Japanese Yen vs. Chinese Yuan vs. US Dollar, which foreign currency is the most cost-effective to exchange for Taiwanese Dollar? Complete 2025 Exchange Guide

In December 2025, the Taiwanese dollar against the Japanese yen reached a level of 4.85, an 8.7% increase compared to 4.46 at the beginning of the year. But did you know? During the same period, the trend of the Taiwanese dollar against the Chinese yuan and US dollar was completely different; choosing the wrong foreign currency can result in unnecessary exchange rate loss. This article summarizes the latest comparison of exchange costs for the three major foreign currencies: Japanese yen, Chinese yuan, and US dollar, along with real-world spreads from four tested yen exchange channels, helping you find the most cost-effective solution.

Quick Comparison: Yen vs Yuan vs USD

If you plan to exchange foreign currency for investment or savings, first understand that these three currencies have completely different characteristics:

Japanese Yen: Strong Hedging Attribute, Moderate Volatility

• One of the world’s three major safe-haven currencies (USD, Swiss Franc, Yen), Japan’s economy is stable with manageable debt
• During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a single week—while stocks fell 10%—showing its safe-haven power
• Current annual interest rate around 1.5-1.8% (fixed deposit), suitable for conservative investors
• Exchange rate fluctuation is moderate (average annual volatility 3-5%)

Chinese Yuan: Policy Sensitive, Large Short-term Fluctuations but Long-term Appreciation

• Policy-driven, easily affected by US-China relations and central bank actions
• Fluctuations against TWD are large (average 5-8% annually), high short-term operational risk
• Low interest rates (fixed deposit about 1-1.2%), mainly attractive due to appreciation expectations
• Suitable for investors optimistic about China’s long-term economic development

US Dollar: Global Benchmark, Most Liquid but Limited Upside

• International reserve currency, can be cashed globally at any time
• Current Federal Funds Rate around 4.25-4.5%, highest interest income
• Near 30-year high, short-term appreciation momentum weakening
• Suitable for investors seeking high yields and stability

4 Practical Ways to Exchange Yen in Taiwan (Cost Comparison)

Many think yen can only be exchanged at bank counters, but in reality, four channels’ spreads can cause you to pay or save an extra NT$2,000. Based on the latest rates on December 10, 2025, we estimate the actual cost of exchanging NT$50,000.

Option 1: Bank Counter Cash Exchange (Slowest, Highest Cost)

Bring cash NT$ to a bank or airport counter to buy yen cash. This traditional method uses the “cash selling rate,” which is 1-2% worse than the international spot rate, plus some banks charge handling fees.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is 1 yen = NT$0.2060 (i.e., NT$1 = 4.85 yen). NT$50,000 can buy about 242,500 yen. However, other banks like Mega, CTBC, E.SUN have slightly different rates, with a difference of about 200-300 yen (NT$40-60).

Adding some banks’ handling fees (NT$100-200 per transaction), total costs are NT$1,500-2,000.

Pros: Safe, immediate cash, denominations available (1,000/5,000/10,000 yen), staff assistance. Cons: Limited by bank hours (weekday 9:00-15:30), worst rates, handling fees may increase. Suitable for: seniors, first-time currency exchangers, urgent airport needs.

Option 2: Online Exchange + Counter Pickup (Moderate Cost, 24/7)

Use bank app or website to convert TWD to yen and deposit into a foreign currency account, using “spot selling rate” (about 1% better than cash rate). When needed, withdraw cash at counter or via foreign currency ATM.

For example, E.SUN Bank’s online spot rate is about 1 yen = NT$0.2067 (NT$1 ≈ 4.84 yen). NT$50,000 exchanges for about 242,100 yen. To withdraw cash, additional fees apply (NT$100-200), plus cross-bank withdrawal fee of NT$5.

Total cost around NT$500-1,000, saving about NT$50 compared to counter exchange.

Pros: 24/7 operation, allows batching for lower average cost, better rates than cash. Cons: Need to open a foreign currency account first, withdrawal fees apply, cross-bank fees. Suitable for: experienced forex users, regular foreign currency account holders, investors wanting to buy in stages.

Option 3: Online Currency Conversion + Airport Pickup (Most Recommended, Second-Lowest Cost)

No need for a foreign currency account. Fill in the amount and pickup branch online, then bring ID and transaction notice to the counter for pickup. Taiwan Bank and Mega Bank offer this service, with appointment options at airports.

Taiwan Bank’s “Easy Purchase” online currency conversion is fee-free (if paid via Taiwan Pay, only NT$10), with about 0.5% better rates. Daily limit can reach millions, suitable for large pre-trip reservations. Taoyuan Airport has 14 Taiwan Bank branches, 2 of which are 24-hour.

Total cost NT$300-800, very cost-effective.

Pros: Better rates, often no handling fee, airport pickup available, convenient for travel. Cons: Need to book in advance (1-3 days), pickup during bank hours. Suitable for: planned travelers, pre-trip preparation, those wanting cash at the airport.

Option 4: Foreign Currency ATM 24/7 Withdrawal (Fastest, Cash Limited)

Use chip-enabled bank card at foreign currency ATMs to withdraw yen cash, operational 24 hours. Deduct NT$5 cross-bank fee from TWD account, no additional exchange fee.

SinoPac’s foreign currency ATMs allow daily limit of NT$150,000 equivalent, no exchange fee. CTBC’s single withdrawal limit is NT$120,000 equivalent yen. However, only about 200+ ATMs nationwide, often out of cash during peak times (airports, MRT stations).

Total cost NT$800-1,200 mainly due to exchange rate spread.

Pros: Instant withdrawal, flexible, very low cross-bank fee, available 24/7. Cons: Limited locations, denominations fixed (1,000/5,000/10,000 yen), may run out of cash at peak times. Suitable for: urgent needs, no time for bank visits, willing to accept location limitations.

Cost Test Table for 4 Exchange Methods (Based on NT$50,000)

Sources: Bank websites, Wise rates, updated December 2025. Cost differences due to exchange rates, fees, cross-bank charges.

Is Yen Now a Good Deal? Short-term vs Long-term

Short-term (next 1-3 months)

Yen fluctuates within a range. The Bank of Japan Governor Ueda recently hawkish comments pushed rate hike expectations to 80%, with a 0.25bps increase to 0.75% on Dec 19 (30-year high). The US is in a rate cut cycle, narrowing the US-Japan interest differential from about 4.0% to 3.5%.

USD/JPY has fallen from 160 to 154.58 this year, possibly testing 155 short-term, but long-term forecast below 150. TWD/JPY may fluctuate between 4.80-4.90.

Advice: Avoid lump-sum exchange; stagger into 3-4 installments to prevent chasing highs.

Long-term (6-12 months)

As a safe-haven currency, yen benefits from rising global political risks (Taiwan Strait, Middle East). The Bank of Japan’s rate hike cycle has started, with fixed deposit rates rising (currently 1.5-1.8%, up 0.3% from early 2025). Japanese bond yields hit a 17-year high of 1.93%, increasing attractiveness.

In contrast, the yuan faces slowing Chinese economy and policy uncertainties; USD is high with limited upside.

Advice: Yen is suitable as a hedge in TWD asset portfolio; consider 30-50% allocation.

After Exchanging Yen, Don’t Let Your Money Sit Idle

Many hold onto yen after exchange, but yen deposits, ETFs, and insurance policies also offer good returns.

Option 1: Yen Fixed Deposit (Stable, 1.5-1.8%)

Start from NT$10,000 in E.SUN, Taiwan Bank, Mega Bank foreign currency accounts, transfer online into fixed deposit. Lowest risk, suitable for capital preservation. Current 1-year rate around 1.6%, about NT$160/year per NT$10,000.

Option 2: Yen Insurance (Medium-term, 2-3%)

Cathay, Fubon life insurance yen savings policies, with 2-3% interest, lock-in periods 3-6 years. Suitable for those preferring stable income without frequent management.

Option 3: Yen ETFs (Growth-oriented, 0.4% management fee)

Yuan Da 00675U, 00703, etc., yen index ETFs, can be bought as fractional shares via broker apps, for dollar-cost averaging. Past year gains ~12%, with potential for appreciation and income.

Option 4: Forex Swing Trading (Advanced, two-way)

Trade USD/JPY, EUR/JPY directly, capturing exchange rate swings. Pros: long/short positions, 24h trading, leverage. Cons: high risk, requires experience.

Common Questions About Yen Exchange

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

Cash rate is for physical banknotes, used for travel cash exchange. Spot rate is the foreign exchange market rate settled in 2 working days (T+2), used for electronic transfers and account-to-account. Cash rate is usually 1-2% worse due to logistics and liquidity risks.

Q: How to calculate how much yen I get for NT$50,000?

Formula: Yen = NT$ amount × current rate. Using December 10, 2025, Taiwan Bank cash rate of 4.85, NT$50,000 × 4.85 = 242,500 yen. Using online spot rate 4.87, NT$50,000 × 4.87 = 243,500 yen, difference about 1,000 yen (~NT$200).

Q: What to bring for counter exchange?

Local residents: ID + passport; foreigners: passport + residence permit. For online pre-booked exchange, bring transaction notice. Under 20 need guardian consent. Large amounts (>NT$100,000) may require source declaration.

Q: Are foreign currency ATM limits fixed?

Yes. For example, CTBC allows NT$120,000 equivalent per day, Taiwan Bank NT$150,000, E.SUN NT$150,000. Other banks’ limits vary, often lower. Post-2025 regulations, digital accounts’ daily limits are often NT$100,000. Consider splitting withdrawals or using your bank’s card to avoid cross-bank fees.

Q: Are the channels for RMB exchange the same?

Generally similar, but RMB has stricter annual quotas (e.g., US$50,000 equivalent). Large amounts require approval. RMB cash rates are usually 0.1-0.2% better than yen, but policy risks offset this advantage. Large RMB cash holdings are not recommended.

Conclusion: How to Choose Between Yen, Yuan, and USD

If your budget is NT$50,000-200,000, consider this allocation:

• Yen 50%: Safe hedge + mild appreciation, suitable for conservative base
• USD 30%: High yield + global liquidity, as backup funds
• Yuan 20%: Due to policy risks, only small testing amounts

For exchange methods, online currency conversion + airport pickup offers the best value—saving time and money while diversifying exchange risk. If time is tight, 24-hour foreign currency ATM is also a good option, despite slightly higher costs.

Regardless of whether you exchange for yen or other currencies, the key is to divide into stages and avoid all-in. This approach helps you better protect against global market swings and enjoy both spread and interest benefits.