NTD foreign currency exchange guide: Japanese Yen, Malaysian Ringgit are the most cost-effective options

December 10, 2025 Forex Market Update The Taiwanese dollar has appreciated to 4.85 against the Japanese Yen, a total increase of 8.7% from 4.46 at the beginning of the year. During the same period, the TWD to Malaysian Ringgit is about 0.71, also showing a relative advantage. Facing diverse exchange needs, which currency and method will save the most costs? We have compiled a detailed comparison of four major channels to help you make the best decision within seconds.

Why Has Foreign Currency Investment Become a New Trend?

Travel and Lifestyle Demand Boost

Travel to Japan, Southeast Asia vacations, overseas study—going abroad has become part of daily life for Taiwanese. Cash payments in Japan still account for 40% (credit card penetration is only 60%), and cross-border online shopping and purchasing often require immediate currency exchange. The Malaysian Ringgit is also emerging due to growth in Kuala Lumpur tourism and the convenience of e-commerce platform payments.

Hedging and Asset Allocation Value

The Three Major Safe-Haven Currencies of the Yen
The Yen, along with the US dollar and Swiss franc, ranks as one of the world’s three major safe-haven currencies. During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a single week, successfully offsetting stock market declines. Taiwanese investors exchange Yen not only for travel but also to provide protection during Taiwan stock market volatility.

The Key to Interest Rate Arbitrage
Japan’s long-term ultra-low interest rate (0.5%) creates a “funding currency” characteristic, with a yield spread of 4.0% over the US dollar. Many institutions and individuals borrow low-interest Yen and invest in high-yield assets, then close positions and buy back Yen when risks increase. In contrast, Malaysia’s annual interest rate of about 2.5-3% suits conservative allocation but offers weaker hedging functions.

Practical Comparison of Four Major Channels for TWD to JPY Exchange

Option 1: 24-Hour Instant Withdrawal — Foreign Currency ATM

Operation Process
Insert chip-enabled financial card into a bank foreign currency ATM, select Yen, enter withdrawal amount. The system deducts from your TWD account and dispenses Yen cash immediately. No manual intervention needed, supports interbank transactions.

Cost Analysis
E.SUN Bank’s foreign currency ATM allows daily withdrawals up to TWD 150,000 equivalent. Interbank fee is only TWD 5, cheaper than traditional counter service. No additional currency exchange fee; directly deducted from TWD account.

Main Drawbacks

• Less than 200 nationwide locations, concentrated at airports and commercial districts
• Fixed denominations (1,000/5,000/10,000 Yen), cannot be fine-tuned
• Cash shortages during peak times (holidays, airports)
• Daily limit restricts large amounts; multiple withdrawals needed

Suitable For
Business travelers or workers who want quick cash without queues. Cost is about TWD 800-1,200 when exchanging around TWD 50,000.

Option 2: Bank Counter Cash Exchange — The Most Traditional but Most Expensive

Operation Process
Bring ID card and passport to a bank branch or airport counter, specify amount and currency, receive cash on the spot. Transparent process with multiple denomination options.

Exchange Rate Discrepancy Revealed
Taiwan Bank’s rate on December 10, 2025, for cash selling is 0.2060 TWD/Yen (equivalent to 1 TWD = 4.85 Yen). But this is among the best among banks—E.SUN Bank’s cash selling rate is 0.2067, meaning 1 TWD only gets 4.83 Yen.

The difference seems small, but for TWD 50,000 exchanged, you get 242,500 Yen. Choosing E.SUN costs TWD 50,500 (extra TWD 500); Taiwan Bank costs TWD 50,000. Plus, some banks charge TWD 100-200 per transaction, raising total costs to TWD 1,500-2,000.

Cash vs. Spot Rate Comparison Table

Suitable For
Travelers with urgent needs at the airport or those uncomfortable with online operations. But if you have time to plan, this method is the least cost-effective.

Option 3: Online Reservation for Pickup — The Best Choice Before Going Abroad

Full Process
Log into the bank’s website (Taiwan Bank’s “Easy Purchase” is most convenient), fill in the amount, select pickup branch and date. After online payment, bring ID and transaction notification to the designated branch to collect cash.

Cost Advantages
Taiwan Bank offers a 0.5% discount on exchange rates online, and paying via Taiwan Pay incurs only TWD 10 handling fee (credit card fees apply separately). Compared to counter cash exchange rates, saving TWD 300-500 on TWD 50,000.

Reservation Mechanism

• Must book 1-3 days in advance; no urgent requests
• Can choose from 14 locations at Taoyuan Airport (2 open 24 hours)
• Pickup only during bank hours
• Once branch is selected, cannot change (choose carefully)

Suitable For
Planners with confirmed travel schedules. Cost drops to TWD 300-800 for TWD 50,000, making it the most cost-effective. Especially useful for travelers departing during holidays who want to pick up cash directly at the airport.

Option 4: Online Transfer to Foreign Currency Account — Advanced Play for Investors

Operation Principle
No cash needed. Use online banking app to convert TWD to Yen and deposit into a foreign currency account. Use “spot sell rate” (1-2% better than cash rate), operable 24/7.

Optional Withdrawal

• No withdrawal: keep Yen in the account, enjoy Yen fixed deposit rates (1.5-1.8% p.a.)
• Partial withdrawal: withdraw cash via counter or ATM when needed, incurring additional FX spread and handling fees (from about TWD 100)
• Full retention: for investing in Yen ETFs or forex trading

Batch Entry Strategy
Observe exchange rate trends, convert continuously at lows (e.g., TWD/JPY below 4.80). Use dollar-cost averaging to avoid converting at high points.

Derivative Investment Options

Suitable For
Experienced forex investors willing to diversify. Cost control TWD 500-1,000, but with exchange rate risk.

Yen vs. Malaysian Ringgit: Exchange Cost Comparison

Some travelers consider Southeast Asian alternatives. Using TWD 50,000 as an example:

Yen Route

• Taiwan Bank counter cash: 242,500 Yen (loss TWD 1,800)
• Online exchange for pickup: 243,800 Yen (loss TWD 500)
• Foreign currency ATM: 242,700 Yen (loss TWD 900)

Ringgit Route

• Taiwan Bank counter cash: 70,400 MYR (loss TWD 2,100)
• Online exchange for pickup: 71,200 MYR (loss TWD 800)

Conclusion
The cash exchange rate difference for Ringgit is larger (TWD loss of about 2,100 vs. Yen’s TWD 1,800). Unless staying short-term or needing only small cash amounts, Yen remains the preferred choice. If visiting Japan and Malaysia, prioritize Yen mainly, with Ringgit as secondary.

Summary of Four Major Methods Cost Quick Reference

When Is the Best Time to Exchange Yen?

Exchange Rate Trend Analysis

Short-term Fluctuation Range
USD/JPY from a high of 160 at the start of the year to 154.58, showing a clear Yen appreciation trend. The Bank of Japan Governor Ueda’s hawkish stance has pushed up rate hike expectations to 0.75% at the December 19 meeting (a 30-year high). Japan’s bond yields hit a 17-year high of 1.93%.

Short to Mid-term Forecast

• Short-term (Jan-Feb): Possible retracement to 155-156, with 2-3% volatility
• Mid-term (Mar-Jun): Expect stabilization below 150, but watch for risk of profit-taking after rate hikes
• Long-term: Yen’s safe-haven status remains strong, but Taiwan’s central bank policies and USD trends are variables

Investor Batch Strategy Suggestions

Conservative
Enter 3-4 times, each with TWD 20,000-30,000, spaced 1-2 weeks apart. Reduce risk at each point, benefit from average cost.

Aggressive
Set buy points at 154.50 and 153.00, buy on dips. Keep 30% of uninvested funds reserved for lower levels.

Mixed
Immediately transfer 50% into online account (spot rate), observe January market for the rest. Can simultaneously lock in fixed deposit rates.

Post-Exchange Capital Allocation

“Don’t just convert and do nothing”—idle Yen equals missed earning opportunities.

Steady Income Path

Yen Fixed Deposit
Open accounts at E.SUN Bank or Taiwan Bank, transfer online. Minimum 10,000 Yen, annual interest 1.6-1.8%. TWD 500,000 fixed deposit for one year yields about 8,000 Yen (~TWD 1,600).

Yen Insurance Policy
Cathay, Fubon offer Yen-denominated savings insurance with guaranteed 2-3% interest over 15-20 years. Suitable for medium-term funds with added protection.

Growth Investment Path

Yen ETF Tracking
Yuan Da 00675U, Fubon 00703 track Yen strength/weakness. Monthly dividends, low management fee (0.4%), can buy fractional shares. Benefit from Yen appreciation and dividend income simultaneously.

Forex Swing Trading
Trade USD/JPY or EUR/JPY on forex platforms (e.g., Mitrade). Bidirectional, 24-hour trading, zero commission, zero spread, starting from USD 100. Suitable for experienced traders seeking short-term volatility.

Common Forex Exchange Myths Answered

Q. What’s the difference between cash rate and spot rate?
Cash rate applies to physical cash transactions; banks include handling and storage costs, usually 1-2% worse than spot. Spot rate is the electronic transfer, T+2 settlement, closer to real market value. Think of cash as courier fees included, spot as wholesale price.

Q. How much Yen can I get with TWD 10,000?
Formula: Yen amount = TWD amount × current rate. Using Taiwan Bank’s rate of 4.85, TWD 10,000 = 48,500 Yen (cash sell). Using spot sell rate 4.87, TWD 10,000 = 48,700 Yen, difference of 200 Yen (~TWD 40).

Q. What do I need to bring for counter exchange?
ID card + passport (for locals); passport + residence permit (for foreigners). If online reservation, bring transaction notification. Under 20 years old, parental consent required. For amounts over TWD 100,000, declare source of funds.

Q. What is the daily withdrawal limit at foreign currency ATMs?
As of October 2025, banks adjusted limits: CTBC 120,000, Taishin 150,000, E.SUN 150,000 per day. It’s recommended to plan withdrawals or use your bank’s card (no interbank fee of TWD 5). Avoid cash shortages during peak times.

Summary: Choosing the Right Method Saves Thousands

Yen is no longer just for travel; it’s also a hedging and investment asset. Whether for leisure or asset hedging, mastering “batch conversion + post-conversion appreciation” can reduce total costs from TWD 2,000 to TWD 300, improving efficiency by 85%.

Recommended Steps for Beginners

1. One week before travel: Use Taiwan Bank’s online exchange reservation for airport pickup (lowest cost)
2. For urgent needs: Use foreign currency ATM for 24-hour instant top-up (highest efficiency)
3. For investment: Transfer to foreign currency account for fixed deposit or ETF purchase (most stable returns)
4. Advanced: Batch entry, buy on dips, swing trading (maximizing gains)

Although exchanging TWD for Ringgit Malaysia is an alternative, the cash cost is higher and hedging weaker. Unless your itinerary prioritizes Malaysia, Yen remains the first choice. Seize the opportunity before the December rate hike to enjoy worry-free travel and add a layer of protection amid global market fluctuations.