2025 Yen Exchange Complete Guide: Cost Analysis of Four Major Plans

Yen investment and travel demand are rising. How to exchange most advantageously?

As of December 2025, the TWD/JPY exchange rate has reached 4.85, up from 4.46 earlier this year, with an increase in Japanese travel and domestic currency exchange demand. Market observations show that in the second half of the year, Taiwan’s foreign currency exchange business grew by 25%, with the largest share in JPY. Many mistakenly think that currency exchange only requires a one-time visit to the bank counter, but in reality, differences in exchange rates across channels can cost you several thousand TWD—money that could buy you several meals in Tokyo.

This article thoroughly analyzes four JPY exchange options, compares rates across banks, and helps you find the best strategy suited to your budget and timing.

First, understand: What’s the difference between cash exchange rate and spot exchange rate?

Before diving into the four exchange methods, two key concepts must be understood.

Cash exchange rate is the rate offered by banks for physical banknotes, when exchanging cash on the spot. The cost is that the rate is usually 1-2% worse than the market rate. Suitable for travelers who need small amounts temporarily and want a simple process.

Spot exchange rate is the international price settled T+2 in the forex market, without holding physical cash, completed via electronic transfer. The rate is closer to the real market price. Suitable for investors or users with foreign currency accounts.

The difference may seem small, but when exchanging 50,000 TWD, it can amount to 200-300 JPY (about 40-60 TWD). For 200,000 TWD, the difference jumps to over 800 TWD.

Is now a good time to exchange JPY?

As of December 10, 2025, the TWD/JPY rate is about 4.85, an 8.7% appreciation from 4.46 at the start of the year. For travelers, this rate is reasonable; for investors, JPY is one of the three major safe-haven currencies globally. Under the continuous depreciation pressure on TWD, many institutional investors are adopting a phased entry strategy.

The Bank of Japan Governor Ueda Kazuo recently made hawkish comments, with market expectations of a 0.25 bps rate hike to 0.75% at the December 19 meeting (a 30-year high). Japanese bond yields have broken 1.93%. Short-term USD/JPY may fluctuate between 154-155, but medium to long-term forecasts tend to be below 150.

Investment tip: Do not exchange all at once. Phased entry and diversification are key to reducing exchange rate risk.

Four major JPY exchange options compared

Option 1: Bank counter cash purchase—most traditional but highest cost

Visit a bank or airport forex counter to exchange TWD cash for JPY cash. This is the most straightforward method but also the most expensive.

Banks set the “cash selling rate.” For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 TWD/JPY (1 TWD = 4.85 JPY). Some banks charge fixed handling fees, with E.SUN Bank and E.SUN Bank highest, starting at 100 TWD per transaction.

Cost estimate: Exchanging 50,000 TWD at the counter may result in a loss of 1,500-2,000 TWD.

Suitable for: Travelers unfamiliar with online operations or needing small amounts of cash urgently (e.g., at the airport).

Bank cash selling rates quick reference:

Data source: Official bank websites, updated 2025/12/10

Option 2: Online exchange + counter withdrawal—suitable for forex investors

Use bank app or online banking to convert TWD to foreign currency into your account (using spot rate, about 1% discount). If cash is needed, withdraw at counters or foreign currency ATMs, incurring a currency conversion fee (minimum 100 TWD).

Ideal for those with foreign currency accounts and familiar with investment operations. Supported by E.SUN Bank, Taiwan Bank, and CTBC Bank. Advantages include observing rate trends, buying in batches when TWD/JPY is low (e.g., below 4.80), to average costs. JPY accounts can also be transferred to fixed deposits (current annual interest 1.5-1.8%) or JPY ETFs.

Cost estimate: Online exchange of 50,000 TWD plus withdrawal may lose 500-1,000 TWD.

Suitable for: Investors with foreign currency accounts wanting to leverage rate movements for deposits or small investments.

Option 3: Online currency exchange + airport pickup—best for planned travelers

No need to open a foreign currency account in advance. Fill in currency, amount, pickup branch, and date on bank’s website. After remittance, bring ID and transaction notice to pick up at the counter. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service, with pickup at Taoyuan Airport by appointment.

Taiwan Bank’s online exchange is fee-free (pay only 10 TWD via TaiwanPay), with about 0.5% rate advantage. It’s the most convenient pre-departure booking method—Taoyuan Airport has 14 Taiwan Bank branches, 2 of which operate 24 hours, so you won’t miss your flight.

Cost estimate: Exchanging 50,000 TWD online and picking up at the airport may cost 300-800 TWD in losses.

Suitable for: Travelers with fixed travel dates who want to pick up cash directly at the airport.

Option 4: Foreign currency ATM withdrawal—emergency, no time for bank visits

Use chip-enabled debit/credit cards at foreign currency ATMs to withdraw JPY cash 24/7. Only about 5 TWD cross-bank fee per withdrawal from TWD account. Around 200 ATMs nationwide.

SFC Bank’s foreign currency ATMs have a daily withdrawal limit of 150,000 TWD, with no currency exchange fee. Be aware of withdrawal limits (e.g., E.SUN’s single limit of 50,000 TWD equivalent). During peak times, cash may run out.

Cost estimate: Withdrawing 50,000 TWD at ATMs may cost 800-1,200 TWD.

Suitable for: Busy professionals needing urgent cash without time for counters.

Complete comparison table of four options

Data source: Official bank websites, updated 2025/12/10

Best combined strategy for beginners: Mix of online exchange + foreign currency ATM

For a budget of 50,000–200,000 TWD, a mixed approach is recommended:

1. Large amount via online exchange: Reserve 3-5万 TWD in Taiwan Bank’s Easy Purchase 1-3 days before departure, enjoying 0.5% rate discount.
2. Small amount via ATM: After arriving, withdraw 1-2万 TWD as needed, anytime.

This method avoids carrying too much cash and spreads out exchange costs.

How to prevent your money from sitting idle after exchanging JPY?

Holding JPY without investing causes the money to lose value. Consider reallocating into these four options:

1. JPY fixed deposit
Supported by E.SUN Bank and Taiwan Bank, minimum 10,000 JPY, annual interest 1.5-1.8%. Suitable for conservative investors.

2. JPY savings insurance
Cathay Life, Fubon Life offer JPY policies with guaranteed interest rates of 2-3%, suitable for medium-term holding.

3. JPY ETFs
Yuanta 00675U tracks JPY exchange rate, with 0.4% annual management fee, available for fractional investing via broker apps. Suitable for regular investors.

4. Forex trading
Trade USD/JPY, EUR/JPY directly on forex platforms, with 24-hour long/short options. Suitable for experienced traders seeking swing trading.

While JPY is a safe-haven asset, it also faces two-way volatility. Rate hikes by the BOJ are bullish for JPY, but global arbitrage unwinding or geopolitical risks (Taiwan Strait, Middle East) may cause retracements. For investment, ETFs offer diversification; for short-term trading, forex is classic.

Common Q&A

Q. When TWD depreciates, is choosing a bank for USD/TWD exchange also important?
A. Absolutely. When TWD faces depreciation, compare not only JPY but also USD, CHF, and other safe-haven currencies. Differences in spot rates can reach 0.3-0.5%, significantly affecting large exchanges. It’s recommended to compare rates across banks for both USD and JPY to find the best deal.

Q. How much JPY can I get with 10,000 TWD?
A. Using Taiwan Bank’s rate on December 10, 2025, of 0.2060 (1 TWD = 4.85 JPY), 10,000 TWD yields about 48,500 JPY. With spot rate 4.87, about 48,700 JPY, a difference of 200 JPY (about 40 TWD).

Q. What ID do I need for counter exchange?
A. Citizens need ID card + passport; foreigners need passport + residence permit. For online booking, bring transaction notice. Minors under 20 need parent’s consent and ID. Large exchanges over 100,000 TWD may require source of funds declaration.

Q. Is there a daily withdrawal limit at foreign currency ATMs?
A. Yes. Different banks have different limits: CTBC 120,000 TWD/day; Taishin 150,000 TWD/day; E.SUN 150,000 TWD/day (including debit). Digital accounts may have lower limits (e.g., 100,000 TWD/day). It’s advisable to split withdrawals or use your own bank card to avoid cross-bank fees.

Q. Will ATMs run out of cash during peak times (e.g., airports)?
A. Yes. Especially during Lunar New Year, summer holidays, etc., foreign currency ATMs may run out. Plan ahead to avoid last-minute issues.

Summary

JPY has evolved from a “travel pocket money” to a “hedging asset.” Exchange choices are now part of investment decisions. By understanding the costs and processes of four options and timing entries with rate trends, you can minimize exchange costs. Beginners are recommended to start with Taiwan Bank’s online exchange + airport pickup or ATM, then explore deposits and ETFs as experience grows.

Remember: Phased exchange reduces risk; after exchanging, consider asset allocation—these principles save money on travel and boost investment efficiency.