The most cost-effective way to exchange TWD to JPY: A comprehensive analysis of 4 major channels to understand Japan's exchange rate in one go

Is it worthwhile to buy Japanese Yen now? Check out this data first

As of December 10, 2025, the TWD to JPY exchange rate reached 4.85, nearly an 8.7% increase from the beginning of the year at 4.46. In other words, exchanging for Yen now already offers potential gains from the exchange rate appreciation. Plus, with the recent hawkish stance from Bank of Japan Governor Ueda Kazuo, market expectations are that the December 19 meeting will raise interest rates to 0.75% (a 30-year high), providing strong support for the Yen.

But this doesn’t mean you should exchange all at once—on the contrary, Yen is still fluctuating within a range, and staggered buying is the way to go.

Why should you exchange for Yen? It’s not just for travel

Most people think only about needing Yen for travel, but from a financial market perspective, Yen is much more valuable to hold than you might think:

Everyday Life

• Japan travel shopping mainly uses cash (credit card penetration is only 60%)
• Purchasing via proxy or online shopping in Japan requires direct Yen payments
• Students or working holidaymakers exchange currency in advance to avoid exchange rate risks

Investment

• Yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). Under the pressure of TWD depreciation, holding Yen acts as a hedge for assets
• The Bank of Japan’s rate hike cycle has begun, with Yen appreciating potential
• Yen fixed deposits offer annual interest rates of 1.5-1.8%, higher than TWD fixed deposits

Four ways to exchange TWD to Yen, with big cost differences

Many think the only option is going to a bank, but choosing the wrong method can cost an extra 1,000-2,000 NT dollars. Based on actual rates, for example, with 50,000 NT:

Method 1: Bank counter cash exchange—most convenient but most expensive

Bring NT cash directly to a bank or airport counter to buy Yen with the “cash selling rate,” which is usually 1-2% worse than the spot market rate, plus some banks charge handling fees.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 (1 NT = 4.85 Yen). If extra fees apply, the loss on 50,000 NT could be up to 1,500-2,000 NT.

Suitable for: Travelers unfamiliar with online operations or in urgent need (e.g., at the airport).

Method 2: Online currency exchange + foreign currency account—investment-oriented choice

Use bank app or online banking to convert NT to Yen at the “spot sell rate” (about 1% better than cash selling rate), deposit into a foreign currency account. When cash is needed, withdraw at the counter. The exchange rate is more favorable, costing about 500-1,000 NT for 50,000 NT.

This method suits long-term investors or fixed deposit holders. E.SUN Bank offers Yen fixed deposits with 1.6% annual interest, starting from 10,000 Yen.

Suitable for: Those experienced with forex, planning to invest in Yen fixed deposits or ETFs.

Method 3: Online currency exchange + airport pickup—most cost-effective before travel

No need for a foreign currency account. Simply book online via bank website, specify amount and pickup branch, then bring ID to pick up cash. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee, with about 0.5% favorable rate, costing only 300-800 NT.

Taoyuan Airport has 14 Taiwan Bank branches (2 open 24 hours). Book the day before departure, and you can pick up cash the next morning—making the process smoothest.

Suitable for: Travelers planning to go abroad and want to withdraw cash directly at the airport.

Method 4: Foreign currency ATM withdrawal—emergency 24-hour option

Use a bank card at a foreign currency ATM to withdraw Yen cash. Open 24 hours, cross-bank withdrawals cost only 5 NT. Fubon Bank’s foreign currency ATM allows up to 150,000 NT equivalent per day. Cost is about 800-1,200 NT.

Disadvantages: Only about 200 foreign currency ATMs nationwide; during peak times (especially at airports), cash may run out. Plan ahead.

Suitable for: Urgent needs, busy professionals without time for counter visits.

Comparison table of the 4 methods

Conclusion: If budget allows and you have time, choose “online exchange + airport pickup”; for urgent needs, go with “foreign currency ATM”; for phased investment, “online exchange” to build a foreign currency account.

Yen exchange rate trend and investment opportunities

Current situation

Yen has fallen from a high of 160 at the start of the year to 154.58, mainly due to the US rate cut cycle. But the BOJ is poised to hike rates, with expectations of a 0.25 basis point increase to 0.75% on December 19. Japanese government bonds’ yields have hit a 17-year high of 1.93%, providing strong support for Yen.

International banks forecast short-term volatility around 155, but medium to long-term targets are below 150, meaning Yen still has room to appreciate.

What should investors do

If exchanging Yen for hedging (to offset Taiwan stock risks), staggered entry is reasonable; but watch out for arbitrage closing risks, which could cause short-term fluctuations of 2-5%.

The safest approach:

• Divide into 3-4 batches to lower costs
• Use online exchange for part of the amount, supplement with ATM withdrawals in emergencies
• After exchange, consider investing in Yen fixed deposits (1.5-1.8% annual) or Yen ETFs (e.g., Yuanta 00675U, with 0.4% annual management fee)

Next steps after exchanging Yen: make your money work for you

Don’t let your Yen sit idle in the account—consider these options:

1. Yen Fixed Deposit Most stable, open foreign currency accounts at E.SUN or Taiwan Bank, deposit online, with 1.5-1.8% annual interest, starting from 10,000 Yen.

2. Yen Insurance Savings Cathay or Fubon life’s Yen savings insurance, with guaranteed 2-3% interest, suitable for mid-term holding.

3. Yen ETFs Yuanta 00675U tracks Yen index, can buy fractional shares, suitable for dollar-cost averaging, with 0.4% annual management fee for diversification.

4. Yen Forex Trading Short-term trading of USD/JPY or EUR/JPY, with both long and short options, 24-hour trading, suitable for experienced investors.

Quick FAQs

Q: What’s the difference between cash exchange rate and spot rate? Cash exchange rate is the buy/sell rate banks offer for physical cash, allowing immediate cash pickup but with a 1-2% spread over the market rate. Spot rate is for electronic transfers settled in T+2, closer to international market prices.

Q: How much Yen for 10,000 NT? Using December 10 Taiwan Bank cash selling rate of 4.85, about 48,500 Yen; at the spot rate of 4.87, about 48,700 Yen—difference less than 50 Yen.

Q: What to bring for counter exchange? ID + passport (or residence permit). If booked online, also bring transaction confirmation. Under 20 needs parental accompaniment; amounts over 100,000 NT may require source of funds declaration.

Q: What’s the daily limit for foreign currency ATM withdrawal? Varies by bank. CTBC: 120,000 NT/day; Taishin: 150,000 NT/day; E.SUN: 150,000 NT/day. Post-2025, many banks have tightened anti-fraud measures, reducing limits below 100,000 NT. Use your own bank card to avoid cross-bank fees.

Final advice

Yen is no longer just for travel “pocket money”—it’s a valuable asset for hedging and investment. Under TWD depreciation pressure, holding Yen can protect assets; with Yen appreciation, you can also profit from exchange rate gains.

For beginners, the simplest approach: use Taiwan Bank’s online exchange to buy your first batch, deposit into Yen fixed deposit; use ATM withdrawals for emergencies; after familiarization, try Yen ETFs or forex swing trading.

This way, not only can you enjoy more cost-effective travel, but also add a layer of protection amid global market volatility.