Japanese Yen exchange rate hits 4.85 high point | Practical guide to TWD exchange, understand the costs of 4 major channels at a glance

In the current situation of December 2025, the Taiwanese dollar has reached a high point of 4.85 against the Japanese yen, reigniting travel and investment enthusiasm for Japan. Is it now worthwhile to exchange for yen? How significant are the cost differences among the four currency exchange channels? Using the latest real-time rates, we break down all the details of exchanging for yen.

Why should you pay attention to the yen now?

When it comes to exchanging foreign currency, many people’s first thought is the yen. The reason behind this is not just travel needs, but the yen’s important role in both daily life and investment.

Daily consumption scenarios: travel, shopping, studying abroad—necessity to exchange

For travelers frequently going to Japan, most merchants at attractions in Tokyo, Osaka, Hokkaido, Okinawa, etc., still primarily use cash transactions (credit card penetration is only about 60%). Additionally, purchasing Japanese cosmetics, fashion, and cross-border online shopping for anime merchandise all require settlement in yen directly. Students planning to study or work in Japan also exchange currency in advance to avoid exchange rate fluctuations close to departure.

Investment perspective: Yen as one of the world’s three major safe-haven currencies

Safe-haven attribute supports long-term value

The yen, along with the US dollar and Swiss franc, is one of the world’s three major safe-haven currencies, mainly due to Japan’s stable economy and manageable national debt scale. When market risks increase, capital tends to flow into the yen. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a single week, while global stock markets fell by 10%, demonstrating the yen’s buffering effect. For Taiwanese investors, moderate allocation of yen can effectively hedge against Taiwan stock market volatility.

Interest rate arbitrage and central bank policies

The Bank of Japan has maintained an ultra-low interest rate (around 0.5%) for a long time, making the yen a “funding currency” in the market. Investors often borrow yen at low interest and convert to higher-yielding USD or other currencies, with a US-Japan interest rate differential of about 4.0%. When market risks rise, these arbitrage trades are closed, putting short-term pressure on the yen.

Current yen exchange rates and evaluation

According to Taiwan Bank’s rate as of 9:18 AM on December 10, 2025, the cash selling rate for TWD to JPY is approximately 0.2060 TWD per yen (about 4.85 yen per 1 TWD). Compared to 4.46 at the start of the year, the yen has appreciated about 8.7% annually, providing noticeable forex gains for those exchanging. Especially under the pressure of TWD depreciation, demand for yen exchange in Taiwan grew by 25% in the second half of the year, mainly driven by travel recovery and increased hedging.

Short-term and medium-term trend judgment

Bank of Japan Governor Ueda Kazuo recently signaled a hawkish stance, with market expectations of rate hikes reaching 80%. The December 19 meeting is expected to raise rates by 0.25 bps to 0.75% (a 30-year high), with Japanese bond yields reaching a 17-year high of 1.93%. USD/JPY has fallen from the high of 160 at the start of the year to 154.58, likely fluctuating around 155 in the short term, but the medium to long-term target is below 150.

Key points for exchange decision: Staggered entry is better than all-in one go. Although the yen is a safe-haven asset, in the short term, arbitrage unwinding risks may cause volatility of 2-5%. It is recommended to exchange in parts when TWD is below 4.80, avoiding the risk of single-point purchase.

Deep comparison of Taiwan’s four major yen exchange channels

Many think exchanging yen only requires a bank visit, but the rate and handling fee differences among channels can affect total costs by NT$200 to NT$2000. Below, we analyze the pros and cons of each method.

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

Bring TWD cash directly to a bank branch or airport counter for on-the-spot yen cash exchange. This is the most straightforward method, but uses the “cash selling rate” (usually 1-2% worse than the spot rate), plus fixed handling fees from some banks, making it the most expensive.

Actual rate references

Based on December 10, 2025, latest rates from various banks: Taiwan Bank cash selling rate is 0.2060 TWD/JPY, Mega Bank 0.2062, CTBC 0.2065. E.SUN and Fubon charge NT$100 per transaction, Cathay United Bank NT$200. Exchanging NT$50,000 in cash would result in a loss of NT$1500-2000.

Suitable scenarios

This method is suitable for travelers unfamiliar with online operations or needing small, urgent exchanges (e.g., at the airport). Not recommended as the main exchange method.

Method 2: Online exchange + ATM withdrawal — flexible and balanced

Use bank app or online banking to convert TWD to yen and deposit into a foreign currency account (using “spot sell rate,” about 1% discount). If cash is needed, go to a bank counter or foreign currency ATM to withdraw, incurring exchange difference and withdrawal fees (about NT$100+).

Advantages include 24-hour operation, ability to split into batches for average cost, and favorable exchange rates. E.SUN Bank, Taiwan Bank, etc., offer online foreign currency account exchange. Current yen fixed deposit annual interest rate is about 1.5-1.8%, suitable for long-term holders.

Disadvantages include needing to open a foreign currency account in advance, and withdrawal fees. Cross-bank withdrawals cost NT$5-100. Exchanging NT$50,000 might incur NT$500-1000 loss.

Suitable for

Investors experienced in forex trading, frequently using foreign currency accounts, can transfer yen into fixed deposits for additional yield.

Method 3: Online currency exchange + airport or branch pickup — best pre-departure plan

No need to pre-open a foreign currency account. Fill in the exchange amount, pick-up branch, and date online, then complete remittance and pick up in person with ID and transaction notice. Taiwan Bank’s “Easy Purchase” service and Mega Bank support this, with appointment options at airport branches.

Taiwan Bank’s online exchange has no handling fee (NT$10 if paid via Taiwan Pay), with about 0.5% better rates. A major advantage is Taoyuan Airport has 14 Taiwan Bank outlets, including 2 open 24 hours, allowing direct pickup before departure without extra bank visits.

Disadvantages include needing to book at least 1-3 days in advance, and pickup times are limited by bank hours, with no changes possible at branches. Exchanging NT$50,000 might result in NT$300-800 loss.

Suitable for

Planners who want to pick up yen at the airport before departure.

Method 4: Foreign currency ATM withdrawal — fastest emergency option

Use a chip-enabled financial card at foreign currency ATMs to withdraw yen cash 24/7. Using our bank card incurs only NT$5 cross-bank fee, saving extra costs. Fubon Bank’s foreign currency ATMs allow withdrawal from NT dollar accounts without exchange fees, with a daily limit of NT$150,000.

The convenience of foreign currency ATMs lies in high flexibility and quick operation, suitable for urgent needs. However, there are only about 200 ATMs nationwide, with fixed denominations (1,000, 5,000, 10,000 yen), and cash often runs out during peak times (especially at airports). Do not wait until the last minute to withdraw.

Exchanging NT$50,000 might cost NT$800-1200 in fees, but the low handling fee makes it attractive.

Suitable for

People who lack time to visit branches or need quick, last-minute cash.

Summary table of the four exchange methods

Path to value appreciation after exchanging yen

After exchanging yen, don’t let your funds sit idle without earning interest. Based on holding period and risk appetite, here are some options:

Conservative: Yen fixed deposit

Open a foreign currency account at E.SUN Bank or Taiwan Bank and transfer yen online into a fixed deposit. Minimum NT$10,000 deposit, current annual interest rate 1.5-1.8%, more attractive than TWD deposits. Suitable for conservative investors.

Mid-term: Yen insurance savings

Cathay Life, Fubon Life, and others offer yen savings insurance with guaranteed interest rates of 2-3%, combined with variable returns. Suitable for 1-3 year medium-term holdings.

Growth: Yen-related ETFs

For example, Yuanta 00675U, a yen index ETF, can be bought in fractional shares via major brokerage apps, suitable for regular investment. Management fee about 0.4% annually, balancing risk and return.

Swing trading: Forex trading

Trade USD/JPY or EUR/JPY directly on forex platforms to capture short-term exchange rate movements. Advantages include two-way trading and 24-hour operation, but higher risk, suitable for experienced traders.

Common questions about exchanging yen

Q1: What’s the difference between cash rate and spot rate?

Cash rate is the rate banks offer for physical cash (notes and coins), settled immediately, convenient but usually 1-2% worse than the spot rate. Spot rate is the interbank market rate settled T+2, used for electronic transfers and non-cash settlement, closer to international market prices.

Q2: How much yen can I get with NT$10,000?

Based on Taiwan Bank’s rate on December 10, 2025, cash selling rate is about NT$0.2060/JPY, so NT$10,000 can buy about 48,500 yen. Using the spot rate of NT$0.2049/JPY (approximate), about 48,700 yen, difference around 200 yen (roughly NT$40).

Q3: What ID do I need for counter exchange?

Taiwanese citizens need ID card + passport; foreigners need passport + residence permit. If pre-booked online (online currency exchange), also bring transaction notice. Minors under 20 need parental consent and ID; large amounts over NT$100,000 may require source declaration.

Q4: What’s the limit for foreign currency ATM withdrawal?

Varies by bank. CTBC: NT$120,000 per transaction and per day; Taishin: NT$150,000; E.SUN: NT$50,000 per transaction, NT$150,000 per day. Other banks typically limit to NT$20,000 per transaction. After 2025, many banks lowered limits to NT$100,000-150,000 per day. It’s advisable to split withdrawals to avoid limits.

Summary and recommendations

The yen is no longer just for travel pocket money but also a hedging and investment asset. Whether preparing for travel to Japan next year or hedging against TWD depreciation, mastering the principle of “staggered exchange + not leaving funds idle” can minimize costs and maximize returns.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM withdrawal,” then further transfer yen into fixed deposits, ETFs, or small swing trades based on needs. This approach makes travel more cost-effective and adds a layer of financial protection amid global market fluctuations.