Japanese Yen Exchange Guide: How to Make the Most of 50,000 TWD?

By the end of 2025, the NT dollar to Japanese Yen exchange rate has reached 4.85, appreciating about 8.7% from the low of 4.46 at the beginning of the year. This wave of appreciation is no coincidence—expectations of the Bank of Japan raising interest rates have increased, yen safe-haven buying has grown, plus the continuous depreciation pressure on the NT dollar has led many to seriously consider exchanging for yen. But here’s a question: do you know the most cost-effective way to exchange?

Compared to other foreign currencies (like the Malaysian Ringgit, which is usually fixed around 0.3 and changes little), the volatility and investment opportunities of the yen are clearly more attractive. We’ve summarized four mainstream currency exchange methods, calculated with real data, to show you which one is truly the most cost-effective.

Why has exchanging for yen become a hot topic now?

Many people think exchanging for yen is just for traveling abroad, but the situation has changed over the years.

Travel and daily needs are still there, but investment attributes are more critical. The purchasing of Japanese cosmetics, fashion, anime merchandise remains huge, and many plan long-term stays in Japan for working holidays. But more importantly, the yen is internationally recognized as one of the three major safe-haven currencies (alongside the USD and Swiss Franc). During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while global stock markets fell 10%—a testament to its safe-haven capability.

For Taiwanese investors, when Taiwan stocks face volatility, exchanging for yen isn’t just for fun—it can hedge risks. Plus, the Bank of Japan is expected to raise interest rates soon (market expectations are a 0.25 basis point increase to 0.75% on December 19, hitting a 30-year high), and yen fixed deposits now offer annual interest rates of 1.5-1.8%, making it more attractive for investment.

Cost breakdown of 4 yen exchange methods

Just looking at bank rates, you can’t see the difference, but the actual costs vary greatly. Let’s use an example of 50,000 TWD to illustrate.

Method 1: In-person cash exchange (most traditional, highest cost)

Bring TWD to a bank or airport counter to exchange for yen in cash, using the “cash selling rate.” This rate is about 1-2% worse than the spot rate, and some banks charge handling fees.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.206 TWD per yen (1 TWD ≈ 4.85 yen). With 50,000 TWD, you get about 242,000 yen. Using the spot rate (about 4.87), you could get 245,000 yen—almost 2,000 TWD less, a loss.

Suitable for: Urgent airport cash needs, small amounts, unfamiliar with online operations
Estimated cost: Loss of 1,500–2,000 TWD

Method 2: Foreign currency ATM withdrawal (most flexible, 24/7)

Use a chip card at a foreign currency ATM to withdraw yen directly, deducting only 5 TWD cross-bank fee from your TWD account. E.SUN Bank’s foreign currency ATM limit is 150,000 TWD per day; CTBC Bank’s is 120,000 TWD.

This method’s advantage is anytime, anywhere—great for spontaneous decisions or batch withdrawals. The downside is limited locations (~200 nationwide), fixed denominations (1,000/5,000/10,000 yen), and cash shortages during peak times.

Suitable for: No time to visit banks, need immediate withdrawal, batch buying
Estimated cost: Loss of 800–1,200 TWD

Method 3: Online currency exchange + in-person withdrawal (a middle ground, moderate cost)

Use bank app or online banking to convert TWD to yen at the “spot selling rate,” depositing into a foreign currency account. When cash is needed, go to a branch or ATM to withdraw, paying a conversion fee (usually starting at 100 TWD).

Suitable for those with forex experience, wanting to observe low-rate periods for staggered entry. E.SUN Bank and CITIC Bank offer this service, with rates about 1% better than in-branch.

Suitable for: Forex experienced investors, dollar-cost averaging, considering foreign currency fixed deposits
Estimated cost: Loss of 500–1,000 TWD

Method 4: Online currency conversion + airport pickup (most cost-effective for travel)

No need to open a foreign currency account. Just fill in the amount, pick a branch and date on the bank’s website, complete the transfer, then bring ID and transaction notice to pick up cash in person. Taiwan Bank’s “Easy Purchase” service is fee-free (pay via TaiwanPay, only 10 TWD), with about 0.5% exchange rate advantage.

The biggest benefit is the ability to reserve airport branch pickup—Taoyuan Airport has 14 Taiwan Bank outlets, 2 of which operate 24 hours. For travelers planning ahead, this is the most convenient option.

Suitable for: Well-planned trips, pre-booking, wanting to pick up cash at the airport
Estimated cost: Loss of 300–800 TWD

Is now a good time to exchange yen? The key is “batching”

In December 2025, the NT dollar to yen exchange rate is between 4.8 and 4.87. Having rebounded from the year’s low, there’s already some exchange gain. But is now the “absolute best” time? Not necessarily.

Short-term factors affecting the yen:

• BOJ rate hike expectations have pushed Japanese bond yields to a 17-year high of 1.93%. The rate hike could happen as early as December 19, which is positive for the yen.
• US-Japan interest rate spread has narrowed. US rates are around 6.5%, while the yen’s rate is expected to rise to 0.75%. The spread from 4% to 5.75% may lead to arbitrage unwinding, causing short-term volatility.
• Medium-term trend: USD/JPY has fallen from a high of 160 at the start of the year to 154.58, and is expected to fluctuate below 150 in the medium to long term.

Advice: Do not exchange all at once; instead, batch your purchases. For example, divide into 3-4 parts, each around 12,000–15,000 TWD, to spread out risk. Also, combine “online currency exchange + airport pickup” or “ATM withdrawal” to minimize costs.

After exchanging yen, where should the money go?

Many people just hold onto the yen, wasting investment opportunities.

Yen fixed deposits are the safest: E.SUN, Taiwan Bank, Mega Bank support online foreign currency accounts, with a minimum deposit of 10,000 yen and annual interest rates of 1.5–1.8%. Compared to TWD fixed deposits (usually 0.6–1%), the returns are better.

Yen ETFs (like Yuanta 00675U, Cathay 00703) are suitable for those wanting growth but avoiding direct forex trading. These ETFs track yen indices, can be bought as fractional shares via broker apps, with management fees below 0.5%, suitable for regular investment.

Yen insurance policies from Cathay and Fubon are savings insurance with guaranteed interest rates of 2–3%, suitable for holding 3–5 years.

Compared to other currencies like MYR (which offers around 2–2.5% but with higher volatility), yen’s safe-haven attribute and stable returns make it more suitable for investors with moderate risk tolerance.

Quick FAQs

Q: How much is the difference between cash exchange rate and spot rate?
A: About 1–2%. Cash rate is the bank’s price for exchanging banknotes, including costs and risk premiums. Spot rate is the market standard (T+2 settlement), close to international prices.

Q: How much yen can I get for 10,000 TWD now?
A: Using Taiwan Bank’s cash selling rate of 0.206, about 48,500 yen. Using the spot rate (~0.205), about 48,800 yen.

Q: What do I need to bring for in-person currency exchange?
A: ID + passport (for locals); passport + residence permit (for foreigners). For large amounts (over 100,000 TWD), declare source of funds.

Q: What is the daily withdrawal limit at foreign currency ATMs?
A: Varies by bank. CTBC, Taishin about 120,000–150,000 TWD; E.SUN about 50,000–150,000 TWD depending on card. It’s best to split withdrawals to avoid exceeding limits.

Summary

The yen has evolved into an asset with travel, hedging, and investment functions. Whether you plan to visit Kyoto in spring or want to hedge against TWD depreciation, mastering “batch exchange + post-exchange investment” can minimize costs.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then consider fixed deposits or ETFs as needed. This way, you can enjoy more cost-effective travel and add a layer of protection during global market turbulence.