2025 Yen Exchange Guide: Cost Analysis of 4 Major Channels and the Best Timing

Is the Yen Appreciating to a New High? Is Now a Good Time to Exchange?

As of December 10, 2025, the TWD to JPY exchange rate reached approximately 4.85, meaning 1 TWD can be exchanged for 4.85 JPY. Compared to 4.46 at the beginning of the year, the yen has appreciated by a total of 8.7%, which presents a significant exchange opportunity for those investing or traveling in Japan.

According to market data, Taiwan’s foreign currency exchange demand increased by 25% in the second half of the year, mainly driven by two factors: post-pandemic travel recovery and capital seeking safe-haven assets. As one of the world’s three major safe-haven currencies (along with the USD and Swiss Franc), the yen tends to rise counter to market turbulence, effectively hedging against Taiwan stock market fluctuations. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% within a week, while the stock market fell by 10% in the same period.

So, should you immediately exchange the full amount now? The answer is gradually enter the market. The yen is currently experiencing significant fluctuations. The US has entered a rate-cut cycle, providing support, but the Bank of Japan is on the verge of raising interest rates—recent hawkish comments from Governor Ueda have pushed market expectations to 80%, with a 0.25 percentage point hike to 0.75% expected at the December 19 meeting (a 30-year high). Japanese government bond yields have risen to a 17-year high of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58, with short-term fluctuations possibly returning to 155, but medium to long-term forecasts suggest it will stay below 150. For investors, closing arbitrage positions may involve short-term volatility of 2-5%, so gradual operations can better average costs.

Cost Comparison of 4 Major Exchange Channels

Many believe that exchanging yen only requires a trip to the bank, but the exchange rate difference alone can cost you hundreds of TWD. Below is a detailed analysis of the real costs of each channel:

Channel 1: In-Person Cash Exchange — The Most Traditional but Costly

Carrying cash to a bank branch or airport counter to exchange for yen is the most straightforward method. Banks offer “cash selling rates,” which are about 1-2% worse than the spot rate, plus possible handling fees, making the overall cost higher.

For example, Taiwan Bank’s rate on December 10, 2025, at 9:18 AM was a cash selling rate of 0.2060 (about 4.85 yen per TWD). Other banks like Mega, First, and Hua Nan offer slightly better rates, but E.SUN, E.SUN, and Cathay United Bank charge handling fees of 100-200 TWD per transaction. Exchanging 50,000 TWD in person results in a loss of about 1,500-2,000 TWD.

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

Channel 2: Online Currency Exchange & Transfer — Flexible but with Extra Fees

Using online banking or apps to convert TWD into JPY and deposit into a foreign currency account, using the “spot selling rate,” offers about 1% better than cash rates. If you need cash, you must go to a counter or use foreign currency ATMs, which may incur withdrawal fees (around 100 TWD). This method is suitable for those monitoring exchange rates and planning to buy in batches when the rate is low (e.g., TWD/JPY below 4.80).

Best suited for: Experienced forex investors planning long-term holdings or converting into JPY fixed deposits (currently with annual interest rates of 1.5-1.8%). Estimated cost loss for 50,000 TWD is about 500-1,000 TWD.

Channel 3: Online Pre-Order & Currency Exchange — Ideal Before Traveling Abroad

No need to open a foreign currency account. Simply fill in the currency, amount, pickup branch, and date on the bank’s official website. After completing the online transfer, bring your ID and transaction notification to pick up in person. Taiwan Bank’s “Easy Purchase” online currency exchange is fee-free (pay with Taiwan Pay, only 10 TWD), with about 0.5% better rates.

The biggest advantage is the ability to reserve airport branches for pickup—Taoyuan Airport has 14 Taiwan Bank outlets, including 2 open 24 hours, saving the hassle of last-minute exchanges before departure. Exchanging 50,000 TWD costs about 300-800 TWD less, making it the most economical option.

Best suited for: Planned travelers who want to pick up cash directly at the airport, with at least 1-3 days’ notice for reservations.

Channel 4: Foreign Currency ATM Withdrawal — 24/7 Flexibility

Using a chip-enabled bank card at foreign currency ATMs to withdraw yen cash, supporting 24-hour operation, with a cross-bank fee of only 5 TWD. E.SUN Bank’s foreign currency ATMs allow withdrawals from TWD accounts, with a daily limit of 150,000 TWD equivalent, and no currency exchange fee.

Disadvantages include limited locations (about 200 nationwide) and fixed denominations (1,000/5,000/10,000 yen). During peak times, cash may run out. It’s recommended not to wait until the last minute, especially at busy locations like airports. Exchanging 50,000 TWD may result in a loss of 800-1,200 TWD.

Best suited for: Readers who don’t have time to visit banks or need urgent cash.

Quick Cost Comparison Table of 4 Exchange Methods

Exchange Rates Compared to Other Currencies

Many people are torn between the yen and the RMB. The RMB currently exchanges at about 0.138 (roughly 7.25 RMB per TWD), but has been relatively weak recently, while the yen has strengthened due to the Bank of Japan’s rate hike expectations. From a hedging perspective, the yen is superior to the RMB; in terms of liquidity, the yen is better supported within Taiwan’s banking system. However, holding all three currencies—TWD, RMB, and JPY—can achieve better regional and currency diversification.

Post-Exchange Yen Appreciation Options

If you have already exchanged yen, don’t let the cash sit idle without earning interest. Consider the following four options:

1. Yen Fixed Deposit — The Most Stable Open an offshore currency account with E.SUN or Taiwan Bank, deposit yen online, with a minimum of 10,000 yen, offering an annual interest rate of 1.5-1.8%, with minimal risk.

2. Yen Insurance Policy — Medium-term Yield Cathay or Fubon life insurance’s yen savings policies, with guaranteed interest rates of 2-3%, suitable for 1-3 year medium-term allocations.

3. Yen ETFs — Growth Potential Yuanta 00675U tracking the yen index, with a management fee of 0.4%. Investors can buy fractional shares via brokerage apps for long-term appreciation.

4. Forex Trading in Yen — Swing Trading Trade USD/JPY or EUR/JPY directly on forex platforms, supporting long and short positions, 24-hour trading, with small capital to start swing strategies.

Common FAQs

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

Cash rate (Cash Rate) applies to physical cash buying and selling, with the advantage of immediate delivery but typically 1-2% worse than the spot rate. Spot rate (Spot Rate) is used for electronic transfers or non-cash settlement, closer to international market prices, but settlement takes T+2 days.

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

Using Taiwan Bank’s December 10 rate of 4.85, 10,000 TWD can buy about 48,500 yen. Using the spot rate of 4.87, it’s about 48,700 yen, a difference of roughly 200 yen (about 40 TWD).

Q: What ID do I need for in-person exchange?

Taiwanese citizens need their ID card and passport; foreigners need their passport and residence permit. If pre-booked online, also bring the transaction notification. Minors under 20 require a parent’s accompaniment; large exchanges over 100,000 TWD may require source of funds declaration.

Q: Is there a limit on foreign currency ATM withdrawals?

Limits vary by bank: CTBC Bank’s daily limit is 120,000 TWD equivalent, Taishin Bank’s is 150,000 TWD, E.SUN’s is 150,000 TWD (including debit card). It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Final Recommendations

The yen is no longer just for travel “pocket money”; it’s also an asset class with hedging and appreciation potential. Whether for next year’s trip, TWD depreciation hedging, or small investments, applying the principles of “gradual exchange + post-exchange appreciation” can minimize costs and maximize returns.

Beginners are advised to start with the simplest options—such as “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM”—and then, based on needs, move into fixed deposits, ETFs, or swing trading. This way, you not only save on travel costs but also add an extra layer of asset protection during global market turbulence.