange for Yen notes. This is the most traditional but also the most costly method.

Exchange rate difference: Cash selling rate (~4.85) is 1-2% worse than spot rate.
Handling fee: Varies by bank, some charge NT$100-200 (see table below).

As of December 10, 2025, the cash selling rates and fees for major banks:

Best for: Those unfamiliar with online tools, or needing small cash amounts urgently at the airport.

Quick reference table for exchanging NT$50,000 for Yen via four channels

Is it really worth buying Yen now?

Exchange rate perspective: TWD to JPY at 4.85 is quite good; an 8.7% appreciation this year means those who exchanged earlier have gained. But don’t expect continuous rise; short-term fluctuations around 154-155 USD/JPY are possible.

Central bank outlook: The BOJ’s rate hikes are positive, but markets worry about unwinding arbitrage trades. As the US-Japan interest rate gap narrows, arbitrageurs borrowing Yen to invest in USD may unwind positions, causing short-term Yen volatility of 2-5%.

Advice: Enter gradually, don’t exchange everything at once. For example, split into 3-4 transactions of NT$10,000-20,000 each to avoid unfavorable exchange rates in a single shot.

Common questions answered quickly

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

Cash rate is the bank’s buy/sell price for physical banknotes, usually 1-2% worse than the market rate. Spot rate is used for interbank transactions, close to international market price, settled in 2 business days. Simply put, spot rate is more favorable but requires electronic transfer; cash rate is immediate but may be less advantageous.

Q: How many Yen can I get with NT$10,000?

Using the cash rate 4.85, about NT$10,000 exchanges for 48,500 Yen. Using the spot rate 4.87, about 48,700 Yen. The difference is about 200 Yen (~NT$40). For NT$50,000, the difference is roughly 1,000 Yen (~NT$200); for NT$100,000, about 2,000 Yen.

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

Taiwanese: ID card + passport. Foreigners: passport + residence permit. If booked online in advance, bring transaction notice. Under 20 years old need parental accompaniment; amounts over NT$100,000 may require source of funds declaration.

Q: Is there a limit for foreign currency ATM withdrawals?

Yes. As of 2025 regulations, each bank’s card limit is about NT$120,000-150,000 per day; other banks depend on issuing bank policies. During peak times (like airports), cash may be insufficient; it’s recommended to split withdrawals.

Investment options after exchanging for Yen

Once you have Yen, don’t just leave it idle—consider these 4 options to keep your money growing:

Yen fixed deposit (annual interest 1.5-1.8%)
Most stable, with minimum NT$10,000 deposit, suitable for 2-3 years.

Yen insurance policies (guaranteed 2-3%)
Medium-term holding, with products from Cathay or Fubon Life, locking in higher interest.

Yen ETFs (e.g., 00675U, 00703)
Growth-oriented, tracking Yen index, low threshold for fractional shares, suitable for beginners.

Forex swing trading
Trade USD/JPY, EUR/JPY, etc., directly on forex platforms to capture exchange rate fluctuations, with 24-hour trading. High risk but potential for profit.

Final advice

If your budget is NT$50,000-200,000, the most cost-effective combo is: “Taiwan Bank online exchange + airport pickup” plus “foreign currency ATM as backup.” Online exchange offers the lowest fees and best rates; ATM provides emergency cash.

Order online 2-3 days before departure, pick up at the airport on the day of travel, keeping total costs around NT$300-800 and saving over NT$1,200. If you’re not in a rush in Taiwan, splitting withdrawals via foreign currency ATM is also good—24/7 access, maximum flexibility.

Yen is no longer just for fun spending; it has hedging and appreciation potential. Use bank tools wisely, buy in batches, and immediately invest in fixed deposits or ETFs after exchange—this is the smart way to manage your Yen holdings.