Japanese Yen Exchange Guide | 4 Major Channels Tested and Compared, Save Up to 30% on Fees

In December 2025, the TWD to JPY exchange rate reached 4.85, hitting a new high for the year. Many investors are starting to think: Is it really worth exchanging for yen now? Instead of overthinking, it’s better to understand the true costs of different currency exchange channels—exchanging the same 50,000 TWD via different methods could cost you an extra 1,500 NT dollars if you choose the wrong one.

Why Are More and More Taiwanese People Exchanging for Yen?

The Japanese yen has long surpassed the category of a “travel currency.” In the financial markets, the yen is considered one of the world’s three major safe-haven currencies alongside the US dollar and Swiss franc, benefiting from Japan’s stable economy and low debt levels. When global risks rise (such as the Russia-Ukraine conflict in 2022), capital floods into the yen for safety, with the yen appreciating by up to 8% in a week, buffering stock market declines.

For Taiwanese investors, under the long-term depreciation pressure on the TWD, holding yen not only helps balance exchange risk but also hedges against Taiwan stock market volatility. Additionally, the Bank of Japan’s interest rate hike process (expected to rise to 0.75% on December 19, a 30-year high) offers stable returns of 1.5-1.8% on yen deposits and bonds.

From the demand side, in the second half of 2025, Taiwan’s foreign currency exchange demand grew by 25%, driven by three main factors:

• Travel recovery: Record-breaking visitor numbers from Japan to Taiwan, boosting outbound travel from Taiwan
• Hedging: Rising geopolitical risks worldwide, leading institutions and individuals to increase yen holdings
• Exchange gains: The yen has appreciated by 8.7% since the start of the year, making currency exchange profits quite substantial

The 4 Major Yen Exchange Channels in Taiwan: Cost and Experience Compared

Many people habitually exchange currency at bank counters but may not realize they could be paying 20-30% more in costs. Below is a detailed comparison of the exchange rates, fees, operation thresholds, and suitable scenarios for each channel.

Option 1: In-Person Cash Exchange｜Most Traditional but Most Expensive

Bring cash TWD directly to a bank or airport counter to receive yen in cash on the spot. It sounds safest, but it’s also the most costly.

Why is the rate worse? Banks use the “cash selling rate” instead of the market spot rate, with a margin of about 1-2%. For example, Taiwan Bank’s rate on December 10, 2025:

• Cash selling rate: 0.2060 TWD/JPY (equivalent to 1 TWD = 4.85 JPY)
• Using the spot rate (about 0.2065), you could get roughly 100 more yen for the same 50,000 NT dollars

Plus, some banks charge a counter fee (100-200 NT dollars), making the total loss reach 1,500-2,000 NT dollars.

Advantages: Safe and transparent, full denominations (1,000/5,000/10,000 yen), assistance from staff.
Disadvantages: Poor exchange rate, limited business hours (9:00-15:30 on weekdays), highest cost for last-minute needs.
Suitable for: Beginners unfamiliar with online operations, small urgent amounts (e.g., at the airport).

Option 2: Online Currency Exchange + Counter Pickup｜Flexible and Cost-Effective

Use bank app or online banking to convert TWD to yen and deposit into a foreign currency account, enjoying a “spot selling rate” (about 1% better than cash selling rate). When cash is needed, withdraw at the counter or via foreign currency ATM.

Main advantage: Can observe exchange rate trends in stages, buy low and sell high, averaging costs. For example, when TWD/JPY drops below 4.80, buy in to optimize overall gains.

Hidden costs: When withdrawing cash, a “spread fee” (difference between cash rate and spot rate) applies, starting around 100 NT. Cross-bank withdrawals incur an additional 5-100 NT fee.

Ideal for: Those experienced in forex trading, long-term yen investors. Many transfer the purchased yen directly into fixed deposit accounts earning 1.5-1.8% annual interest, earning about 1,500-1,800 NT per year on 100,000 yen.

Option 3: Online Currency Conversion + Airport Pickup｜Smartest Pre-Travel Preparation

This has become the most popular method recently. No need to open a foreign currency account beforehand. Just fill in currency, amount, designated pickup branch (including airports), and date on the bank’s website. After the bank completes the remittance, present ID and transaction notification to pick up at the counter.

Taiwan Bank’s “Easy Purchase” online currency exchange is especially convenient:

• Fee: Only 10 NT (via TaiwanPay) or free
• Exchange rate advantage: About 0.5%
• Airport branches: 14 Taiwan Bank branches at Taoyuan Airport, including 2 open 24 hours
• Reservation: Can specify pickup time at the airport to avoid queues

Cost for exchanging 50,000 NT: only 300-800 NT, 50-60% cheaper than counter exchange.

Timing tips: Book at least 1-3 days in advance to ensure cash availability. During peak travel seasons (e.g., Lunar New Year, summer), cash at the airport may be short.

Suitable for: Planned travelers, cost-conscious commuters.

Option 4: Foreign Currency ATM 24/7 Self-Service Pickup｜Emergency Tool

Use a chip-enabled financial card at foreign currency ATMs to withdraw yen cash directly, available 24/7. Deducts directly from your TWD account, with cross-bank fee only 5 NT (much lower than counter).

Example from Fubon Bank:

• Daily withdrawal limit: equivalent to NT$150,000
• Exchange fee: 0 NT
• Denominations: 1,000/5,000/10,000 yen fixed

Current status and limitations:

• Only about 200 ATMs nationwide, mainly in northern metropolitan areas
• Shortages during winter and peak seasons (e.g., Lunar New Year, autumn leaf viewing)
• End of 2025, Japan ATM withdrawal services will shift to international cards (Mastercard/Cirrus)

Suitable for: Those with no time to queue at banks, urgent cash needs. But don’t wait until the day before departure—risk of ATM shortages is high.

Quick Comparison Table of 4 Options (Cost & Experience)

Beginner Lazy Pack: For a budget of 50,000-200,000 NT, the most cost-effective combo is “Online currency exchange + airport pickup,” offering lowest costs and convenience.

Is Exchanging Yen Now Really Worth It? Market Timing Analysis

Current assessment: Since the start of the year, the yen has appreciated by 8.7%, making exchange gains significant.

On December 10, 2025, the TWD/JPY rate hit 4.85, compared to 4.46 at the start of the year, an 8.7% increase. In other words, if you exchanged 100,000 NT at the beginning of the year, the yen assets are now worth 8,700 NT more in TWD terms—before considering yen fixed deposit interest.

Exchange rate forecast:

• Short-term (1-3 months): The Bank of Japan’s rate hike (expected to reach 0.75% on December 19) is highly anticipated (about 80% market expectation). Japanese bond yields hit a 17-year high of 1.93%, supporting the yen. USD/JPY may fluctuate around 154-155.
• Mid to long-term (6-12 months): USD/JPY could fall below 150, with limited further yen appreciation, but its safe-haven appeal remains strong.

Investment suggestions:

1. Staged entry: Don’t exchange all at once; instead, buy in 3-5 installments at different times to reduce timing risk (dollar-cost averaging).
2. Avoid arbitrage risk: Currently, many are engaging in yen arbitrage (borrowing low-interest yen to invest in higher-yield USD). If risks increase, these trades may unwind collectively, potentially weakening the yen by 2-5% in the short term.
3. Monitor global events: Changes in Taiwan Strait or Middle East tensions can influence safe-haven flows; stay updated on news.

How to Avoid Losing on Interest After Exchanging Yen?

Many people simply keep cash yen at home or idle in accounts after exchanging, which is a missed opportunity. Here are four ways to grow your assets, suitable for small investors and beginners.

Option A: Yen Fixed Deposit｜Stable and Secure

Open a foreign currency account at E.SUN Bank or Taiwan Bank, transfer yen online into a fixed deposit.

• Minimum: 10,000 yen
• Annual interest rate: 1.5-1.8% (higher than TWD fixed deposit at 0.5%)
• Term options: 1 month, 3 months, 6 months, 1 year

Simple estimate: 100,000 yen fixed for 1 year yields 1,500-1,800 yen interest (about NT$300-360), risk-free.

Option B: Yen Savings Insurance｜Mid-term Growth

Cathay Life, Fubon Life, and others offer yen savings insurance with guaranteed 2-3% interest (better than fixed deposit).

• Minimum: 10-20万 yen
• Term: 3-5 years common
• Features: Guaranteed interest + dividends, plus insurance coverage

Disadvantage: lower liquidity (early withdrawal may lose some gains). Suitable for medium-term holdings.

Option C: Yen ETFs｜Growth on Market Waves

Buy fractional shares via brokerage apps tracking yen or Japanese assets. Popular ETFs include:

• Yuanta 00675U: Tracks yen index, management fee 0.4%
• 00703: Japanese REITs

Advantages: controlled risk, transparent costs. Risks include volatility, potential short-term loss of 3-5%, suitable for investors comfortable with fluctuations.

Option D: Forex Trading｜Wave Trading

Trade yen currency pairs directly on forex platforms, e.g., USD/JPY or EUR/JPY.

• Pros: Long and short positions, 24/7 trading, small capital needed, zero commission
• Cons: Highest risk, requires technical analysis and risk management skills

Suitable for experienced traders who can handle short-term volatility.

Other Popular Currency Pairs and Trends

Besides yen, many Taiwanese investors also watch other currencies:

CNY/HKD: Recently, the RMB faces depreciation pressure, with CNY/HKD fluctuating around 7.70-7.75. If bullish on HKD, consider staged exchange, but watch China’s economic policies.

USD/JPY: Currently around 154-155. If BOJ’s rate hike meets expectations, USD may weaken further below 150.

EUR/JPY: Affected by ECB policies, recent range 167-170. Less volatile than USD/JPY, suitable for risk-averse investors.

Quick FAQs

Q: What’s the difference between cash exchange rate and spot rate?
Cash rate is the rate banks use for physical cash transactions, suitable for in-person exchange, but with a 1-2% margin over the market spot rate. Spot rate is the international market rate settled within 2 business days (T+2), used for electronic transfers, offering better rates.

Q: How much yen can I get for 10,000 NT now?
Using Taiwan Bank’s cash selling rate of 0.2060 NT/JPY, 10,000 NT can buy about 48,500 yen. Using the spot rate (~0.2065), it’s about 48,700 yen—roughly 200 yen difference (~NT$40).

Q: What ID do I need for counter exchange?
Taiwanese citizens: ID card + passport. Foreigners: passport + residence permit. For online pre-order, also bring transaction notification. Minors under 20 need parental consent and ID. Large amounts (>100,000 NT) may require source declaration.

Q: Are there limits on foreign currency ATM withdrawals?
From late 2025, banks have adjusted limits:

• CTBC: up to NT$120,000 per transaction and per day
• Taishin: up to NT$150,000 per transaction and per day
• E.SUN: up to NT$50,000 per transaction, NT$150,000 per day

It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Final Tips

Yen is no longer just a travel “pocket money” but a financial asset with hedging and investment value. Given the current TWD depreciation pressure, many seasoned investors allocate about 30-40% of their foreign currency holdings to yen.

Whether for travel or asset allocation, the core principles are the same: staged exchange to reduce timing risk, don’t just convert and leave idle—ensure your funds grow. Beginners should start with “online currency exchange + airport pickup” for safety, then gradually explore fixed deposits, ETFs, or wave trading.

This way, you not only save on travel costs but also add a layer of protection in an era of rising global financial risks.