Japanese Yen Exchange Secrets: NT$50,000 difference of NT$1,500, and the bank choice determines your cost

When it comes to exchanging foreign currency, most people think it’s just going to the bank counter, handing over money, and receiving currency—simple as that. But in reality, choosing the wrong method could cost you the price of a few more bubble teas, or even more.

Why Are Taiwanese People Exchanging Yen? It’s Not Just for Travel

Every year, over 3 million travelers visit Japan, and the demand for yen remains hot. But the reasons driving currency exchange go beyond just tourism.

Travel and Consumption: Most merchants in Tokyo, Osaka, and Hokkaido only accept cash (credit card penetration rate around 60%), so you need to exchange for yen beforehand to avoid losses. Purchasing agents and Japanese online shopping users also often need to have yen accounts ready.

Investment Perspective Is Even More Interesting: The Japanese yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). When stock markets fluctuate or geopolitical risks rise, funds flow into yen for hedging. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, while Taiwan’s stock index fell 10%, demonstrating a hedging effect. For Taiwanese investors, holding yen can buffer against Taiwan stock market risks.

Even more enticing is interest rate differential trading. The Bank of Japan maintains ultra-low interest rates (0.5%), while the Federal Reserve has raised rates to over 5%, creating a spread of more than 4%. Experienced investors borrow cheap yen, convert to high-yield USD for investment, and when risks increase, close positions to buy back yen, earning the interest rate difference.

4 Ways Taiwanese People Exchange Yen, with Surprising Cost Differences

As of December 10, 2025, the TWD to JPY rate is about 4.85, appreciating 8.7% over the past year. But exchanging 50,000 TWD through different methods can have cost differences exceeding NT$1,500. Let’s break them down one by one.

Method 1: Bank Counter Cash Exchange (Most Traditional but Most Expensive)

Bring cash TWD to a bank branch or airport and exchange directly for yen cash. The process is simple, but it uses the “cash selling rate” (1-2% worse than the international spot rate), plus possible service fees, making it the most costly.

Taiwan Bank cash selling rate is 0.2060 (1 TWD = 4.85 yen), no fee. Mega International Commercial Bank is 0.2062, also free. Cathay United Bank has a slightly worse rate at 0.2063 but charges NT$200 fee. E.SUN Bank charges NT$100 but offers a better rate at 0.2067.

Exchanging NT$50,000 at the counter results in a loss of about NT$1,500–2,000.

Suitable for: Elderly, those unfamiliar with online operations, or people who need small cash urgently at the airport.

Method 2: Online Currency Exchange + ATM or Counter Withdrawal (Moderate Cost, Flexible)

Use bank apps or online banking to convert TWD into yen and deposit into a foreign currency account, enjoying “spot selling rate” (about 1% better than cash rate). If you want to withdraw cash, go to a counter or foreign currency ATM, which incurs a spread fee (starting NT$100).

E.SUN Bank offers this, with a minimum deposit of 10,000 yen, annual interest rate 1.5-1.8%. After currency exchange, you can leave the funds in the account to earn interest instead of immediately withdrawing.

This method is suitable for observing exchange rate trends and entering in batches at low points. The cost for 50,000 TWD is about NT$500–1,000 less than counter exchange.

Advantages: 24-hour operation, allows averaging costs over time, better exchange rates.
Disadvantages: Need to open a foreign currency account first; withdrawal fees apply.

Method 3: Online Currency Settlement + Airport Pickup (Most Popular)

This is the best pre-departure reservation method. No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notice to the airport branch to pick up cash.

Taiwan Bank’s “Easy Purchase” offers free online currency settlement (pay via Taiwan Pay, only NT$10 fee), with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank counters, two of which operate 24 hours, making airport pickup very convenient.

For NT$50,000, the cost loss is only NT$300–800, making it one of the most cost-effective options.

Advantages: Better rates, often no service fee, designated airport pickup.
Disadvantages: Need to book 1-3 days in advance; pickup time limited by bank hours; branch changes not possible.

Method 4: Foreign Currency ATM 24/7 Withdrawal (Suitable for Last-Minute)

Use a chip-enabled debit card at foreign currency ATMs to withdraw yen, operating 24/7. About 200 ATMs nationwide. Withdraw directly from TWD account, with a cross-bank fee of NT$5.

SinoPac Bank foreign currency ATM has a daily limit of NT$150,000 equivalent, with no currency exchange fee. CTBC Bank, Taishin Bank, and others offer similar services.

The downside is fixed denominations (1,000, 5,000, 10,000 yen). During peak times (airports, weekends), cash may run out. Cost for NT$50,000 is about NT$800–1,200.

Advantages: Instant withdrawal, high flexibility, low cross-bank fee.
Disadvantages: Limited locations, denomination restrictions, possible cash shortages during peak times.

Cost and Scenario Comparison of the 4 Methods

Is It a Good Time to Exchange Yen Now? Timing and Risk Tips

Exchange Rate Status: TWD to JPY has risen from 4.46 at the start of the year to about 4.85 now, an 8.7% appreciation. For investors, the yen exchange gains are quite significant. In the second half of the year, Taiwan’s currency exchange demand increased by 25%, mainly driven by travel recovery and hedging needs.

Short-term Drivers: The Bank of Japan’s Governor Ueda Kazuo recently signaled a hawkish stance. The December 19 meeting is expected to raise interest rates to 0.75% (a 30-year high). Japanese bond yields hit a 17-year high of 1.93%. USD/JPY dropped from a high of 160 at the start of the year to 154.58; short-term may test 155, but medium to long-term downside exists.

Suggested Strategy: Don’t exchange all at once. Yen is a safe-haven asset but still has two-way volatility. Recommend entering in three batches:

• First batch: For immediate travel needs (use online settlement for airport pickup)
• Second batch: For investment allocation (wait for lows, ideally below 4.80)
• Third batch: For long-term hedging (distribute over years)

Don’t Let Your Yen Sit Idle After Exchange—Make It Work

Many people just hold onto the yen after exchanging, earning no interest. Here are some options suitable for small-scale beginners:

Yen Fixed Deposit (Conservative): E.SUN, Taiwan Bank, Mega Bank offer foreign currency accounts, deposit online. Minimum NT$10,000 yen, annual interest 1.5-1.8%. NT$50,000 yen yields NT$75–90 interest per year—equivalent to a cup of coffee.

Yen Insurance Policy (Mid-term Hold): Cathay, Fubon Life offer yen savings insurance with guaranteed interest rates of 2-3%, terms of 3-6 years. Suitable for medium-term planning.

Yen ETFs (Growth): Yuanta 00675U, Cathay 00703, tracking yen indices, can buy fractional shares via broker apps, suitable for dollar-cost averaging. Management fees around 0.4%, risk between fixed deposit and stocks.

Forex Trading (Swing Trading): Directly trade USD/JPY or EUR/JPY on forex platforms, with zero commission, 24-hour trading. Suitable for experienced investors.

Common Pitfalls and Practical Tips

Pitfall 1: Confusing cash rate with spot rate. Cash rate is used for physical cash transactions, usually worse; spot rate is for electronic transfers, more favorable but settled T+2.

Pitfall 2: Cash shortages during peak times. Chinese New Year, summer, and year-end are peak travel seasons in Japan, and foreign currency ATMs and bank cash may run out. Planning ahead is more cost-effective than last-minute scrambling.

Pitfall 3: Large exchanges may require declaration of funds. Amounts over NT$100,000 need to declare source of funds; don’t be intimidated by teller inquiries.

Practical Tips:

1. Confirm your departure date and choose the most suitable method accordingly.
2. Compare bank rates, prioritize “Taiwan Bank Easy Purchase” or “E.SUN Online Exchange.”
3. Don’t convert all into cash; diversify between accounts and cash to handle emergencies.
4. After exchanging, if you have idle yen, put it into a fixed deposit to earn interest rather than letting it sit idle.

Three Steps for Small-Scale Beginners to Exchange Currency

Step 1: Open a foreign currency account at Taiwan Bank or E.SUN Bank online (done in 10 minutes).

Step 2: Choose the right timing. Watch USD/JPY trends, aim to exchange at lows around 150–155.

Step 3: Decide on the purpose. If traveling soon, use online settlement for airport pickup; if purely investing, consider fixed deposits or ETFs.

The same logic applies to other currency exchanges, such as HKD to TWD—compare bank rates and fees to choose the most cost-effective method rather than just exchanging cash at counters.

Summary: Yen Is an Essential Asset

Yen is no longer just for travel pocket money but a strategic asset for hedging and potential gains. Whether for travel or investment, following the principles of “batch exchange” and “don’t let it sit idle” can minimize costs and maximize returns.

Beginners can start with “Taiwan Bank Easy Purchase + airport pickup” or “foreign currency ATM,” then shift into fixed deposits, ETFs, or forex swing trading based on needs. This not only makes travel more economical but also adds a layer of global asset allocation protection.