Japanese Yen Exchange Guide | Cost Comparison of 4 Major Channels, Find Out Which One Suits You

The exchange rate of TWD to JPY has reached 4.85, attracting market attention to other currencies such as HKD as well. As Japan’s travel popularity rebounds, more and more people want to exchange for yen, but do you know? Choosing the wrong exchange method could cost you thousands in spread alone.

Is it worth exchanging for yen? The dual value from travel to investment

Many people think of yen as just “pocket money” for overseas trips, but in reality, the yen’s position in the financial market is far more important than imagined.

Clear needs for travel and daily life

Cash usage in major Japanese commercial districts remains high at 40% (credit card penetration is only 60%), and scenarios like shopping agents, hotel bookings, and buying souvenirs all require cash in yen. Plus, online shopping for Japanese cosmetics, fashion, and anime merchandise often requires direct yen transfers. Students working abroad also start exchanging months in advance to avoid being caught by exchange rate fluctuations.

From a financial market perspective: a stable hedge asset

The yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), due to Japan’s stable economy and good debt structure. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a single week, while the stock market fell 10%—a clear demonstration of its safe-haven effect. For Taiwanese investors, holding yen amid TWD depreciation can effectively hedge against Taiwan stock market volatility.

Additionally, the Bank of Japan has maintained ultra-low interest rates (currently 0.5%) for a long time, making the yen a “funding currency.” Investors borrow low-interest yen, convert to higher-yield USD, with interest rate spreads over 4.0%. When risks rise, they close positions, and such arbitrage trading drives yen fluctuations, creating trading opportunities.

Is now a good time to exchange? Timing and data analysis

As of December 10, 2025, TWD to JPY is 4.85, meaning 1 TWD can buy 4.85 yen. Compared to the beginning of the year at 4.46, the appreciation is 8.7%—a good return for long-term yen holders.

In the second half of the year, Taiwan’s forex demand increased by 25%, mainly due to travel recovery and institutional hedging. But should you exchange all now? The answer is: yes, but in installments.

The yen is currently in a fluctuation zone. The Fed’s rate cut cycle supports the yen, but the Bank of Japan’s hawkish rate hike expectations are strong—Governor Ueda’s hawkish comments pushed expectations up to 80%, with a projected rate hike of 0.25 basis points to 0.75% on December 19 (a 30-year high). This has caused USD/JPY to fall from the high of 160 at the start of the year to 154.58 now, with short-term support around 155, and medium-long-term forecasts below 150.

Recommended strategy: stagger your entries, avoid exchanging everything at once. If used for investment, beware of short-term 2-5% volatility from arbitrage position closing.

Four major channels to exchange yen in Taiwan — tested

There are four mainstream methods, with significant differences in cost and convenience. Using an example of exchanging 50,000 TWD, we analyze each.

Method 1: Bank counter cash exchange — most traditional but highest cost

Bring cash TWD to a bank or airport counter to buy yen cash. Simple operation, but using the “cash selling rate,” which is about 1-2% worse than the spot rate. For example, Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 (equivalent to 4.85 yen per TWD), with some banks adding a fixed fee of 100-200 TWD.

Exchanging 50,000 TWD this way, estimated loss is 1,500-2,000 TWD. Suitable for those unfamiliar with online operations or needing small, urgent exchanges, e.g., at the airport. But if you have time to plan, this is definitely not the first choice.

Method 2: Online forex exchange with withdrawal — popular among investors

Use online banking to convert TWD to yen, deposited into a foreign currency account. This uses the “spot selling rate,” which is about 1% better than cash selling. If you need cash withdrawal, you can do so at counters or via foreign currency ATMs, but with withdrawal fees (usually starting at 100 TWD).

Suitable for those experienced in forex, who often use foreign currency accounts. You can observe exchange trends, buy in installments when the rate is low (e.g., TWD/JPY below 4.80), averaging your cost. After exchange, consider transferring to yen fixed deposits (current annual interest 1.5-1.8%) to earn interest while waiting for rate hikes.

Exchanging 50,000 TWD this way, estimated loss is 500-1,000 TWD.

Method 3: Online currency exchange + airport pickup — best before travel

No need to pre-open a foreign currency account. Simply fill in currency, amount, pickup branch, and date on the bank’s website. Taiwan Bank’s “Easy Purchase” service is especially convenient, offering about 0.5% better rates, with payment via TaiwanPay for just 10 TWD. You can reserve pickup at Taoyuan Airport (14 branches, 2 open 24 hours).

Ideal for travelers with a plan who want to withdraw cash at the last minute before departure. Fast process, favorable rates, often no handling fee. The only downside is the need to make reservations (at least 1-3 days in advance), and pickup is limited to bank hours.

Exchanging 50,000 TWD this way, estimated loss is 300-800 TWD.

Method 4: Foreign currency ATMs — 24/7 self-service withdrawal

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen cash. The only 24/7 option, with cross-bank fee of just 5 TWD. E.SUN Bank’s foreign currency ATMs allow withdrawal from TWD accounts, with a daily limit of 150,000 TWD and no exchange fee.

Advantages: instant, flexible. Disadvantages: limited locations (~200), fixed denominations (1,000/5,000/10,000 yen), and risk of sold-out cash during peak times (especially at airports). Don’t wait until the last minute to withdraw, or risk failure.

Exchanging 50,000 TWD this way, estimated loss is 800-1,200 TWD.

Quick comparison table of the 4 methods

Common Q&A quick answers

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

Cash exchange rate applies to physical cash buying/selling, handed over on the spot, convenient but usually 1-2% worse than the spot rate. Spot rate is used for electronic transfers or cashless settlement (bank interbank, foreign currency accounts), usually settled in T+2, closer to international market prices.

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

Using the formula: Yen amount = TWD amount × current rate. For example, at Taiwan Bank’s cash selling rate of 4.85 on December 10, 2025, 10,000 TWD ≈ 48,500 yen. Using the spot selling rate (~4.87), about 48,700 yen, difference around 200 yen.

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

Taiwanese: ID card + passport; foreigners: passport + residence permit. If pre-booked online, also bring transaction notice. Under 20 need parent’s consent; exchanging over 100,000 TWD may require source of funds declaration.

Q: Is there a daily limit for ATM withdrawal?

Banks have reduced limits to 10-15万 TWD/day due to new regulations in 2025. CTBC: 120,000 TWD/day; Taishin: 150,000 TWD/day; E.SUN: 150,000 TWD/day (including debit). It’s recommended to split withdrawals or use your bank card to avoid cross-bank fees.

After exchanging for yen, what’s next?

Instead of letting yen cash sit idle in your drawer earning no interest, consider moving into stable income or growth investments.

Yen fixed deposit — a conservative choice

Open a foreign currency account at E.SUN, Taiwan Bank, etc., deposit yen online. Minimum 10,000 yen, current annual interest 1.5-1.8%. Although not high, compared to TWD deposits, yen deposits combined with appreciation potential can yield 3-4% annualized return.

Yen insurance policy — medium-term protection

Buy foreign currency savings insurance from Cathay, Fubon Life, with guaranteed interest rates of 2-3%, providing both insurance coverage and interest income. Suitable for 3-5 year medium-term allocation.

Yen ETFs — growth-oriented

Yuanta 00675U tracks the yen index, can be bought as fractional shares via brokerage apps, with low minimums. Management fee only 0.4%, suitable for those wanting exposure to yen appreciation without complex trading.

Yen forex trading — swing trading

Trade USD/JPY or EUR/JPY directly on forex platforms. Advantages include two-way trading, 24-hour market, small capital required, ideal for traders sensitive to rate fluctuations and short-term opportunities.

Final reminder

While the yen is a safe haven, it still faces two-way volatility risks. BOJ rate hikes support the yen, but global arbitrage unwinding or geopolitical conflicts could depress the rate. If used purely for investment rather than travel, consider yen ETFs for diversification; for swing trading, both long and short positions are possible, but set stop-loss orders carefully.

The core principle is simple: stagger your exchanges, don’t just buy and hold. Whether for travel, shopping, or asset allocation, mastering these two points can lower costs and increase returns. Before your next yen exchange, remember to compare these four methods and choose the one best suited for you.