Japanese Yen Exchange Guide: The 4 Most Cost-Effective Ways in Taiwan by 2025

In December 2025, the Taiwanese dollar against the Japanese yen reached a level of 4.85, appreciating nearly 9% since the beginning of the year. Whether you’re preparing for a Tokyo shopping trip or positioning hedging assets amid exchange rate fluctuations, now is a critical moment. But did you know? Simply choosing different exchange channels can result in cost differences of up to several thousand yuan.

The Two Main Incentives to Exchange for Yen

Tourism and Consumption

Traveling to Japan remains the favorite overseas choice for Taiwanese. Tokyo department stores, Osaka night markets, Hokkaido hot springs—most of these classic attractions only accept cash (credit card penetration is only 60%), making yen cash a necessity. Additionally, from purchasing Japanese cosmetics and anime peripherals to Japanese online shopping, many enthusiasts are accustomed to transacting directly in yen. Those planning to study or work in Japan also need to exchange currency in advance to avoid the cost pressures caused by sudden exchange rate fluctuations.

Financial Investment Perspective

The yen is one of the three major safe-haven currencies globally (alongside USD and Swiss Franc), with a solid position. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a single week, buffering stock market declines. For Taiwanese investors, exchanging into yen is not only for leisure but also a strategic asset allocation to hedge Taiwan stock risks.

On the other hand, the Bank of Japan has maintained ultra-low interest rates (only 0.5%) for a long time, making the yen a “financing currency” for arbitrage trading. Investors borrow low-interest yen, convert to higher-yield USD for investment, with a spread of up to 4%. When risks rise, they close positions and buy back yen, forming a complete arbitrage ecosystem.

Four Exchange Options: Cost and Convenience Comparison

Option 1: Bank Counter Cash Exchange — The Traditional but Most Expensive

Carrying cash directly to a bank branch or airport counter to exchange for yen cash. This method is the safest, with denominations available (1,000, 5,000, 10,000 yen), and staff assistance on-site, especially suitable for urgent airport needs or elderly travelers.

The downside is using the “cash selling rate”—which is 1-2% worse than the spot rate—resulting in the greatest overall loss. Taiwan Bank’s cash selling rate as of December 10, 2025, is 0.2060 TWD/JPY (about 48,500 yen per 10,000 TWD), but some banks also charge an additional 100-200 TWD handling fee.

For 50,000 TWD, this method costs about 1,500-2,000 TWD in losses. It’s recommended only as a backup plan unless you have plenty of time and no other options.

Option 2: Online Currency Exchange, ATM Withdrawal — A Balanced Choice

Using bank apps or online banking, transfer TWD to a foreign currency account, enjoying the “spot sell rate” (about 1% discount). If cash is needed, withdraw at a counter or via foreign currency ATM, which incurs a currency exchange fee (starting at 100 TWD).

Advantages include staged entry, 24-hour operation, and lower average costs. Disadvantages are the need to open a foreign currency account first, and cross-bank withdrawal fees apply. Using a Citibank card at other bank ATMs incurs about 5-15 TWD cross-bank transfer fee, further reducing costs.

For 50,000 TWD, this method costs about 500-1,000 TWD in losses. Suitable for those experienced with forex, wanting to buy in stages at lower points. After exchange, you can also directly invest in yen fixed deposits (annual interest rate 1.5-1.8%) or purchase yen ETFs.

Option 3: Online Currency Conversion for Airport Pickup — Ideal for Office Workers

No need for a foreign currency account. Simply fill in the amount and branch for pickup on the bank’s official website. After remittance, bring ID and transaction notification to the counter for collection. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service, with Taoyuan Airport having 14 Taiwan Bank outlets (including 2 open 24 hours), allowing last-minute cash pickup before departure.

Taiwan Bank’s online currency conversion is fee-free (pay via Taiwan Pay, only 10 TWD), with about 0.5% better exchange rate. Note that prior reservation (at least 1-3 days) is required, and pickup is limited to banking hours; branches cannot change the schedule.

For 50,000 TWD, costs are about 300-800 TWD in losses. This is the top choice for planned travelers, especially those with confirmed itineraries who want to withdraw cash directly at the airport.

Option 4: Foreign Currency ATM Withdrawal — Maximum Flexibility

Use a chip-enabled bank card to withdraw yen cash at foreign currency ATMs, available 24/7. Deducts only about 5 TWD cross-bank fee from TWD account, with no currency exchange fee. E.SUN Bank’s foreign currency ATMs have a daily limit of 150,000 TWD, supporting major currencies.

Disadvantages include fewer than 200 ATMs nationwide, fixed denominations (1,000/5,000/10,000 yen), and cash shortages during peak times (especially at airports). It’s advised not to wait until the last minute before departure to withdraw, as risks of unavailability are higher.

For 50,000 TWD, costs are about 800-1,200 TWD in losses. Suitable for time-constrained travelers, those who don’t want to visit banks, or office workers used to 24/7 access.

Quick Reference Table for 50,000 TWD Exchange Options

Is It Worth Exchanging Yen Now?

By the end of 2025, the TWD/JPY exchange rate remains relatively high. From 4.46 at the start of the year to 4.85 now, an appreciation of about 8.7%, providing Taiwanese investors with considerable forex gains. The second half of the year saw a 25% increase in demand for exchange, mainly driven by travel recovery and hedging strategies.

But the real test lies in the Bank of Japan’s policy moves. Governor Ueda’s recent hawkish comments have pushed up rate hike expectations to 80%, with a forecast of a 0.25 bps increase to 0.75% on December 19 (a 30-year high). Japanese government bond yields have hit a 17-year high of 1.93%.

USD/JPY has fallen from a high of 160 at the start of the year to 154.58 now, with further medium-term decline expected below 150. Short-term fluctuations may hover around 155, with a volatility of 2-5%.

Conclusion: Exchanging now is advantageous but requires staged entry. Full conversion at once carries higher risk; spreading purchases over multiple times can average costs. For hedging investments, yen is an effective buffer against Taiwan stock volatility, but be aware of the risks involved in closing arbitrage positions.

Four Exit Strategies After Converting Yen

Don’t let the yen you’ve exchanged sit and depreciate. Here are four options from conservative to aggressive, suitable for beginners:

Yen Fixed Deposit: The most stable. E.SUN and Taiwan Bank offer foreign currency accounts, allowing online deposits into yen fixed deposits, starting from 10,000 yen, with annual interest rates of 1.5-1.8%, three times higher than TWD fixed deposits.

Yen Insurance Policy: Medium-term holding. Cathay and Fubon life insurance offer yen savings policies with guaranteed rates of 2-3%, combining protection and returns. Suitable for risk-averse investors.

Yen ETF: Growth-oriented. Yuanta 00675U tracks the yen index, with a management fee of only 0.4%. You can buy fractional shares via brokerage apps for diversification and to enjoy yen appreciation dividends.

Forex Trading: Swing trading. Directly trade USD/JPY or EUR/JPY currency pairs, with 24-hour trading and both long and short positions, suitable for those experienced with forex volatility. Zero-commission platforms enable small-scale effective operations.

FAQs About Exchanging Yen

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

Cash exchange rate is the rate banks offer for physical banknotes, providing immediate delivery and portability, but usually 1-2% worse than the spot rate. The spot rate is the T+2 settlement rate in the forex market, close to international prices, suitable for electronic transfers and import/export transactions, offering better rates but requiring settlement time.

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

Using Taiwan Bank’s December 10, 2025, cash selling rate of 0.2060, 10,000 TWD can buy about 48,500 yen. With the spot rate of 0.2055, it’s approximately 48,700 yen, a difference of about 200 yen (roughly TWD 40).

Q: What should I bring for counter exchange?

ID card + passport are basic. Foreigners should bring passport + residence permit. Company exchanges require business registration proof. If pre-booked online, bring transaction notification. Minors under 20 need parental accompaniment; amounts over 100,000 TWD may require source of funds declaration.

Q: What’s the daily withdrawal limit at foreign currency ATMs?

Starting October 2025, banks have adjusted limits. CITIC and other banks’ cards typically have a daily limit of 120,000-150,000 TWD, depending on the issuing bank. E.SUN’s own cards allow 50,000 TWD per withdrawal (about 50 banknotes) and a daily limit of 150,000 TWD. It’s recommended to diversify withdrawals or use your own bank card to avoid cross-bank fees.

Final Reminder

The yen is no longer just travel “pocket money” but an asset with hedging and investment value. Whether for airline tickets or asset allocation, adopting a “staged buying + full investment” mindset can lower costs and increase returns.

Beginners are advised to start with Taiwan Bank’s online currency conversion or foreign currency ATMs, then transfer into fixed deposits, ETFs, or forex swing trading based on limits and goals. This approach makes traveling more economical and provides an extra layer of protection during global market risks.