Japanese Yen Exchange Guide: Cost Comparison of 4 Major Channels, When is the Best Time to Exchange in 2025?

Is it Cost-Effective to Exchange for Yen Now? Key Data Reveals

As of December 10, 2025, the Taiwan dollar has risen above 4.85 against the Japanese yen, up from 4.46 at the beginning of the year, an increase of 8.7%. Whether you’re preparing for a trip to Japan or hedging your investments, the attractiveness of exchanging for yen has indeed increased. But is this the right timing to act? The answer is: Yes, but in installments.

Currently, the yen is in a fluctuation range. The US entering a rate-cut cycle supports the yen, while the Bank of Japan Governor Ueda Kazuo recently signaled a hawkish stance, with market expectations of a rate hike to 0.75% on December 19 (a 30-year high), and Japanese government bond yields surging to a 17-year high of 1.93%. USD/JPY has fallen from 160 at the start of the year to 154.58, with short-term fluctuations possibly returning to 155, but the medium to long-term outlook is below 150.

For investors, the yen, as one of the world’s three major safe-haven currencies (alongside the USD and Swiss Franc), is especially attractive under the pressure of TWD depreciation—similar to the logic of exchanging New Taiwan Dollars for Malaysian Ringgit, which involves allocating stronger currencies during regional depreciation cycles to hedge risks. However, short-term arbitrage closing trades may trigger 2-5% volatility, so installment entry is essential.

Why Exchange for Yen? It’s Not Just About Travel

Daily Life Scenarios

When traveling in Japan, shopping spots in Tokyo and Osaka, ski resorts in Hokkaido, and resorts in Okinawa mostly accept cash (credit card penetration is only 60%). Additionally, buyers of Japanese cosmetics, fashion, and anime merchandise often need to pay directly in yen; those planning to study or work in Japan also exchange money in advance to avoid exchange rate fluctuations.

Investment and Financial Value

The yen’s safe-haven attribute stems from Japan’s stable economy and manageable debt. During market turbulence, funds flow into the yen—during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, successfully buffering a 10% decline in the stock market. For Taiwanese investors, exchanging for yen isn’t just for travel; it also serves as a hedge against Taiwan stock market risks.

Moreover, Japan maintains ultra-low interest rates (only 0.5%), making the yen a “financing currency.” Many investors borrow low-interest yen to exchange for higher-yield USD investments (the USD/JPY interest rate differential reaches 4.0%), then close positions and buy back yen when risks increase.

4 Ways to Exchange Yen, with Different Costs and Convenience

1. Bank or Airport Counter Exchange: The Most Traditional, Most Expensive

Bring cash in TWD to a bank or airport to exchange for yen bills. Simple to operate, but banks use “cash selling rates” (1-2% worse than spot rates), plus possible handling fees, making it costly.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, was about 0.2060 TWD per yen (1 TWD = 4.85 yen). Different banks have slight variations; E.SUN Bank and Cathay United Bank charge an additional NT$100-200 per transaction.

Suitable for: Those unfamiliar with online operations or needing small, urgent exchanges (e.g., at the airport).

Estimated cost: Exchanging NT$50,000 results in a loss of NT$1,500-2,000.

2. Online Exchange, Withdraw at Counter or ATM: Balanced Approach

Use bank app or online banking to convert TWD to yen in a foreign currency account at the “spot selling rate” (about 1% better than cash selling rate), then withdraw cash at counter or foreign currency ATM. If withdrawing cash, a handling fee starting at NT$100 applies.

This method suits investors observing exchange rate trends, entering in installments when the TWD/JPY rate drops below 4.80. E.SUN Bank, CTBC Bank, and others offer this service, with minimum foreign currency account deposits usually starting at 10,000 yen.

Suitable for: Those experienced with forex, using foreign currency accounts, and considering yen fixed deposits (annual interest rate 1.5-1.8%).

Estimated cost: Exchanging NT$50,000 results in a loss of NT$500-1,000.

3. Online Currency Exchange, Pick Up at Designated Branch: Best Reservation Method

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After completion, bring ID and transaction notification to the branch for pickup. Taiwan Bank’s “Easy Purchase” online currency exchange is fee-free (pay NT$10 via TaiwanPay), with about 0.5% exchange rate advantage.

The biggest benefit is the ability to reserve airport branch pickup. Taoyuan Airport has 14 Taiwan Bank branches, two of which operate 24 hours—ideal for planning before departure.

Suitable for: Well-planned travelers who want to pick up cash directly at the airport.

Estimated cost: Exchanging NT$50,000 results in a loss of NT$300-800.

4. Foreign Currency ATM: 24/7 Self-Service, Limited Locations

Use a chip-enabled debit card at foreign currency ATMs to withdraw yen cash, operational 24 hours. Withdrawal from TWD account costs only NT$5 cross-bank fee (free with our bank).

SinoPac Bank’s foreign currency ATMs allow daily withdrawals of up to NT$150,000 from TWD accounts, with no exchange fee. However, only about 200 ATMs nationwide, with fixed denominations (1,000/5,000/10,000 yen), and cash may run out during peak times.

Suitable for: Those who don’t have time to visit a bank or need urgent cash.

Estimated cost: Exchanging NT$50,000 results in a loss of NT$800-1,200.

Cost Comparison Table of 4 Methods

Best Hybrid Approach for Beginners

For budgets of NT$50,000-200,000, we recommend the “Online Currency Exchange + Foreign Currency ATM” combo:

1. Main amount via online currency exchange: Reserve for airport pickup, with the best rates and lowest fees, saving NT$1,000-1,500.
2. Flexible amount via foreign currency ATM: For emergency cash needs, with only NT$5 cross-bank fee.

This way, you enjoy the best exchange rates while maintaining flexibility.

After Exchanging Yen: 4 Options to Make Your Money Work

Once you have yen, let it sit idle without interest. For small amounts, beginners can consider:

1. Yen Fixed Deposit: Annual interest 1.5-1.8%, minimum 10,000 yen, suitable for conservative investors.
2. Yen Insurance Policy: Medium-term holding, guaranteed interest 2-3%, issued by Cathay or Fubon Life.
3. Yen ETFs (e.g., 00675U, 00703): Track yen index, can buy fractional shares, management fee 0.4%, suitable for dollar-cost averaging.
4. Forex Trading USD/JPY, EUR/JPY: Capture exchange rate fluctuations, zero commission, low spreads, long/short, 24-hour trading.

Frequently Asked Questions

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

Cash exchange rate is the rate banks offer for physical cash, delivered immediately but 1-2% worse than the spot rate. The spot rate is the market rate settled within two business days, more favorable but requires T+2 settlement.

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

Based on Taiwan Bank’s rate on December 10, 2025, cash selling rate about 4.85, NT$10,000 ≈ 48,500 yen; using the spot rate of 4.87, about 48,700 yen.

Q: What ID do I need for counter exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. Under 20 needs parental accompaniment; amounts over NT$100,000 require source of funds declaration; online reservation also requires transaction notification.

Q: What’s the daily withdrawal limit at foreign currency ATMs?

Post-2025 regulations, many banks have reduced the limit to NT$100,000-150,000 per day with our bank cards. It’s recommended to split withdrawals or use our bank card to avoid cross-bank fees. During peak times (like at airports), cash may run out, so plan ahead.

Summary

The yen is no longer just for travel pocket money but also an asset with hedging and investment value. Whether preparing for next year’s Japan trip or hedging against TWD depreciation by converting some funds into yen, following the principles of “installment exchange + not leaving funds idle after exchange” can minimize costs and maximize returns.

Beginners are advised to start with “Taiwan Bank online currency exchange + airport pickup” or “foreign currency ATM,” then diversify into fixed deposits, ETFs, or forex trading based on needs. This not only makes your trips more cost-effective but also adds a layer of protection during global market turbulence.