Japanese Yen Exchange Guide: Cost Comparison of Taiwan's Top 5 Currency Purchase Methods and the Optimal Strategy

December 10, 2025, the Taiwan dollar to Japanese yen has reached the 4.85 level. Compared to the beginning of the year at 4.46, this represents an accumulated appreciation of approximately 8.7%. As the Japanese travel boom resumes and the Taiwan dollar faces depreciation pressure, more and more investors are paying attention to the potential of the yen as a safe-haven asset. However, many overlook a key question: where to exchange yen to truly save costs?

Why the Yen Has Become an Essential Currency for Taiwanese People

From daily life to financial allocation, the practicality of the yen exceeds expectations.

Everyday Consumption

Shopping in Tokyo and Osaka, skiing vacations in Hokkaido, beach holidays in Okinawa—up to 40% of merchants at these destinations still only accept cash payments. When purchasing Japanese cosmetics, clothing, or anime merchandise, direct yen settlement is necessary. If planning to study abroad or work holiday in Japan, pre-purchasing currency can lock in exchange rates and reduce risk.

Financial Hedging Properties

The yen is one of the world’s three major safe-haven currencies, alongside the US dollar and Swiss franc. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in one week, even as global stock markets plummeted, the yen strengthened against the trend. For Taiwanese investors, holding yen is equivalent to insuring their investment portfolios.

Currently, Bank of Japan Governor Ueda Kazuo has signaled a hawkish stance, with market expectations of an 80% chance of a rate hike in December, with a potential increase of 0.25 to 0.75 percentage points (a 30-year high). Simultaneously, Japan’s long-term government bond yields have risen to 1.93%, reaching a 17-year high. These changes will further support the yen’s exchange rate.

How to Buy Yen Most Economically? Five Major Methods Cost Test

Many believe exchanging yen only requires a bank visit, but in reality, the exchange rate spread alone can cost an extra 2000-3000 TWD. Below is a comparison of the costs of five currency purchase methods.

First Type: Traditional Over-the-Counter Cash Exchange

Go directly to a bank or airport counter to exchange cash for yen. This is the most straightforward method but also the most costly.

Banks use the “cash selling rate,” which is usually 1-2% worse than the spot rate. For example, Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 TWD per yen (i.e., 1 TWD = 4.85 yen). Some banks also charge an additional 100-200 TWD handling fee.

Exchanging 50,000 TWD this way results in a loss of about 1,500-2,000 TWD. This method is best suited for travelers needing small amounts of cash urgently or older individuals less comfortable with online transactions.

Mainstream Bank Exchange Rate Comparison Table (as of December 10, 2025)

Second Type: Online Purchase + ATM Withdrawal

Use bank app or online banking to convert TWD into yen and deposit into a foreign currency account, using the “spot selling rate,” which is about 1% better than cash selling. If cash is needed later, withdraw via foreign currency ATMs or counters, incurring additional spread and handling fees (usually starting at 100 TWD).

This method suits long-term yen investors, allowing for phased entry at lower rates (when TWD/JPY is below 4.80). Total cost for 50,000 TWD is approximately 500-1,000 TWD.

Foreign currency ATMs are available 24/7, with only about 5 TWD cross-bank fee deducted from the TWD account, saving queue time. However, there are about 200 such ATMs nationwide, and cash shortages may occur during peak times (e.g., airports).

Third Type: Online Currency Purchase + Airport Pickup

The most convenient option before departure. Fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notice to pick up at the counter. Taiwan Bank’s “Easy Purchase” service has no handling fee (pay with TaiwanPay, only 10 TWD), with about 0.5% better exchange rate.

Taoyuan Airport has 14 Taiwan Bank branches, including 2 open 24 hours, allowing pickup at any time before departure without being limited to regular hours (9:00-15:30). Cost for 50,000 TWD is about 300-800 TWD.

Requires at least 1-3 days’ advance reservation and cannot change pickup branch, suitable for well-planned travelers.

Fourth Type: Foreign Currency ATM Cross-Bank Withdrawal

Use a chip-enabled debit card at foreign currency ATMs to withdraw yen directly, deducting from TWD account, with only 5 TWD cross-bank fee. E.SUN Bank offers yen withdrawals with a daily limit of 150,000 TWD, no currency exchange fee.

Main limitation: limited locations, fixed denominations of 1,000, 5,000, or 10,000 yen. During peak times, cash may be out, especially at airports or malls. Cost for 50,000 TWD is about 800-1,200 TWD.

Suitable for urgent, unplanned needs.

Fifth Type: International Remittance + Overseas ATM Withdrawal

Some choose to exchange yen in Taiwan, deposit into an account, then use international cards (Mastercard/Cirrus) to withdraw in Japan. Note that Japan’s ATM withdrawal services will be adjusted by the end of 2025, with some institutions ceasing support. Costs are unpredictable, and exchange rates depend on local banks; generally not recommended.

Cost Comparison Table of the Five Methods

Based on actual costs for exchanging 50,000 TWD:

Common FAQs

What is the difference between spot exchange rate and cash exchange rate?

Cash exchange rate is the buy/sell rate banks offer for physical banknotes, suitable for in-person transactions, with the advantage of immediate cash but usually 1-2% worse than the spot rate. The spot rate is the foreign exchange market rate for settlement within two business days, mainly used for electronic transfers or non-cash transactions, and more aligned with international market prices.

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

Using Taiwan Bank’s cash selling rate of 4.85 on December 10, 2025, 10,000 TWD can buy approximately 48,500 yen. Using the spot rate (~4.87), it’s about 48,700 yen, a difference of roughly 200 yen (about 40 TWD).

What documents are needed for counter exchange?

Taiwanese nationals need ID and passport; foreigners need passport and residence permit. If pre-booked online, bring transaction notice. Minors under 20 require parental consent and ID. For amounts over 100,000 TWD, declaration of source of funds may be required.

Are there withdrawal limits at foreign currency ATMs?

Yes. From October 2025, banks have adjusted anti-fraud policies, with daily limits for third-party digital accounts often reduced to 100,000-150,000 TWD. For example, CTBC supports up to 1.2 million yen (~12万 TWD) per day, Taishin Bank supports up to 150,000 TWD, and E.SUN supports 150,000 TWD (including card transactions). It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Is Now a Good Time to Exchange Yen?

Compared to the beginning of the year at 4.46, the TWD/JPY rate has risen to 4.85, appreciating by 8.7%. The exchange gains are significant, especially amid the TWD’s depreciation pressure.

However, the rate remains volatile. The US interest rate cut cycle is approaching, and the Bank of Japan is expected to hike rates, which could influence the exchange rate. USD/JPY has fallen from a high of 160 earlier this year to around 154.58 now, possibly returning to 155 in the short term, but medium to long-term forecasts suggest below 150.

For investors, the key is to adopt a “phased entry” strategy rather than exchanging all at once. This helps avoid buying at high points and reduces short-term volatility risk.

Market observations show that Taiwan’s forex demand increased by 25% in the second half of the year, mainly driven by travel recovery and hedging needs.

Investment Allocation After Buying Yen

Holding yen without further action leaves funds idle. Consider these four value-added options:

Yen Fixed Deposit

The safest choice. E.SUN Bank or Taiwan Bank’s foreign currency accounts allow online deposits starting from 10,000 yen, with current annual interest rates around 1.5-1.8%, risk-free.

Yen Insurance Policies

Cathay or Fubon Life offer yen savings insurance with guaranteed interest rates of 2-3%, suitable for medium-term holding (3-5 years).

Yen ETFs

Yuan Da 00675U or Fuhua 00703 ETFs track the yen index, purchasable in broker apps via fractional shares, suitable for regular investment. Management fee is about 0.4% annually.

Yen Forex Trading

Trade USD/JPY or EUR/JPY directly through forex platforms, supporting both long and short positions, 24-hour trading, and low capital requirements. This is a classic way to capture short-term exchange rate movements.

Summary and Recommendations

The yen has evolved from a simple travel currency to a financial asset with hedging and investment potential. Whether preparing for next year’s trip or adding protection to your portfolio, following the principles of “phased purchase” and “buy and allocate immediately” can minimize costs.

Beginners are advised to start with the simplest options like “Taiwan Bank online currency purchase + airport pickup” or “foreign currency ATM,” then, based on needs, transfer yen into fixed deposits, ETFs, or swing trading. This approach makes travel more economical and adds a layer of financial protection amid global market fluctuations.

Now is a good time to exchange yen, but remember: spreading out your purchases is better than one-time exchange, and small amounts are preferable to all-in positions.