The Japanese Yen exchange rate has risen to 4.85. Is it now a good time to exchange? Understand the cost differences among 4 different exchange methods.

This year, the Japanese Yen has shown a strong upward trend, with the TWD/JPY exchange rate rising from 4.46 at the beginning of the year to 4.85 in December, a cumulative appreciation of 8.7%. But this also means that the costs of currency exchange are becoming more apparent—the same 50,000 TWD could result in a difference of over 1,500 TWD depending on the method used.

Are you ready to exchange for JPY? Whether it’s for traveling abroad next year or hedging against TWD depreciation by holding JPY, the key is choosing the right currency exchange method. We will clarify the latest four options for you.

Is it cost-effective to exchange JPY now? Staggered operations are the way to go

Brief answer: Yes, but do it in batches.

As one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), the Yen has long attracted investment. Especially with the recent hawkish comments from Bank of Japan Governor Ueda Kazuo reinforcing rate hike expectations—projected to rise to 0.75% at the December 19 meeting (a 30-year high)—the market prices in an 80% chance of a rate increase. Japanese government bond yields have hit a 17-year high of 1.93%, USD/JPY has fallen from a high of 160 to 154.58, and in the short term, it may oscillate around 155, but the medium to long-term trend leans below 150.

For investors, JPY is suitable for hedging Taiwan stock market volatility, but the risk is that closing arbitrage trades could trigger 2-5% fluctuations. It is recommended to enter in batches rather than all at once, to average costs and seize low points.

Cost comparison of 4 currency exchange channels

The main differences in exchange costs come from: exchange rate spreads (cash vs spot), handling fees, and operational time restrictions. Taking 50,000 TWD as an example, let’s analyze each:

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

Bring cash TWD to a bank counter or airport to exchange for JPY banknotes. This method is straightforward but uses the “cash selling rate,” which is 1-2% worse than the spot rate, resulting in higher overall costs.

Cost estimate: Using Taiwan Bank’s December 10 rate, the cash selling rate is about 0.2060 TWD per JPY (i.e., 1 TWD = 4.85 JPY), so 50,000 TWD can buy about 242,000 JPY. If using the spot rate (about 4.87), the difference is 200-300 JPY, roughly 40-60 TWD—seems small, but with bank handling fees (e.g., E.SUN 100 TWD per transaction, Cathay 200 TWD), the actual loss is about 1,500-2,000 TWD.

Suitable for: Those unfamiliar with online operations, needing small emergency cash (e.g., remembering to exchange only upon arrival), or travelers who prefer not to use financial apps.

Bank cash selling rates (as of 2025/12/10):

Option 2: Online exchange + ATM withdrawal—balancing flexibility and cost

Use bank app or online banking to convert TWD to JPY at the “spot selling rate,” saving about 1% on the spread, then withdraw cash via counter or foreign currency ATM when needed, incurring about 100 TWD or more in withdrawal fees.

Advantages: 24/7 online operation, ability to observe exchange rates at low points (e.g., when TWD/JPY drops below 4.80) and gradually build positions. E.SUN, Taiwan Bank, Mega Bank support online spot conversions with better rates than cash.

Cost estimate: Online conversion of 50,000 TWD plus withdrawal costs about 500-1,000 TWD total, saving 500-1,000 TWD compared to counter exchange.

Suitable for: Those with basic forex experience, accustomed to mobile banking, planning to invest in JPY deposits or ETFs.

Option 3: Online exchange + airport pickup—best pre-departure solution

No need for a foreign currency account, just book the exchange online via bank website (fill in currency, amount, pickup branch, date), then bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” platform and Mega Bank offer this service, with designated branches at Taoyuan Airport.

Taiwan Bank advantage: Free online exchange (pay with Taiwan Pay, only 10 TWD fee), about 0.5% better rate. 14 airport locations nationwide (2 open 24 hours), allowing you to pick up cash directly at the airport before departure, saving time and avoiding banking hours.

Cost estimate: 50,000 TWD exchange costs only 300-800 TWD, the lowest among options.

Suitable for: Clear travel plans, wanting to pick up cash at the airport, seeking the lowest cost. Requires 1-3 days advance booking.

Option 4: Foreign currency ATM 24-hour withdrawal—quick fix for urgent needs

Use chip-enabled bank card at foreign currency ATMs to withdraw JPY cash anytime, supporting interbank transactions (only about 5 TWD interbank fee, much lower than other methods). E.SUN’s foreign currency ATMs deduct directly from TWD account, with a daily limit of 150,000 TWD, and importantly, can withdraw amounts under 1,000 TWD, offering maximum flexibility.

Impact of new rules: After October 2025, several banks adjusted withdrawal limits. CTBC and Taishin support up to 120,000 TWD equivalent per transaction, E.SUN up to 50,000 TWD (about 50 banknotes). RMB withdrawals have a single-transaction limit of 20,000 RMB. Remember to check your bank’s rules in advance; during peak times (like at airports), cash may run out, so don’t wait until the last minute.

Cost estimate: 50,000 TWD withdrawal costs about 800-1,200 TWD (no forex fee, but limited ATM availability).

Suitable for: Urgent, on-the-spot needs, busy professionals without time to visit branches.

Comparison of the 4 options

After exchanging for JPY, don’t let your money sit idle

Once you have JPY, make it work for you. Based on your risk appetite, there are 4 options:

1. JPY fixed deposit (conservative): Starting from 10,000 JPY, annual interest rate 1.5-1.8%. E.SUN, Taiwan Bank support online foreign currency accounts for transfers.

2. JPY insurance policies (medium-term): Cathay, Fubon life offer yen-denominated savings insurance with guaranteed rates of 2-3%.

3. JPY ETFs (growth): Yuanta 00675U tracks the JPY index, can be bought as fractional shares or regular investment with a management fee of 0.4% annually.

4. Forex trading (aggressive): Directly trade USD/JPY or EUR/JPY to capture exchange rate fluctuations. Supports both long and short positions, 24-hour trading, suitable for experienced investors.

The BOJ rate hikes are positive for JPY, but global arbitrage closing or geopolitical conflicts may still suppress its value. Diversification—part in deposits, part in ETFs—is the safest route for beginners.

Quick FAQ

Q: How much is the difference between cash rate and spot rate?
Cash rates are usually 1-2% worse. For example, Taiwan Bank’s cash selling rate is 0.2060, spot is about 0.2078, difference around 0.18%, so 50,000 TWD exchange yields about 200-300 JPY less.

Q: How many JPY for 10,000 TWD?
At December 10 Taiwan Bank rate of 4.85, about 48,500 JPY. Using spot rate 4.87, about 48,700 JPY, difference around 200 JPY.

Q: What to bring for counter exchange?
Taiwanese: ID + passport; foreigners: passport + residence permit. Online booking requires transaction notice. Under 20 years old need parent accompaniment; over 100,000 TWD must declare source of funds.

Q: Max withdrawal per day at ATM?
Varies by bank. CTBC supports up to 120,000 TWD/day, Taishin 150,000 TWD/day, E.SUN 150,000 TWD/day (including debit). Spread withdrawals to avoid hitting limits.

Conclusion: staggered exchange + post-exchange investment

JPY is no longer just for travel pocket money but also an asset for hedging and growth. Adopt a dual strategy of “batch low-cost buying + investing after exchange” to minimize costs.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup,” which is lowest cost and simple. Or use foreign currency ATMs for quick small amounts, easily withdrawing under 1,000 TWD. After acquiring JPY, allocate about 10% into deposits to test the waters, then adjust with ETFs or wave trading based on market signals.

This way, you not only enjoy cost-effective travel but also add a layer of asset protection against TWD depreciation. Start your staggered entry now.