NTD to JPY vs CAD? 2025 Latest Exchange Rate Plans and Cost Calculations

When it comes to exchanging foreign currencies, Taiwanese people are most accustomed to the Japanese Yen. But have you ever thought about considering options like exchanging TWD for CAD against the backdrop of the TWD depreciation? As of December 10, the TWD to JPY exchange rate has reached 4.85, and travel and hedging strategies in Japan are heating up again. However, to truly get a good deal, you need to understand the cost differences across various channels.

Why is it worth exchanging for JPY? Analyzing from three major perspectives

Travel and Practical Use

Whether shopping in Tokyo, skiing in Hokkaido, or purchasing from Japanese e-commerce, JPY is essential. Japan’s credit card penetration is only 60%, and cash remains the mainstream. For students or working holidaymakers, exchanging currency in advance can avoid the extra burden caused by sudden fluctuations.

Financial Hedging Attributes

The JPY, along with USD and Swiss Franc, is one of the world’s three major safe-haven currencies. Japan’s economy is stable with low debt. During the Russia-Ukraine conflict in 2022, the JPY appreciated by 8% in a week, while the stock market fell by 10%—a demonstration of its hedging capability. For Taiwanese investors, exchanging for JPY is not just for consumption but also a tool to hedge against Taiwan stock risks.

Interest Rates and Arbitrage Opportunities

Japan’s long-term ultra-low interest rate (~0.5%) creates arbitrage space with the US’s 4%+ interest rate differential. Investors can borrow low-interest JPY to invest in higher-yield USD, and when risks increase, close positions for profit. The current annual interest rate for Japanese fixed deposits is 1.5-1.8%, attractive for conservative investors.

Four channels for Taiwanese to exchange for JPY, with significant cost differences

Exchanging JPY seems simple, but the cost differences across channels can amount to several cups of bubble tea. Here’s a breakdown with actual figures.

Option 1: Bank counter cash exchange — the most traditional but most expensive

Bring cash TWD to a bank or airport counter to exchange for JPY cash. It’s straightforward but costly. Banks use the “cash selling rate” (1-2% worse than the spot rate), plus possible handling fees, making it the most expensive option.

For example, Taiwan Bank’s cash selling rate on December 10 is 0.2060 TWD/JPY (equivalent to 1 TWD = 4.85 JPY). E.SUN Bank’s rate is 0.2067, but with a 100 TWD fee per transaction. Exchanging 50,000 TWD results in a loss of about 1,500–2,000 TWD.

Suitable for: Urgent airport needs, unfamiliar with online methods

Disadvantages: Higher costs due to exchange margin, limited operating hours, multiple fees

Option 2: Online banking exchange + ATM withdrawal — moderate cost, flexible

Transfer TWD to a foreign currency account via app or online banking, using “spot selling rate” (about 1% discount), then withdraw JPY at ATMs. With E.SUN Bank, you can withdraw JPY from your TWD account with a daily limit of 150,000 TWD, paying only 5 TWD for interbank fee, no exchange fee.

This method suits those who want to buy in batches and monitor exchange rates. When TWD/JPY drops below 4.80, buy on dips for better average costs. About 500–1,000 TWD for 50,000 TWD worth of exchange.

Suitable for: Those with forex experience, aiming for dollar-cost averaging, long-term holders

Disadvantages: Need to open a foreign currency account, limited ATM locations (about 200 nationwide)

Option 3: Online currency exchange + airport pickup — the most convenient pre-departure plan

No need for a foreign currency account. Fill in amount, branch, and date on the bank’s website, then pick up in person at the counter. Taiwan Bank’s “Easy Purchase” has no handling fee (pay only 10 TWD via TaiwanPay), with a 0.5% exchange rate advantage. Taoyuan Airport has 14 Taiwan Bank counters, including 2 open 24 hours, very convenient.

Cost for 50,000 TWD is about 300–800 TWD, making it the best choice for planned trips abroad.

Suitable for: Well-planned travelers needing airport pickup

Disadvantages: Need to book 1–3 days in advance, pickup limited to bank operating hours

Option 4: Foreign currency ATM instant withdrawal — fastest but limited denominations

Use a chip-enabled financial card to withdraw JPY cash 24/7 at foreign currency ATMs. Only 5 TWD fee for interbank withdrawal. However, ATM denominations are fixed (1,000/5,000/10,000 JPY), and locations are limited. During peak times (like airports), cash may run out. Cost is about 800–1,200 TWD.

Suitable for: Emergency needs, those who don’t have time to visit banks

Disadvantages: Limited locations and denominations, possible cash shortages

Quick comparison table of the four options

Is it a good time to exchange for JPY now? Timing guide

On December 10, the TWD/JPY rate is 4.85, appreciating 8.7% since the beginning of the year, making the exchange gains quite attractive. In the second half of the year, Taiwan’s forex demand increased by 25%, mainly driven by travel recovery and hedging strategies.

Short-term exchange rate outlook

The Bank of Japan’s Governor Ueda Kazuo recently adopted a hawkish tone, raising market expectations of rate hikes to 80%, with a projected increase of 0.25 basis points to 0.75% on December 19 (a 30-year high). USD/JPY has fallen from 160 at the start of the year to 154.58 now. In the short term, it may return to around 155, but medium to long-term forecasts suggest below 150.

What does this mean? It’s a good time to exchange, but do it in batches. The JPY still has significant volatility, and full conversion at once carries risks. It’s recommended to buy in 3-4 installments, observing the market as you go.

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

Once you’ve exchanged for JPY, consider the following ways to grow your money:

JPY fixed deposit: The most stable, with annual interest rates of 1.5–1.8%. Minimum 10,000 JPY, available online at E.SUN and Taiwan Bank.

JPY insurance policies: Medium-term holdings, with Cathay and Fubon offering yen savings insurance with guaranteed interest rates of 2–3%.

JPY ETFs (like 00675U, 00703): Growth-oriented options tracking the JPY index. You can buy fractional shares via broker apps for dollar-cost averaging, with an annual management fee of 0.4%.

Forex swing trading: Advanced traders can trade USD/JPY or EUR/JPY on forex platforms, operating 24/7 with small capital participation.

Converting TWD to CAD? Multi-currency allocation considerations

When discussing currency allocation, some ask: why not exchange for CAD? CAD and JPY each have their advantages. CAD is more closely linked to USD, with interest rates following the Fed; JPY is an independent safe-haven asset, negatively correlated with global risk events. If you seek stable returns, choose JPY fixed deposits or insurance; if optimistic about North American economy, allocate to CAD. But considering Taiwan’s geopolitical risks and Asian allocation needs, JPY’s defensive strength remains superior.

Pre-exchange FAQ

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

Cash rate is the bank’s quote for physical cash, with the advantage of immediate delivery but 1–2% worse than the spot rate. The spot rate is the market price for FX settlement T+2, used for electronic transfers, offering better rates but requiring settlement time. Simply put, cash is more expensive, spot is cheaper.

Q. How much JPY can I get for 10,000 TWD?

Using the formula: JPY amount = TWD amount × current rate

At 4.85, 10,000 TWD ≈ 48,500 JPY. Using the more favorable spot rate of 4.87, it’s about 48,700 JPY, a difference of 200 JPY (~NT$40).

Q. What should I bring for counter exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. If booked online, bring transaction confirmation. Under 20 years old, parental consent required; amounts over NT$100,000 may require source of funds declaration.

Q. Are there withdrawal limits at ATMs?

From October 2025, many banks have reduced daily limits to NT$100,000–NT$150,000 equivalent. For example, China Trust’s limit is NT$120,000, Taishin and E.SUN are NT$150,000 (including credit card). When using cross-bank ATMs, watch out for the 5 TWD fee per transaction.