Japanese Yen Exchange Guide: Cost Comparison of Four Major Channels and the Best Timing

Opening Up: Why Is Holding JPY Worth It?

In Taiwan, the demand for currency exchange to Japanese Yen has been increasing year after year, but the underlying reason is not just tourism. From an investment perspective, the yen, as one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), can effectively hedge risks during market volatility. Taking the 2022 Russia-Ukraine conflict as an example, the yen appreciated by 8% in a single week, while the Taiwan stock market fell by 10%—this demonstrates the power of a safe-haven currency.

For investors with idle TWD, exchanging to JPY not only meets travel needs but also provides asset protection during periods of global financial instability. Plus, with the Bank of Japan’s interest rate hike imminent (expected to reach a 30-year high of 0.75%), the investment appeal of the yen is increasing month by month.

Is Now a Good Time to Exchange for JPY? Key Timing Considerations

As of December 2025, the TWD/JPY rate has reached 4.85, up 8.7% from 4.46 at the start of the year. From a currency exchange profit perspective, this is a relatively good entry point, especially considering the pressure of TWD depreciation.

However, the short-term risk of volatility in the yen still exists. The US rate cut cycle favors the yen, but global arbitrage unwinding could cause fluctuations of 2-5%. It is recommended to adopt a staged exchange strategy to avoid converting all at once. Market forecasts suggest that USD/JPY may test 155 in the short term, with a medium to long-term target below 150.

If you are optimistic about the yen’s safe-haven properties, you can compare it with Australia’s deposit rates (around 3-3.5% annually), weigh the risk-reward ratio, and decide on your allocation accordingly.

Four Practical Channels for Exchanging TWD to JPY in Taiwan

Option 1: Bank Counter Cash Exchange (Most Traditional)

Bring cash to a bank or airport counter to exchange for JPY cash, using the “cash selling rate.” This method is straightforward but usually lags the market rate by 1-2%.

For example, Taiwan Bank’s cash selling rate on December 10 was 1 JPY = 0.2060 TWD (equivalent to a 4.85 exchange rate), but some banks charge an additional handling fee of 100-200 TWD. Exchanging 50,000 TWD would result in a total loss of about 1,500-2,000 TWD.

When to choose this? For urgent, small amounts (under 3,000 TWD), or when unfamiliar with online procedures—just bring ID and passport for immediate transaction.

Option 2: Online Currency Exchange to Foreign Currency Account (Investment-Oriented)

Use bank app or online banking to convert TWD to JPY at the “spot selling rate” (about 1% better than cash rate), depositing into a foreign currency account. If later needing cash, withdraw via ATM or counter, but with additional withdrawal fees (around 100 TWD).

Advantages include staged entry. When TWD/JPY drops below 4.80, you can gradually build your position, averaging your cost. For 50,000 TWD, total costs are about 500-1,000 TWD. After exchange, you can transfer JPY into fixed deposits (interest rates 1.5-1.8%) or buy JPY ETFs (like Yuanta 00675U, annual management fee 0.4%) for passive income.

When to choose this? For those experienced in forex investing, long-term bullish on the yen, especially if aiming for passive income via fixed deposits or ETFs.

Option 3: Online Reservation for Currency Exchange and Airport Pickup (Travelers’ Must-Have)

No need to open a foreign currency account—just fill in amount and pickup location on the bank’s website, then go in person with ID and transaction notice to collect. Taiwan Bank’s “Easy Purchase” online exchange is fee-free (using Taiwan Pay, only 10 TWD), with about 0.5% favorable rate, costing only 300-800 TWD total.

The biggest advantage is airport pickup. Taoyuan Airport has 14 Taiwan Bank counters, including 2 open 24 hours—perfect for last-minute flights or transfers. Booking 1-3 days in advance ensures you can pick up cash directly before departure, avoiding stockouts.

When to choose this? Planning ahead for travel, wanting to pick up cash at the airport, and seeking favorable rates.

Option 4: Foreign Currency ATM Withdrawal (Most Flexible)

Use a chip-enabled bank card at foreign currency ATMs to withdraw JPY cash, operable 24/7. E.SUN Bank’s foreign currency ATM limit is 150,000 TWD per day; TAIPEI BANK charges only 5 TWD cross-bank fee for TWD account withdrawals, with no currency exchange fee. However, there are about 200 such ATMs nationwide, and cash may run out during peak times.

For 50,000 TWD, total costs are about 800-1,200 TWD. Best suited for urgent, unexpected needs—like a sudden business trip to Japan or when time is tight. Avoid last-minute use at popular locations like airports or stations, where cash may be depleted.

When to choose this? Emergency needs, time constraints, 24-hour flexibility required.

Quick Comparison Table of the Four Main Methods

After Exchanging for JPY: How to Keep Your Money Growing

Simply holding JPY in your account is a waste. Based on current market conditions, consider the following advanced options:

1. JPY Fixed Deposit (Conservative)
Interest rate 1.5-1.8%, minimum 10,000 JPY, risk-free. Lower than AUD fixed deposits (3-3.5%), but JPY offers stronger safe-haven attributes. Suitable for conservative investors.

2. JPY Insurance Policies (Mid-term Holding)
Cathay, Fubon Life offer JPY savings insurance with guaranteed rates of 2-3%, combining asset protection and returns.

3. JPY ETFs (Growth-Oriented)
Yuanta 00675U tracks the JPY index, with 0.4% annual management fee, suitable for long-term bullish views on the yen.

4. Forex Swing Trading (Advanced)
Trade USD/JPY, EUR/JPY on platforms like Mitrade—zero commission, low spreads, 24/7 operation. Offers stop-loss, take-profit, trailing stops, but involves higher risk and requires trading experience.

Common FAQs

Q: What’s the difference between cash rate and spot rate?
Cash rate applies to physical banknotes, usually less favorable (higher bank costs); spot rate is used for electronic transfers, closer to international market prices. The difference is typically 1-2%, so exchanging 50,000 TWD could mean a 400-1,000 TWD difference.

Q: How much JPY can 10,000 TWD buy?
At current 4.85 rate, about 48,500 JPY; at spot rate 4.87, about 48,700 JPY—roughly 200 JPY difference (~40 TWD).

Q: What documents are needed for counter exchange?
ID card + passport (if pre-booked online, bring transaction notice). Under 20 needs parent’s accompaniment; amounts over 100,000 TWD may require source of funds declaration.

Q: Are there limits for foreign currency ATM withdrawals?
Limits vary by bank. CTBC: 120,000 TWD/day; Taishin: 150,000 TWD/day; E.SUN: 50,000 TWD per transaction, 150,000 TWD/day. Consider spreading withdrawals or using your bank’s card to save cross-bank fees.

Final Recommendations

The yen has evolved from a “travel pocket money” to a “hedge + investment asset.” Facing TWD depreciation and global market instability, appropriate allocation to JPY is a wise move.

Key strategies: Staged exchange (avoid being trapped by one-time full conversion) + Actively invest after exchange (immediately into fixed deposits or ETFs). Beginners should start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then gradually move into JPY fixed deposits, ETFs, or forex trading as they gain experience.

This approach reduces exchange costs and adds a layer of protection amid global market fluctuations.