2025 Yen Exchange Full Guide: 4 Major Methods Tested and Compared, Learn How to Exchange Most Economically in One Go

Why is the JPY exchange in 2025 a hot topic?

Entering 2025, the TWD to JPY exchange rate has reached 4.85, an appreciation of about 8.7% from the beginning of the year at 4.46. Behind this is not only the resurgence of Japanese tourism but also the changing role of the JPY in the global market.

From an investment perspective, the JPY is one of the world’s three major safe-haven currencies (the other two are USD and CHF), especially when geopolitical risks escalate, capital tends to flow into the JPY for safety. For example, during the Russia-Ukraine conflict in 2022, the JPY appreciated 8% in one week, enough to buffer a 10% decline in the stock market. For Taiwanese investors, exchanging for JPY is not only for travel but also to hedge against Taiwan stock market volatility.

Additionally, the Bank of Japan (BOJ) is on the verge of raising interest rates. Governor Ueda Kazuo recently made hawkish comments, boosting market expectations to 80%, with a rate hike of 0.25 bps to 0.75% at the December 19 meeting (a 30-year high), and Japanese bond yields have hit a 17-year high of 1.93%. USD/JPY has fallen from the early-year high of 160 to around 154.58 now, with short-term fluctuations possibly returning to 155, but medium to long-term forecasts suggest it will stay below 150.

TWD to JPY: Four cost-tested channels

Many think exchanging for JPY just involves going to the bank, but in reality, just the exchange rate difference can cost you several cups of bubble tea. Based on the latest 2025 data, we compare the costs of four currency exchange channels.

Method 1: In-person direct exchange (most traditional but highest cost)

Bring cash TWD to a bank branch or airport counter to exchange for JPY cash, using the “cash selling rate” (about 1-2% worse than the spot rate), which results in the highest overall cost.

For example, Taiwan Bank’s rate on December 10, 2025, at 9:18 AM was about 0.2060 TWD per JPY (roughly 4.85 JPY per TWD). Some banks charge fixed handling fees, e.g., E.SUN Bank NT$100 per transaction, Cathay United Bank NT$200 per transaction.

Suitable for: Urgent airport needs, elderly unfamiliar with online operations

Cost estimate: Exchanging NT$50,000 may result in a loss of NT$1,500–2,000

Method 2: Online exchange + ATM withdrawal (advanced users’ preferred)

Use online banking or app to convert TWD into JPY and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling). If cash is needed, withdraw at counters or foreign currency ATMs, but this incurs exchange spread handling fees (from NT$100).

This method is best for observing exchange rate trends, entering in batches at low points (e.g., when TWD/JPY is below 4.80). E.SUN Bank’s app offers this feature, starting from 10,000 JPY, completed online.

Advantages: 24/7 operation, allows averaging costs through batch purchases, better exchange rates, indirectly hedges TWD depreciation risk

Risks: Need to open a foreign currency account first; cash withdrawal fees apply (around NT$5–100)

Cost estimate: Exchanging NT$50,000 may result in a loss of NT$500–1,000

Method 3: Online currency settlement + designated pickup (best pre-departure plan)

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 pick up in person. Taiwan Bank and Mega International Bank offer this service, with appointment options at airport branches.

Taiwan Bank’s “Easy Purchase” online currency settlement is fee-free (only NT$10 if paid via Taiwan Pay), with about 0.5% better exchange rate. This is the best pre-departure reservation method, especially at Taoyuan Airport, which has 14 Taiwan Bank counters (2 open 24 hours).

Advantages: Better exchange rates, often no handling fee, can specify airport pickup, no need to carry cash on departure day

Limitations: Must book in advance (at least 1-3 days), pickup during bank hours only

Cost estimate: Exchanging NT$50,000 may result in a loss of NT$300–800

Method 4: Foreign currency ATM withdrawal (emergency first choice)

Use a chip-enabled financial card to withdraw JPY cash at foreign currency ATMs, supporting 24-hour and cross-bank operations. SinoPac Bank’s foreign currency ATMs allow withdrawal from NT$ accounts, with a daily limit of NT$150,000 and no exchange handling fee.

There are about 200 ATMs nationwide, but note that from the end of 2025, new regulations will tighten anti-fraud measures, with third-category digital accounts limited to NT$100,000 per day. During peak times (like airports), cash may run out, so plan ahead.

Advantages: Instant withdrawal, high flexibility, deducts from NT$ account, saving handling fees

Limitations: Limited locations and denominations (fixed at 1,000/5,000/10,000 JPY), cash may sell out during peak hours

Cost estimate: Exchanging NT$50,000 may result in a loss of NT$800–1,200

Overall comparison of the four channels

Conclusion: For travelers with a budget of NT$50,000–200,000, we especially recommend “online currency settlement + airport pickup” or “online exchange + foreign currency ATM” combo, which offers better rates and flexibility.

Is it worthwhile to exchange JPY now? Key data interpretation

In the second half of 2025, Taiwan’s foreign exchange demand increased by 25%, mainly driven by tourism recovery and hedging needs. The TWD to JPY rate has risen from 4.46 at the start of the year to 4.85 now, a 8.7% appreciation, meaning you can get more JPY for the same TWD—quite attractive for small-scale JPY investments, especially under TWD depreciation pressure.

However, whether it’s “cost-effective” depends on your operation method. JPY exchange rates are still quite volatile, with short-term risks of 2-5% due to global arbitrage unwinding. It’s advisable to enter gradually, avoiding all-in exchanges, to reduce risk and average costs.

Investment options after exchanging for JPY

Once you have JPY, don’t let your money sit idle without interest. Consider stable income or growth investments. Here are four common options suitable for small beginners:

1. JPY fixed deposit
Stable yield. Open an FX account with E.SUN or Taiwan Bank, deposit online. Minimum 10,000 JPY, annual interest rate 1.5–1.8%, with 3-6 months term. Suitable for short-term holding with capital safety.

2. JPY insurance policy
Medium-term holding. Cathay or Fubon Life offer JPY savings insurance, with guaranteed interest rates of 2–3%. Pay attention to policy duration and early termination clauses.

3. JPY ETFs
Growth-oriented. For example, Yuanta 00675U tracks the JPY index, and fractional shares can be bought via broker apps. Suitable for dollar-cost averaging and long-term appreciation outlook. Management fee about 0.4% annually.

4. JPY forex swing trading
Advanced strategy. Trade JPY currency pairs like USD/JPY or EUR/JPY on forex platforms. Benefits include two-way trading, 24-hour operation, and small capital requirements. Platforms like Mitrade offer zero commissions, low spreads, and various tools (stop-loss, take-profit, trailing stops, real-time signals), ideal for capturing exchange rate fluctuations.

Quick FAQs

Q. What’s the difference between cash rate and spot rate?

Cash rate (Cash Rate) is the rate banks offer for physical cash (notes/coins), used for personal travel exchange. It’s convenient for immediate cash delivery but usually 1-2% worse than the spot rate.

Spot rate (Spot Rate) is the exchange rate for transactions settled within two business days in the forex market, mainly for electronic transfers or non-cash settlements. It’s more favorable and close to international market prices.

Q. How much JPY can I get with NT$10,000?

Calculation: JPY amount = NT$ amount × current rate (TWD/JPY)

Using Taiwan Bank’s cash selling rate of about 4.85, NT$10,000 can get about 48,500 JPY. With the spot selling rate (~4.87), about 48,700 JPY, a difference of roughly 200 JPY.

Q. What do I need to bring for in-person exchange?

ID + passport. Foreigners need passport + residence permit. For company exchange, bring business registration documents. Under 20 need parental consent and ID; large amounts (over NT$100,000) may require source of funds declaration.

Q. Are there changes to foreign currency ATM withdrawal limits in 2025?

Yes. From October 2025, many banks will strengthen anti-fraud measures, with third-category digital accounts limited to NT$100,000–NT$150,000 per day. It’s recommended to diversify withdrawals or use your own bank card to avoid cross-bank fees (NT$5 per transaction). Cash may run out during peak hours, so plan ahead.

Summary

The JPY is no longer just for travel “pocket money” but also a hedging asset with small investment value. Whether you plan to travel to Japan next year or want to hedge against TWD depreciation by converting some funds into JPY, following the two principles of “batch exchange” and “don’t leave the money idle after exchange” can minimize costs and maximize returns.

We recommend beginners start with the simplest “Taiwan Bank online currency settlement + airport pickup” or “foreign currency ATM,” then transfer JPY into fixed deposits, ETFs, or even try forex swing trading based on needs. This way, you can enjoy more cost-effective travel and add a layer of protection during global market fluctuations. Remember, under the background of TWD and EUR volatility, diversifying into JPY and other hedging assets has become an increasingly popular choice among investors.