The enthusiasm for investing in Japanese Yen is heating up; here is the optimal way to exchange TWD for JPY

As of December 2025, the TWD/JPY exchange rate has reached around 4.85, making travel to Japan and JPY hedging strategies once again a focus. But the question is: what’s the truly cost-effective way to exchange for JPY? The cost differences across channels can be as high as NT$2000, and choosing the wrong method can result in a waste of money.

We have conducted an in-depth test of the mainstream exchange channels in Taiwan and analyzed the hidden costs of each method based on the latest data. Whether for short-term travel or long-term asset allocation, you can find the most suitable currency exchange plan.

## Why focus on JPY now?

The Japanese Yen is no longer just a tool for travel expenses. From a market perspective, JPY is one of the three major safe-haven currencies globally (alongside USD and CHF), characterized by stability and high risk-bearing capacity. When the Russia-Ukraine conflict erupted in 2022, the Yen appreciated by 8% within a week, while the stock market fell by 10%, demonstrating its safe-haven properties.

For Taiwanese investors, allocating some assets in JPY can effectively hedge against Taiwan stock market fluctuations. Additionally, the Bank of Japan is about to raise interest rates (Governor Ueda Kazuo is expected to hike to 0.75% at the December 19 meeting, a 30-year high), and the US-Japan interest rate differential is gradually narrowing, further increasing JPY’s relative attractiveness.

On a lifestyle level, Japan’s cash consumption culture remains strong (credit card penetration is only 60%), and purchasing agents, studying abroad, and travel all require cash JPY. In the second half of 2025, Taiwan’s demand for currency exchange increased by 25% compared to the same period last year, with JPY accounting for the largest share.

## The 4 most cost-effective ways to exchange for JPY

Many people think all banks have the same exchange rate, but in reality, just the difference between cash exchange rate and spot rate can incur a 1-2% cost difference. We analyze each to help you find the most economical option.

### Option 1: Bank or airport counter exchange

Carry NT$ cash directly to a bank branch or airport to exchange for JPY cash on the spot. This is the most traditional method, with the advantage of simplicity and immediate receipt, but it also has the highest cost.

According to Taiwan Bank’s rates on December 10, 2025, the cash selling rate is about NT$0.2060 per JPY (i.e., NT$1 exchanges for 4.85 JPY). Some banks also charge additional handling fees (e.g., E.SUN Bank NT$100 per transaction, Cathay United Bank NT$200 per transaction).

Calculating NT$50,000 exchange, this method results in a cost loss of NT$1500-2000. Suitable for urgent airport needs or users unfamiliar with online operations.

### Option 2: Online exchange + counter or ATM withdrawal

Use bank apps or online banking to convert NT$ into JPY and deposit into a foreign currency account (using the spot sell rate, about 1% better than cash selling rate), then withdraw cash at counters or foreign currency ATMs.

E.SUN Bank, Taishin Bank, and others support this service. Withdrawal incurs a currency conversion fee (about NT$100-NT$500), but overall costs are still lower than direct counter exchange. The advantage is the ability to stagger entries, observe exchange rate trends, and buy in multiple batches at low points (e.g., below 4.80), averaging the cost.

For NT$50,000 exchange, the total loss is about NT$500-NT$1000, suitable for users with foreign exchange investment experience. After exchanging to JPY, these foreign currency accounts can also be used for fixed deposits (current annual interest rate for JPY deposits is about 1.5%-1.8%).

### Option 3: Online currency settlement + airport pickup

No need to open a foreign currency account in advance. Fill in amount, currency, pickup branch, and date on the bank’s official website. After completing the online remittance, bring ID and transaction notification to the counter for pickup. Taiwan Bank’s “Easy Purchase” platform and Mega Bank offer this service.

Taiwan Bank’s online currency settlement is fee-free (NT$10 if paid via TaiwanPay), with an exchange rate advantage of about 0.5%. Especially suitable for travelers planning ahead, as Taiwan Bank has 14 pickup points at Taoyuan Airport (including 2 24-hour locations), allowing direct airport pickup.

For NT$50,000 exchange, the cost loss is about NT$300-NT$800. The only limitation is the need for prior reservation (at least 1-3 days), and pickup times are limited by bank hours; branches cannot modify the schedule.

### Option 4: 24-hour foreign currency ATM withdrawal

Use chips-enabled debit cards at foreign currency ATMs to withdraw JPY cash, operational 24/7, with only NT$5 cross-bank withdrawal fee. Cathay United Bank’s foreign currency ATMs have a daily withdrawal limit of NT$150,000 (about NT$300,000 JPY), with no currency exchange fee.

The downside is that there are only about 200 foreign currency ATMs nationwide, mostly in major cities, with fixed denominations (1000, 5000, 10000 JPY). During peak times (especially at airports or before holidays), cash may run out.

For NT$50,000 exchange, the cost loss is about NT$800-1200. Best suited for urgent needs or busy professionals who don’t have time to visit banks.

## Exchange rate trend analysis: Is now a good time to exchange?

The JPY performance in 2025 has been quite remarkable. At the start of the year, TWD/JPY was about 4.46, and by December it had risen to 4.85, an appreciation of 8.7% for the year. For Taiwanese investors looking to allocate assets in JPY, this already represents a significant exchange gain.

The US Federal Reserve has entered a rate-cut cycle, while the Bank of Japan is reversing to raise rates. This widening interest rate differential environment generally favors JPY. However, short-term volatility is unavoidable—market expectations suggest USD/JPY may fluctuate between 154-155, with a long-term forecast of falling below 150.

For portfolio management, staggered entry is recommended. Do not exchange all at once; instead, do 3-5 entries to avoid catching the short-term high. Also, monitor global geopolitical risks (Taiwan Strait, Middle East) and the possibility of arbitrage unwinding (which could cause JPY to fluctuate by 2-5%).

## After exchanging for JPY: let your money keep growing

Once you have JPY, it shouldn’t just sit idle. Choose suitable ways to grow your assets.

**JPY fixed deposit**: The most stable option. E.SUN Bank, Taiwan Bank, and others offer annual interest rates of about 1.5%-1.8%, with a minimum of 10,000 JPY.

**JPY insurance policies**: Medium-term holding. Cathay and Fubon Life offer foreign currency savings insurance with guaranteed rates of 2%-3%, combining protection with growth.

**JPY ETFs**: Growth-oriented allocation. Yuanta 00675U tracks the JPY index, with an annual management fee of 0.4%, available for fractional investment via brokerage apps.

**Forex trading**: Suitable for swing trading. USD/JPY and EUR/JPY are classic pairs, supporting both long and short positions, 24-hour trading, and low capital thresholds.

While JPY is a safe-haven asset, it also has two-way volatility risks. Choosing fixed deposits or ETFs can reduce risk, while forex trading is suitable for investors willing to actively manage risk.

## Multi-currency exchange references: HKD, MYR, and others

Besides JPY, many investors are also interested in exchanging HKD for MYR or other Asian currencies. The exchange logic is similar: compare cash rate vs. spot rate, choose the lowest-cost withdrawal method, and stagger entries to balance costs. The exchange margin for small currencies like HKD to MYR is often larger, requiring careful channel selection.

## Quick FAQs

**Q: How much is the difference between cash rate and spot rate?**
Cash rate is the rate banks offer for physical cash transactions, suitable for travel or on-site exchanges, usually 1-2% worse than the spot rate. The spot rate is the T+2 settlement rate in the forex market, closer to international market prices, suitable for electronic transfers.

**Q: How much JPY can NT$10,000 buy?**
Based on Taiwan Bank’s rate on December 10, 2025, NT$10,000 can buy about 48,500 JPY at a rate of 4.85. Using the spot rate of 4.87, it’s about 48,700 JPY, a difference of roughly 200 JPY (about NT$40).

**Q: What documents are needed for counter exchange?**
ID card + passport (foreigners need passport + residence permit). For online reservations, transaction notification is required. For large amounts (over NT$100,000), source of funds declaration may be needed.

**Q: Are there withdrawal limits at foreign currency ATMs?**
Different banks have different limits. CTBC Bank’s debit card limit is NT$120,000 per day, Taishin Bank NT$150,000, E.SUN Bank NT$150,000. Cross-bank limits depend on the issuing bank.

## Final advice

JPY has evolved from a simple “travel pocket money” to an asset with hedging and investment value. By practicing “staggered exchange” and “not leaving money idle after exchange,” you can minimize costs and maximize returns.

For beginners, start with Taiwan Bank’s online currency settlement + airport pickup or foreign currency ATM, then transfer to fixed deposits, ETFs, or swing trading based on your needs. This way, you can enjoy the convenience of travel and add a layer of risk buffer during global market fluctuations.