Japanese Yen Exchange Cheat Sheet: Save Thousands with the Right Method, and it's More Cost-Effective When Used with Foreign Currency Passbook

Today, December 10, 2025, the TWD to JPY exchange rate has surpassed the 4.85 threshold. For those planning to travel abroad or hedge assets, this moment is worth serious consideration.

Many people think exchanging yen is just a matter of visiting the bank counter, but they don’t realize that the exchange spread alone can eat up several hundred NT dollars. We tested the four most common yen exchange channels in Taiwan to help you find the truly most cost-effective method.

Is it worthwhile to exchange yen now? A quick look at the exchange rate trend

Why should the yen be closely watched? Besides travel purposes, it is also one of the world’s three major safe-haven currencies (alongside the US dollar and Swiss franc).

Impressive annual appreciation: From 4.46 at the beginning of 2025 to 4.85 now, a total appreciation of 8.7%. Compared to the continuous depreciation of the TWD, the yen clearly shows more resilience. Market observations indicate that Taiwan’s forex demand in the second half of the year increased by 25%, driven by the recovery in tourism and hedging needs.

Central bank policy shift: Bank of Japan Governor Ueda Kazuo recently signaled a hawkish stance, with market expectations of an 80% chance of interest rate hikes on the 19th of this month, possibly raising rates to 0.75% (a 30-year high). Meanwhile, the US has entered a rate-cutting cycle, reducing the US-Japan interest rate differential, which limits further yen depreciation. USD/JPY has fallen from a high of 160 at the start of the year to 154.58, with a short-term rebound to 155 possible, but medium-term forecasts suggest it will fall below 150.

Investment value assessment: The yen is suitable as a hedging tool for Taiwan stocks, but there is still a short-term arbitrage risk of closing positions, with expected volatility of 2-5%. Therefore, staggered entry is wiser than a one-time full exchange.

Comprehensive comparison of 4 exchange methods: let the data speak

Method 1: Bank counter cash exchange

Bring NT dollars cash directly to a bank branch or airport counter to request yen cash. This is the most traditional but also the most costly method.

Why are costs higher? Because it uses the “cash selling rate,” which is about 1-2% worse than the spot rate. For example, Taiwan Bank’s rate on December 10, 2025, is 0.2060 TWD/JPY (1 TWD = 4.85 JPY), but the spot rate has already reached 4.87, a difference of over 20 yen. Additionally, some banks charge fixed handling fees (e.g., E.SUN and Yongfeng each NT$100, Cathay United NT$200). Exchanging NT$50,000 results in a total cost of about NT$1,500-2,000.

Advantages: Safe, full denominations (1,000, 5,000, 10,000 yen options), on-site assistance from staff, suitable for those unfamiliar with online transactions or urgent needs.

Disadvantages: Significant unfavorable exchange rate, limited business hours (9:00-15:30 on weekdays), additional handling fees.

Suitable for: Elderly, small urgent needs (like at the airport), those distrustful of electronic transactions.

Method 2: Online exchange + counter/ATM withdrawal

Use bank app or online banking to exchange yen, with the “spot sell” rate (about 1% better than cash rate), resulting in smaller rate differences. For cash, you can choose counter withdrawal or foreign currency ATM withdrawal, but there will be withdrawal fees.

For example, E.SUN Bank offers better online exchange rates than in-branch, but in-branch cash withdrawals incur additional fees (interbank NT$5-100). Interestingly, many users choose to first convert online into a foreign currency deposit account, hold temporarily, and then withdraw or transfer to fixed deposits when rates are more favorable.

Advantages: 24/7 operation, supports staggered entries for average cost, better exchange rates, suitable for long-term planning.

Disadvantages: Need to open a foreign currency deposit account in advance, withdrawal incurs additional fees.

Suitable for: Investors experienced in forex, those with foreign currency accounts, or conservative clients wanting to combine with foreign currency fixed deposits.

Method 3: Online currency exchange + airport pickup (most convenient)

This is an innovative service introduced by banks in recent years. No need for a foreign currency deposit account; simply fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, present ID and transaction notice at the counter to collect. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service, with options to reserve at airport branches.

Cost optimization: Taiwan Bank’s online currency exchange is fee-free (if paid via Taiwan Pay, only NT$10), with a rate advantage of about 0.5%. Exchanging NT$50,000 costs about NT$300-800, making it a more economical choice. Plus, you can specify pickup at Taoyuan Airport (Taiwan Bank has 14 counters there, 2 open 24 hours). Collect before departure smoothly.

Advantages: Favorable rates, most banks waive or charge minimal fees, flexible timing (reservations possible), no banking hours restrictions (airport services extend into the night).

Disadvantages: Need to book 1-3 days in advance, once confirmed, changes are difficult, less flexible for last-minute plans.

Suitable for: Well-planned travelers needing to confirm cash amounts before departure.

Method 4: Foreign currency ATM cross-bank withdrawal

Use chip-enabled debit cards at foreign currency ATMs to withdraw yen cash, available 24/7. Withdrawing directly from a TWD account costs only NT$5 in cross-bank fees, with no forex handling fee, making it the lowest cost.

For example, Yongfeng Bank allows a daily withdrawal limit of NT$150,000. But note that locations are limited (about 200 nationwide), and during peak times (airports or tourist areas), cash may run out. Denominations are fixed at 1,000, 5,000, 10,000 yen, with no option to choose.

Advantages: Instant withdrawal, no waiting, 24/7 operation, low cost with NT$5 deduction, simple operation.

Disadvantages: Limited locations, denomination restrictions, often out of stock during peak times, unsuitable for large amounts.

Suitable for: Urgent, last-minute needs, those who cannot visit counters, willing to accept denomination limits.

Cost comparison table of 4 methods

Max savings tip: If your budget is NT$200,000-600,000, a mix of “online exchange + airport pickup” as main, plus foreign currency ATM as backup, can lower total costs to NT$300-500.

What documents are needed to exchange yen?

For Taiwanese at counters: ID card + passport (minors under 20 need parent accompaniment and consent form)

For foreigners: Passport + residence permit

For corporate exchange: Business registration documents

For large amounts: Over NT$100,000 requires a source of funds declaration form

Online exchange: Transaction notice required

After exchanging yen, how to use it? Foreign currency deposit + investment options

Don’t just leave the yen idle after exchange—use the foreign currency deposit feature to generate passive income.

Option 1: Foreign currency fixed deposit (conservative) Set up a fixed deposit in the foreign currency account, starting from as low as 10,000 yen, with current annual interest rates of 1.5-1.8%. For example, 50,000 yen yields about 900 yen annually (around NT$200), providing both hedging and interest income.

Option 2: Yen insurance policy (medium-term yield) Cathay and Fubon offer yen savings insurance with guaranteed interest rates of 2-3%, suitable for 2-5 year holding plans.

Option 3: Yen ETFs (growth) Track yen index ETFs (e.g., Yuanta 00675U, 00703), buy fractional shares via broker apps, and invest regularly. Management fee is 0.4% annually, suitable for long-term appreciation.

Option 4: Forex swing trading (aggressive) Trade USD/JPY or EUR/JPY on forex platforms to capture short-term fluctuations. Low-commission platforms offer stop-loss, take-profit, trailing stops, and 24-hour trading, but with higher risk.

Recommended portfolio: Conservative users allocate 70% to fixed deposits, 30% to ETFs; aggressive users split into 40% fixed deposits, 30% ETFs, 30% swing trading.

Quick Q&A

Q: How much is the cash rate difference from spot rate? Cash rate (0.2060) is the bank’s quote for physical bills, usually 1-2% worse than the spot rate (0.2058). Spot rate is used for electronic transfers, settled within 2 business days, and more aligned with international markets.

Q: How many yen can I get for NT$10,000 now? Using Taiwan Bank’s cash selling rate of 4.85, NT$10,000 ≈ 48,500 yen. Using spot rate 4.87, ≈ 48,700 yen. Actual amounts vary by bank and timing.

Q: What’s the daily withdrawal limit for foreign currency ATMs in Taiwan? CTBC supports up to NT$120,000, Taishin NT$150,000, E.SUN NT$150,000. But from October 2025, digital accounts’ limit drops to NT$100,000/day. It’s recommended to split withdrawals over multiple days.

Q: What if ATMs run out of cash during peak times? Advance 2-3 days before needed, especially at airports or tourist spots. If late, combine with counter cash or online exchange as backup.

Summary: Staggered exchange + diversified holdings is the key

The yen has evolved from a simple “travel pocket money” to an asset with hedging and investment value. Whether for next year’s Japan trip or to hedge against TWD depreciation, the key is to master the “staggered exchange + post-exchange allocation” principle.

Beginners are recommended to start with “Taiwan Bank online exchange + airport pickup,” then, based on funds and risk appetite, allocate yen into foreign currency deposits, ETF investments, or swing trading. This approach minimizes exchange costs, provides protection during global volatility, and benefits from yen appreciation. Not only can you enjoy cost-effective travel, but you can also make idle funds work for you.