Ultimate Guide to Japanese Yen Exchange｜The 4 Most Cost-Effective Plans in 2025 Revealed

The pressure of TWD depreciation is intensifying, and the Japanese Yen has become the preferred safe haven for Taiwanese investors. As of the latest exchange rates on December 10, TWD to JPY has surpassed 4.85, appreciating 8.7% since the beginning of the year, making currency exchange gains considerable. But do you know? Using the wrong method with the same 50,000 TWD could result in a loss of 1,500-2,000 NT dollars. Let us clarify once and for all how to exchange JPY in a truly cost-effective way.

Why exchange JPY now? Is the timing right?

Many ask: Is it worthwhile to exchange JPY now? The answer is: Yes, but in installments.

The Japanese Yen, as one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), is especially popular during market turbulence. During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week, buffering a 10% decline in the stock market. For Taiwanese investors, exchanging for Yen is not just for travel but also for hedging against Taiwan stock market volatility.

From an investment perspective, the Bank of Japan is on the verge of raising interest rates—Governor Ueda Kazuo’s hawkish comments have pushed market expectations to 80%, with a rate hike of 0.25 basis points to 0.75% expected on December 19 (a 30-year high). Japanese government bond yields have hit a 17-year high of 1.93%. The USD/JPY has fallen from a high of 160 at the start of the year to 154.58; short-term may rebound to 155, but medium to long-term forecasts suggest below 150.

In other words, staggered entry is key—avoid exchanging all at once to prevent losses if the rate drops again.

Practical comparison｜4 ways to exchange JPY, which is most cost-saving?

Many think that exchanging Yen just involves going to the bank, but in reality, choosing the right method can save the cost of a few bubble teas. Below is a practical comparison of the four most common channels in Taiwan:

Method 1: Bank counter cash exchange (most traditional, highest cost)

Bring cash TWD to the bank or airport counter, and receive Yen cash on the spot. It sounds convenient, but it uses the “cash selling rate,” which is 1-2% worse than the spot rate, plus possible handling fees, resulting in the biggest loss overall.

Cost estimate (based on 50,000 TWD):

• TWD cash selling rate of 0.2060 (1 TWD = 4.85 Yen), no handling fee
• Loss of about 1,500-2,000 NT dollars
• Suitable for: urgent airport needs, those unfamiliar with online operations

Comparison among banks (as of December 10, 2025):

Method 2: Online exchange, pick-up at counter (balanced approach)

Use bank app or online banking to convert TWD to Yen at the “spot sell rate” (about 1% better than cash selling rate), deposit into a foreign currency account, then pick up cash at the counter or ATM. Allows averaging costs through multiple purchases, especially suitable for those monitoring exchange rates actively.

Cost estimate (50,000 TWD):

• Loss of about 500-1,000 NT dollars
• Suitable for: experienced forex investors, those wanting to buy in installments
• Advantages: better exchange rate, 24-hour operation, can invest in Yen deposits (current annual interest 1.5-1.8%)

Method 3: Online currency conversion, airport pick-up (best cost-performance ratio)

No need for a foreign currency account. Simply fill in currency, amount, pick-up branch, and date on the bank’s official website. After remittance, bring ID and transaction notification to pick up in person. Taiwan Bank and Mega Bank offer this service, with appointment options at airports.

Taiwan Bank’s “Easy Purchase” online currency conversion is fee-free (pay only 10 NT$ via TaiwanPay), with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank outlets (2 open 24 hours), very convenient.

Cost estimate (50,000 TWD):

• Loss of about 300-800 NT dollars
• Suitable for: planned travelers, pre-trip arrangements
• Advantages: best exchange rates, often no handling fees, airport pick-up options

Method 4: Foreign currency ATM cash withdrawal (most flexible)

Use a chip-enabled debit card at foreign currency ATMs to withdraw Yen cash, available 24/7, with only 5 NT$ cross-bank fee per transaction. Fubon Bank’s foreign currency ATMs allow withdrawal from TWD accounts, with a daily limit of 150,000 NT$, no exchange fee.

Disadvantages: limited locations (~200 nationwide), cash may run out during peak times, denominations fixed (1000/5000/10000 Yen).

Cost estimate (50,000 TWD):

• Loss of about 800-1,200 NT dollars
• Suitable for: urgent needs, no time to visit banks

Quick reference table for the four main methods

Our recommendation: For budgets between 50,000 and 200,000 NT$, a combination of “online currency conversion + ATM withdrawal” is most cost-effective.

After exchanging Yen, don’t let your money sit idle

Once you have Yen, don’t let it earn zero interest. Here are four investment options suitable even for beginners:

1. Yen fixed deposit: Most stable, starting from 10,000 Yen, annual interest rate 1.5-1.8%, suitable for conservative investors.

2. Yen insurance policies: Medium-term holding, savings insurance with guaranteed interest rates of 2-3%.

3. Yen ETFs (e.g., Yuanta 00675U, 00703): Growth-oriented, tracking Yen indices, can be bought as fractional shares via broker apps, management fee around 0.4% annually.

4. Forex trading: Directly trade USD/JPY or EUR/JPY, capturing exchange rate fluctuations, with both long and short positions, 24-hour trading.

Note: The BOJ’s rate hikes are positive for Yen, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) may suppress it. For investment, Yen ETFs help diversify risk. For intraday or swing strategies, forex trading is a classic way to profit from exchange rate movements.

Quick FAQs

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

Cash rate applies to physical cash transactions, settled immediately but at a worse rate (1-2% worse). Spot rate is used for electronic transfers, T+2 settlement, closer to international market prices.

Q: How much Yen can I get with 10,000 NT$?

Using Taiwan Bank’s December 10 rate, cash selling rate of 4.85, 10,000 NT$ ≈ 48,500 Yen. Using spot rate 4.87, ≈ 48,700 Yen, difference about 200 Yen (roughly NT$40).

Q: What do I need to bring for counter exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. For online booking, also bring transaction notification. Large amounts (>100,000 NT$) may require source of funds declaration.

Q: What’s the daily limit for foreign currency ATM withdrawals in Taiwan?

From 2025, most banks set limits around 100,000-150,000 NT$ per day. It’s advisable to split withdrawals or use your own bank card to avoid cross-bank fees (5 NT$ per transaction). During peak times, cash may run out; plan ahead.

Final reminder

Yen is no longer just pocket money for travel but also an asset with hedging and investment value. Whether saving Yen for Japan trips next year or hedging against TWD depreciation by converting some funds into Yen, following the principles of “staggered exchange + investing after exchange” can minimize costs and maximize returns.

Beginners can start with “Taiwan Bank online currency conversion + airport pick-up” or “foreign currency ATM,” then move into deposits, ETFs, or forex swings based on needs. This way, you not only enjoy cost-effective travel but also add a layer of protection during global market turbulence.