Japanese Yen Exchange Guide | Foreign Currency ATM vs Bank Counter, How to Exchange 50,000 TWD Cheapest?

December 2025, the Taiwan dollar (TWD) against the Japanese yen (JPY) surged to 4.85, appreciating by 8.7% since the beginning of the year. Whether you’re preparing for a New Year’s trip to Japan or want to leverage the TWD depreciation pressure for hedging entry, now is the time to consider exchanging for yen. But the key question is: Should you choose a bank, ATM, or online?

Do You Really Need to Exchange for Yen?

The Japanese yen has surpassed the “travel pocket money” status. From a market perspective, it is one of the three major safe-haven currencies globally (USD, Swiss Franc, JPY). Recently, Bank of Japan Governor Ueda Kazuo’s hawkish remarks have pushed up interest rate hike expectations to 80%, with a projected increase to 0.75% on December 19 (a 30-year high), indicating that the yen may enter a rate hike cycle.

Meanwhile, Japan’s low-interest-rate policy has gradually adjusted, with yen fixed deposit annual interest rates reaching 1.5-1.8%, making it more competitive compared to TWD deposits.

Simple judgment:

• Travel use → Small cash amounts, fastest via foreign currency ATM
• Investment allocation → Large budgets, most cost-effective via online exchange or fixed deposits
• Emergency use → At airport counters, no other options

4 Methods to Exchange Yen and Their True Costs Breakdown

Suppose you want to exchange 50,000 TWD. Here are the latest cost comparisons (December 2025 data):

Method 1｜Foreign currency ATM withdrawal: fastest but limited

How to operate: Bring a chip-enabled bank card to a foreign currency ATM, withdraw yen cash anytime, 24 hours. Deducted from TWD account, cross-bank fee only 5 TWD.

Cost estimate (50,000 TWD):

• Exchange rate: about 4.85 (interbank rate, more favorable)
• Service fee: 5 TWD cross-bank fee
• Total loss: approximately 600-800 TWD

Advantages: Instant withdrawal, no appointment needed, 24/7 operation, lowest cross-bank fee
Disadvantages: Only about 200 locations nationwide, fixed denominations (1,000/5,000/10,000 yen), high demand peaks (e.g., airports) may sell out, daily withdrawal limit varies by bank (usually 100,000-150,000 TWD)

Practical tip: Foreign currency ATMs are suitable for small daily withdrawals, but don’t expect to buy large amounts at peak times. E.SUN Bank’s foreign currency ATM limit of 150,000 TWD/day is currently more flexible. After 2025 reforms, third-category digital accounts’ limits have dropped to 100,000 TWD/day; check your account type.

Method 2｜Online exchange + counter pickup: most cost-effective

How to operate: Log into bank websites (e.g., Taiwan Bank “Easy Purchase”, Mega Bank), fill in exchange amount, pick-up branch and date. After remittance, bring ID and transaction notification to the counter for cash pickup. Can reserve at airport branches, pick up before departure.

Cost estimate (50,000 TWD):

• Exchange rate: about 4.87-4.88 (spot selling, about 0.5% discount)
• Service fee: Taiwan Bank “Easy Purchase” via Taiwan Pay only 10 TWD, or free
• Total loss: approximately 300-500 TWD

Advantages: Best exchange rate, minimal fees, can specify airport pickup, suitable for pre-trip planning
Disadvantages: Need to book 1-3 days in advance, only at designated branches, pickup during bank hours

Practical tip: This is currently the most economical method. Taiwan Bank has 14 locations at Taoyuan Airport (including 2 24-hour branches). If you take an early flight, you can use the 24-hour counters.

Method 3｜Counter cash exchange: most traditional, highest cost

How to operate: Bring cash TWD directly to a bank or airport counter to exchange for yen cash. Easiest but most expensive.

Cost estimate (50,000 TWD):

• Exchange rate: 0.2060 TWD/yen (cash selling, 1-2% worse than spot)
• Service fee: some banks add 100-200 TWD
• Total loss: approximately 1,500-2,000 TWD

Current cash selling rates (12/10/2025):

Advantages: Safe, quick, full denominations, staff assistance
Disadvantages: Worst exchange rate, extra fees, limited by operating hours

Method 4｜Online exchange + foreign currency ATM withdrawal: hybrid approach

How to operate: First, open a foreign currency account via banking app, transfer TWD at spot rate into the yen account, then withdraw cash via ATM.

Cost estimate (50,000 TWD):

• Exchange rate: about 4.87-4.88 (spot, favorable)
• ATM withdrawal fee: about 100 TWD equivalent
• Total loss: approximately 500-1,000 TWD

Advantages: Flexible, can do in installments, average costs, 24/7 access, can also set up yen fixed deposits (annual interest 1.5-1.8%)
Disadvantages: Need to open a foreign currency account first, more complex process

Is it worthwhile to exchange yen now? Short-term and medium-term outlook

Short-term (1-3 months): The BOJ’s December rate hike to 0.75% is confirmed, USD/JPY may fluctuate around 155 short-term. If you’re risk-averse, consider staggered entry to avoid buying at the high.

Medium-term (3-12 months): Yen appreciation trend continues, narrowing US-Japan interest rate gap will suppress arbitrage trading, which is positive for the yen. Forecasts suggest yen exchange rates below 150, making the current 4.85 rate relatively reasonable.

Investment perspective: Yen as a safe-haven asset is suitable for hedging against Taiwan stock market volatility. Recommended allocation of yen assets to foreign currency holdings is 20-30%.

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

The next step after exchanging yen is crucial. Here are 4 advanced options suitable for small-scale beginners:

1. Yen fixed deposit → Most stable, E.SUN/Taiwan Bank foreign currency accounts, starting from 10,000 yen, annual interest 1.5-1.8%
2. Yen insurance policies → Medium-term holding, Cathay/Fubon savings insurance, guaranteed interest 2-3%
3. Yen ETFs (00675U, 00703) → Dollar-cost averaging, Yuanta 00675U tracks yen index, management fee 0.4% annually
4. Forex swing trading → USD/JPY or EUR/JPY, capturing 1-2% short-term fluctuations each time

Quick FAQs

Q. How much yen for 10,000 TWD?
Using Taiwan Bank spot rate 4.87, about 48,700 yen. Using cash selling rate 4.85, about 48,500 yen, difference of 200 yen (~40 TWD).

Q. What to bring for counter exchange?
ID + passport (if under 20, need parent accompaniment). For online booking, bring transaction notification. For large amounts (>100,000 TWD), banks may require source of funds declaration.

Q. Daily withdrawal limit at foreign currency ATMs?
New standards from October 2025:

• E.SUN Bank: 150,000 TWD/day for own card, 20,000 TWD/transaction for others
• E.SUN Bank: 50,000 TWD/transaction, 150,000 TWD/day
• CTBC Bank: 120,000 TWD/day

Use your own bank card to avoid 5 TWD cross-bank fee or split withdrawals over multiple days.

Conclusion｜Choose Your Currency Exchange Strategy

In summary: Yen has upgraded from a travel currency to an investment asset.

Recommended choices:

• Travelers: Online exchange + airport pickup, most cost-effective (loss 300-500 TWD)
• Investors: Online exchange + fixed deposits, earning 1.5-1.8% annually to offset exchange loss
• Emergency users: Foreign currency ATM for urgent needs, but don’t rely on high availability during peak times

Follow the principles of “staged exchange + don’t leave money idle,” so you can enjoy your trip and also add a layer of asset protection amid global market volatility.