Japanese Yen Exchange Guide: 4 Key Decisions to Save 1,000 Yuan

December 10, 2025, the Taiwan dollar against the Japanese yen reached 4.85. This exchange rate level has appreciated over 8.7% since the beginning of the year, and more people are exchanging for yen. But did you know? Using different methods to exchange 50,000 TWD for yen could cost you 1,500 TWD more or less. We’ll tell you directly how to exchange yen most cost-effectively.

3 Questions to Ask Before Exchanging for Yen

Why exchange yen now?

The yen is not just “pocket money” for traveling abroad. From a practical perspective, traveling to Japan, shopping on behalf of others, studying abroad all require yen. But more importantly, from an investment standpoint: the yen is one of the world’s three major safe-haven currencies (the other two are USD and Swiss Franc).

When global stock markets decline, funds flow into the yen for preservation of value. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in one week, while stock markets fell 10%. For Taiwanese investors, holding some yen can hedge against Taiwan stock risks.

Plus, the Bank of Japan’s rate hike expectations are heating up—Governor Ueda recently expressed a hawkish stance, with an 80% chance of rate hikes at the December 19 meeting, which supports the yen. Short-term fluctuations (possibly 2-5%) are possible, but in the medium to long term, the yen should have support.

Is now a good time to exchange?

Simply put: Yes, but in installments.

The TWD/JPY rate has risen from 4.46 at the start of the year to 4.85 now, a significant increase. This means you can buy more yen now than at the beginning of the year, earning exchange gains compared to those who exchanged earlier. But exchange rates won’t rise in a straight line; staggered entry can average costs and reduce risks.

Who should exchange now?

• Travelers: Those planning to go abroad should exchange 1-2 weeks in advance for safety
• Hedgers: Investors wanting to hedge Taiwan stock market volatility
• Small-scale investors: Yen fixed deposits with annual interest rates of 1.5-1.8% are worth considering

4 Major Ways to Exchange Yen in Taiwan, with Varying Costs

1. Online currency exchange + airport pickup (lowest cost)

Use bank apps or official websites to reserve currency exchange, then pick up cash at designated airport branches. For example, Taiwan Bank’s “Easy Purchase” allows online exchange with no handling fee (pay via TaiwanPay for only 10 TWD), with a rate about 0.5% better than in-branch cash exchange.

Actual figures: Exchanging 50,000 TWD at the spot rate (about 4.87) yields 48,500 yen, with only a 300-500 TWD loss compared to in-branch cash rate.

Airport pickup is very convenient—Taoyuan Airport has 14 Taiwan Bank outlets, 2 of which operate 24 hours.

Advantages: Best exchange rate, lowest handling fee, can specify airport pickup
Disadvantages: Need to book 1-3 days in advance, pickup time limited by business hours
Suitable for: Those with plans, wanting to pick up directly at the airport before traveling

2. Foreign currency ATM withdrawal (fastest)

Bring a chip-enabled foreign currency card to a bank’s foreign currency ATM, and withdraw yen cash 24/7. Deducts from TWD account with only a 5 TWD interbank fee. Some banks like E.SUN Bank have a daily limit of 150,000 TWD and no currency exchange fee.

Actual figures: Cost for 50,000 TWD is about 800-1,200 TWD (mainly due to exchange rate difference).

The only issue is limited ATM locations—about 200 across Taiwan, with high demand at peak times (like airports), cash may run out. Plan ahead to avoid last-minute issues.

Advantages: 24/7 access, low interbank fee, direct deduction from TWD account
Disadvantages: Limited locations, fixed denominations (1,000/5,000/10,000 yen), possible cash shortages at peak times
Suitable for: Those who need quick, on-the-spot cash

3. Online exchange + foreign currency ATM withdrawal (preferred for investors)

First, use bank app to exchange TWD to yen at the spot rate and deposit into a foreign currency account, then withdraw cash via ATM. This allows staggered entry at low points (e.g., when TWD/JPY drops below 4.80), averaging costs.

After exchange, yen can stay in the foreign currency account earning interest (annual rate 1.5-1.8%) or be invested in yen fixed deposits or ETFs.

Actual figures: Cost for 50,000 TWD about 500-1,000 TWD
Advantages: Better exchange rate, ability to buy in installments, yen account can earn interest or be invested
Disadvantages: Need to open a foreign currency account first, withdrawal incurs additional fees
Suitable for: Those experienced in forex, wanting to hold yen long-term

4. Bank counter cash exchange (highest cost)

Bring cash TWD directly to a bank or airport counter to exchange for yen cash at the cash rate. The most traditional method, simple but costly.

Actual figures: 50,000 TWD at cash rate (about 0.206) yields about 48,000 yen, losing 1,500-2,000 TWD. Some banks charge an extra 100-200 TWD handling fee.

Advantages: Safe, full denominations, staff assistance available
Disadvantages: Worst exchange rate (1-2% below spot), possible handling fees, limited business hours (9:00-15:30 weekdays)
Suitable for: Those unfamiliar with online methods, needing small, urgent cash (e.g., at the airport)

Comparison Table of Bank Yen Exchange Costs

Data source: Official bank websites, updated December 10, 2025

What to Bring When Exchanging Yen at the Bank?

If you choose counter exchange, what documents are needed? Prepare these:

• General public: ID card + passport + cash TWD (or account deduction)
• Under 20: ID + parent’s consent + parent’s ID
• Foreigners: Passport + Taiwan residence permit
• Company exchange: Business registration + company seal
• Large amount (>100,000 TWD): May need to declare source of funds

If you pre-book online (online exchange), bring transaction notification when picking up.

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

Once you have yen, don’t just leave it there—consider these options to make it grow:

Yen fixed deposit: Most stable, annual interest 1.5-1.8%, open foreign currency accounts at E.SUN or Taiwan Bank, starting from 10,000 yen.

Yen ETF investment: To participate in currency appreciation, buy Yuanta 00675U (tracks yen index) via brokerage app, suitable for dollar-cost averaging. Management fee 0.4% annually.

Yen insurance policies: Yen savings insurance from insurance companies, guaranteed interest 2-3%, good for medium-term holding (3-5 years).

Forex trading: For short-term fluctuations, trade USD/JPY or EUR/JPY on forex platforms, but higher risk—small amounts recommended.

FAQs

Q: How much is the difference between cash rate and spot rate?
A: Usually 1-2%. Cash rate is the bank’s quote for physical cash, less favorable; spot rate is for electronic transfers, close to international market price. Basically, use cash rate for cash, which is more expensive; use spot rate for account transfers, which is cheaper.

Q: How much yen can I get for 10,000 TWD?
A: At the current 4.85 rate, about 48,500 yen. At spot rate 4.87, about 48,700 yen. Difference of about 200 yen (~40 TWD).

Q: What is the daily withdrawal limit at foreign currency ATMs?
A: After the new rules in October 2025, limits vary by bank: CTBC ~120,000 TWD/day, Taishin 150,000 TWD/day, E.SUN 50,000 TWD per transaction (~150,000 TWD/day including multiple transactions). It’s best to split withdrawals or use your own bank card to save on interbank fees.

Q: Can I still withdraw yen at Japanese ATMs?
A: By the end of 2025, only international cards (Mastercard/Cirrus) will be supported. Taiwan bank cards may no longer work; prepare cash or international credit cards before traveling.

Final Recommendations

Yen investment has entered a new era. It’s not just convenient for travel but also hedges risks and earns interest. By following the two principles of “staggered exchange + don’t leave money idle after exchanging,” you can lower costs and increase returns.

The simplest method for beginners is “Taiwan Bank online exchange + airport pickup,” which is lowest cost and easiest. Experienced investors can use “online exchange + foreign currency account fixed deposit,” holding and earning interest simultaneously.

Regardless of the method, the key is to plan ahead—don’t wait until the day before your trip to exchange. Yen is still relatively high but has investment value; staggered entry is the safest approach.