## How to Exchange Yen? The Latest 4 Methods to Convert TWD to JPY in 2025 Compared and Tested

The TWD to JPY exchange rate recently dropped to 4.85, with some people planning to travel abroad and others eyeing investment opportunities. But did you know? Just choosing the wrong exchange method can cost you over 1,000. We tested four channels—bank counter, online currency exchange, online remittance, and foreign currency ATMs—and used real numbers to tell you which is the most cost-effective.

## Four Major Exchange Methods, Significantly Different Costs

**Option 1: Bank Counter Cash Exchange**

Bring cash TWD to a bank branch or airport to exchange for JPY directly. It's the simplest operation but the most expensive. Banks use the "cash selling rate," which is 1-2% worse than the spot rate, plus a handling fee.

For example, Taiwan Bank’s rate on December 10 was 0.2060 (equivalent to 4.85 JPY per TWD), while E.SUN Bank adds a 100 TWD fee per transaction. Exchanging 50,000 TWD would result in a loss of about 1,500-2,000.

However, this method is suitable for emergencies, such as realizing at the airport that you haven't exchanged enough yen or for those who don't want to spend time researching rates.

**Option 2: Online Currency Exchange via Bank App, then Withdraw at Counter or ATM**

Use the bank app to convert TWD to JPY and deposit into a foreign currency account. The rate used is the "spot selling rate," which is about 1% better than the cash rate. But if you want cash, you need to pay an additional withdrawal fee (starting at 100 TWD).

The advantage is 24-hour operation, allowing for staggered entry and lower average costs. If you just keep the funds in the account without withdrawing cash, there are no extra fees. The downside is you need to open a foreign currency account, which is slightly more complex.

Converting 50,000 TWD this way costs about 500-1,000, cheaper than counter exchange. Especially suitable for those with forex experience who want to do yen fixed deposits (currently 1.5-1.8% annual interest) or investments.

**Option 3: Online Remittance, Pick Up at Airport**

Book directly on the bank’s website, select currency, amount, pickup branch, and date—no need to open a foreign currency account. Taiwan Bank’s "Easy Purchase" system offers a 0.5% rate discount, and paying via TaiwanPay incurs only a 10 TWD handling fee.

Bring ID and transaction notification when picking up. Taipei and Taoyuan airports have counters. This is the smartest way before traveling—plan the date, place the order 1-3 days in advance, and pick up directly at the airport, saving time and money.

Estimated cost: 300-800 (for 50,000 TWD), the most cost-effective option.

**Option 4: Foreign Currency ATM, 24/7 Cash Withdrawal**

Use a bank card at a foreign currency ATM to withdraw yen, available at night and on holidays. Interbank withdrawals cost only 5 TWD fee. E.SUN Bank allows TWD account holders to withdraw without currency exchange fee, with a daily limit of 150,000 TWD.

However, there are only about 200 foreign currency ATMs nationwide, with fixed denominations (1,000/5,000/10,000 JPY). During peak hours, cash may run out. Cost is about 800-1,200, suitable for last-minute needs.

## Who Should Use Which Method? Quick Reference Table

| User Scenario | Recommended Method | Cost (for 50,000 TWD) | Reason |
|----------------|---------------------|----------------------|---------|
| Planning ahead before travel | Online remittance + airport pickup | 300-800 TWD | Better rates, direct airport pickup, low fees |
| Forex beginner, urgent need | Counter exchange | 1,500-2,000 TWD | Safe and simple, but costly |
| Have forex account, want investment | App online exchange | 500-1,000 TWD | Flexible, can do fixed deposits or ETFs |
| Urgent cash withdrawal, limited time | Foreign currency ATM | 800-1,200 TWD | 24/7, fast, but limited points |

## Is It Cost-Effective to Exchange Yen Now? Market Outlook

On December 10, TWD to JPY dropped to 4.85, appreciating 8.7% from the start of the year’s 4.46. The number of people exchanging yen increased by 25% in the second half, mainly due to the travel rebound and hedging needs.

But the rate is still volatile. The US has entered a rate-cutting cycle, while the Bank of Japan is preparing to raise rates—rumors suggest a 0.25 bps hike to 0.75% at the December 19 meeting (a 30-year high), which would support the yen. USD/JPY has fallen from 160 to 154.58 since early this year; short-term may rebound to 156-157, but medium to long-term forecasts suggest staying below 150.

For Taiwanese investors, the yen is one of the three major safe-haven currencies (alongside USD and CHF), good for hedging Taiwan stock market risks. But short-term arbitrage closing could cause 2-5% volatility. It’s advisable to exchange in batches rather than all at once.

Compared to that, those wanting to exchange Korean won should consider different rate cycles—KRW is strongly linked to USD, while JPY is more influenced by BOJ policies. The investment logic differs entirely.

## How to Make Yen Appreciate After Exchange?

Simply holding yen in your account yields zero return. After exchanging, consider these four options:

**Yen Fixed Deposit**: The most stable, open a foreign currency account with a minimum of 10,000 yen, annual interest 1.5-1.8%.

**Yen Insurance Policy**: Cathay and Fubon Life offer savings insurance with guaranteed 2-3% interest, locking in medium-term returns.

**Yen ETFs**: Yuanta 00675U tracks the yen index, with an annual management fee of 0.4%. You can buy fractional shares for dollar-cost averaging, suitable for risk diversification.

**Forex Swing Trading**: Trade USD/JPY or EUR/JPY on forex platforms, capturing rate fluctuations with both long and short positions, 24/7 trading.

## Common Questions from Beginners

**Q: What is the cash rate and spot rate?**

Cash rate is the price banks offer for physical bills (banknotes, coins) for on-site transactions—pay cash on the spot. It’s 1-2% worse than the market rate. Spot rate is the interbank foreign exchange market price, settled T+2, used for electronic transfers or account transfers, closer to international market. In short: cash rate is more expensive, spot rate is cheaper.

**Q: How much JPY can I get for 10,000 TWD?**

Using the formula: JPY amount = TWD amount × current rate. On December 10, Taiwan Bank’s cash rate was 4.85, so 10,000 TWD = 48,500 JPY. Using the spot rate 4.87, it’s 48,700 JPY—about 200 JPY (roughly TWD 40) difference.

**Q: Is there a limit on foreign currency ATM withdrawals?**

Yes. After the 2025 new rules, most banks set daily limits around 100,000-150,000 TWD (e.g., CTBC 120,000; Taishin 150,000; E.SUN 150,000). It’s recommended to withdraw in multiple transactions to avoid limits. During peak hours like airports, cash shortages are common, so plan ahead. Large exchanges over 100,000 TWD may require source of funds declaration.

## Summary: Two Key Strategies for Smart Yen Exchange

**1. Choose the right channels to save money**

Online remittance + airport pickup is currently the most cost-effective combo, saving about 70% of handling fees. Those with foreign currency accounts can use apps to exchange in batches; only go to counter in urgent cases.

**2. Don’t just leave yen idle**

Holding yen without interest is a loss. Immediately move funds into fixed deposits (1.5-1.8%), ETFs, or forex trading to generate extra income.

Under the pressure of TWD depreciation, yen is not just pocket money for travel but also an asset allocation option. Seize the right timing, choose the proper method, and act after exchange to minimize costs and maximize returns.