Japanese Yen Exchange Guide: NT$50,000 Makes a Big Difference, Breakdown of 4 Costing Options

Is it cost-effective to exchange for Japanese Yen now? The answer is: it depends on how you exchange.

The TWD to JPY exchange rate has reached 4.85 (as of December 10, 2025), an 8.7% appreciation over the past year, up from 4.46 at the beginning of the year. In comparison, the HKD to TWD exchange rate remains relatively stable, with a clear difference in appreciation levels between the two. If you exchange 50,000 TWD at a bank counter, you might spend about 2,000 TWD more than online currency exchange. However, with the right method, the same 50,000 TWD can save you between 300 and 1,500 TWD. The maximum difference is enough to buy 20 cups of bubble tea. This article aims to help you save that money.

Why is now a good time to exchange for Japanese Yen?

Travel demand is rebounding
Travel to Tokyo, Osaka, and Hokkaido still primarily relies on cash (credit card penetration is only 60%). Japanese drugstores and anime merchandise purchases also almost always require direct yen payments.

Hedging function enhancement
The yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). It maintains a low-interest rate policy (0.5%) and attracts capital inflows during market turbulence. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while the stock market fell 10%—for Taiwanese investors, exchanging for yen is like hedging against Taiwan stocks.

Interest rate hike expectations emerge
The Bank of Japan Governor Ueda Kazuo recently made hawkish comments, pushing the rate hike expectation to 80%. A 0.25 basis point increase to 0.75% is expected on December 19 (a 30-year high). USD/JPY has fallen from a high of 160 to 154.58; in the short term, it may rebound to 155, but medium to long-term forecasts suggest below 150. Investors optimistic about the yen should consider phased purchases now.

Four ways to exchange for yen, with significant cost differences

Based on 50,000 TWD, here are the actual costs for each method:

Method 1: Bank Counter Exchange (most traditional, highest cost)

Bring cash TWD to a bank or airport counter to exchange for yen notes. Uses the “cash selling rate” (about 1-2% worse than the spot rate), with some banks charging additional handling fees.

Example: Taiwan Bank: As of December 10, 2025, the cash selling rate is 0.2060 (1 TWD = 4.85 JPY). 50,000 TWD can be exchanged for approximately 242,500 JPY.

Bank exchange rates and fees comparison (Source: bank websites 2025/12/10):

Estimated cost: Loss of 1,500–2,000 TWD
Suitable for: Urgent airport needs, unfamiliar with online exchange

Method 2: Online currency exchange + cash pickup (moderate cost)

Use bank app or website to convert TWD to JPY and deposit into a foreign currency account (using the spot rate, about 1% better than cash). Then, pick up cash at a branch or ATM.

Example: E.SUN Bank: After online exchange, withdraw cash with a handling fee equal to the difference between spot and cash rates, starting at 100 TWD.

Advantage: allows phased entry to observe exchange rate trends. Buying at low points (e.g., TWD/JPY below 4.80) can average the cost.

Estimated cost: Loss of 500–1,000 TWD
Suitable for: Those experienced with forex, planning to invest in yen deposits

Method 3: Online currency settlement (recommended for beginners)

No need to open a foreign currency account. Simply fill in the amount, branch, and date on the bank’s website, then complete the transfer. Bring ID and transaction notification to the counter to receive cash. Taiwan Bank and Mega Bank offer this service, with appointment options at airport branches.

Taiwan Bank “Easy Purchase”: No handling fee (Taiwan Pay payment costs only 10 TWD), with about 0.5% exchange rate advantage. Taoyuan Airport has 14 Taiwan Bank branches, 2 of which operate 24 hours.

Estimated cost: Loss of 300–800 TWD
Suitable for: Travelers with a planned schedule, wanting to withdraw at the airport

Method 4: Foreign currency ATMs (most flexible)

Use a chip-enabled debit card at foreign currency ATMs to withdraw yen cash 24/7. Cross-bank withdrawals cost only 5 TWD per transaction (deducted directly from TWD account).

SinoPac Bank Foreign Currency ATM: Withdraw yen from TWD account, with a daily limit of 150,000 TWD, no currency exchange fee. There are about 200 locations nationwide, but cash may run out during peak times like at airports.

Estimated cost: Loss of 800–1,200 TWD
Suitable for: Those with no time for counter exchange, needing quick cash

Complete comparison of the 4 methods

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

If you convert 50,000 TWD to 242,500 JPY and leave it idle, it earns zero interest. Here are four ways to let your yen continue to grow:

1. Yen fixed deposit
Most stable. Open an account with E.SUN or Taiwan Bank online, with a minimum of 10,000 yen, offering annual interest rates of 1.5–1.8%. 242,500 yen yields about 3,600–4,400 yen annually.

2. Yen insurance policy
Medium-term holding. Cathay or Fubon life insurance savings policies with guaranteed interest rates of 2–3%. Slightly higher than deposits but less liquid.

3. Yen ETFs (00675U, 00703)
Growth-oriented. Yuanta 00675U tracks the yen index, can be bought as fractional shares via brokerage apps with an annual management fee of 0.4%. Suitable for those optimistic about long-term yen appreciation.

4. Forex trading USD/JPY or EUR/JPY
Direct currency trading with volatility, both long and short positions, 24-hour trading. Small capital needed to operate, capturing exchange rate swings. Platforms like Mitrade support zero-commission, low spreads, and stop-loss/take-profit tools.

Quick FAQs

Q: How much is the difference between cash rate and spot rate?
Cash rate is used for physical cash transactions, usually 1–2% worse than the spot rate. The spot rate is the interbank T+2 settlement price, closer to the international market, but requires waiting for settlement.

Q: How much yen can 10,000 TWD buy?
Based on December 10, 2025, cash selling rate of 4.85, 10,000 TWD ≈ 48,500 JPY. Using the spot rate (~4.87), about 48,700 JPY.

Q: What to bring for counter exchange?
ID + passport (for locals); passport + residence permit (for foreigners); business registration for companies. For online reservations, also bring transaction notification. For amounts over 100,000 TWD, may need to declare source of funds.

Q: Is there a limit for foreign currency ATM withdrawals?
As of October 2025, many banks have set daily limits of 100,000–150,000 TWD for their own cards. Use your bank’s card to avoid cross-bank fees (5 TWD per transaction). During peak times like at airports, cash may run out quickly, so plan ahead.

Summary

The yen is no longer just for travel pocket money; it also serves as a hedging asset and small investment. By following the two principles of “phased exchange” and “exchanging all at once for allocation,” you can lower costs and increase returns.

Beginners are advised to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then shift into deposits, ETFs, or forex trading based on needs. This way, you can enjoy more cost-effective trips abroad and use yen to hedge against Taiwan stocks during global market turbulence, adding an extra layer of protection.