Foreign currency exchange showdown: How to exchange Japanese Yen and Canadian Dollar with the least loss?

Under the pressure of TWD depreciation, exchanging foreign currency has become a necessary skill for many. But do you know? Choosing the wrong method to exchange 50,000 yuan could cost you an extra 1,500-2,000 yuan—equivalent to the price of a premium bubble tea.

As of December 10, 2025, the TWD to JPY is about 4.85, and to CAD about 1.68, both at relatively high levels. This article delves into Taiwan’s mainstream foreign currency exchange channels and how to get the most cost-effective exchange.

Why Exchange Foreign Currency? Not Just for Travel

When it comes to exchanging foreign currency, many people’s first reaction is “cash for traveling abroad.” But the value of foreign currency is far beyond imagination.

Everyday essentials, such as travel in Japan or vacations in Canada, require cash. In scenarios like shopping agents, online shopping, studying abroad, paying directly in local currency is often cheaper.

Investment and financial management: JPY is one of the world’s three major safe-haven currencies (along with USD and CHF). When Taiwan’s economy is uncertain, holding JPY is like adding insurance to your assets. CAD, as a commodity currency linked to energy and minerals, has a completely different logic for hedging inflation.

Especially with the imminent rate hike by the Bank of Japan (Governor Ueda’s hawkish stance is clear), the JPY may surge in the short term; CAD is affected by the US-Canada interest rate differential and has larger volatility. Smart investors diversify rather than concentrate on a single currency.

4 Major Foreign Currency Exchange Channels Revealed

Method 1: Bank Counter Cash Exchange—Most Secure but Most Expensive

Bring TWD cash directly to a bank or airport counter to exchange for foreign currency cash. The process is simple, but using the “cash selling rate” is 1-2% worse than the international spot rate, plus possible handling fees, making it the most costly.

For example, Taiwan banks as of December 10, 2025, have a cash selling rate of about 0.2060 (1 TWD = 4.85 JPY), plus fixed fees (e.g., E.SUN, E.SUN Bank each charge 100 TWD). Exchanging 50,000 TWD results in a loss of about 1,500-2,000 TWD.

Advantages: Safe, immediate, denominations available (1000, 5000, 10000 JPY).
Disadvantages: Worst exchange rate, limited to bank hours, cumulative fees.
Who should use: Those unfamiliar with online methods, urgent needs, smaller amounts.

Method 2: Online Currency Exchange + Withdrawal—Preferred by Investment-Oriented Users

Use bank app or online banking to convert TWD to JPY at the “spot selling rate” (about 1% better), deposit into a foreign currency account. When cash is needed, withdraw via ATM or counter (additional handling fee, starting at around 100 TWD).

Suitable for those with forex observation skills, who can buy low when TWD is strong, averaging costs. E.SUN Bank and Taishin Bank support this service.

The withdrawal fee for JPY cash is essentially the “spread between spot and cash rates,” usually around 100-200 TWD, but at least you profit from the exchange rate difference.

Advantages: 24/7 operation, can buy in batches to lower costs, exchange rate 1-2% better than counter.
Disadvantages: Need to open a foreign currency account first, withdrawal fees apply, basic forex knowledge required.
Who should use: Experienced forex investors, those who frequently invest in foreign currencies, long-term wealth management.

Method 3: Online Currency Conversion + Airport Pickup—Best Pre-Travel Option

This is the most recommended revised method. No need to open a foreign currency account beforehand. Just fill in the “currency to exchange,” “amount,” “pickup branch + date” on the bank’s official website, complete the transfer, and then bring ID and transaction notification to pick up in person.

Taiwan Bank’s “Easy Purchase” online currency conversion has no handling fee (pay with Taiwan Pay, even just 10 TWD), and the exchange rate is about 0.5% better. Taoyuan Airport has 14 Taiwan Bank counters, with 2 open 24 hours, perfect for pre-departure pickup 1-3 days in advance.

Advantages: Better exchange rates, often no or very low handling fees, can choose airport branch for pickup, reservation reduces cash shortage risk.
Disadvantages: Need to book 1-3 days in advance, pickup during bank hours, branch location cannot be changed.
Who should use: Well-planned travelers, those wanting to pick up cash directly at the airport.

Method 4: Foreign Currency ATMs—Fastest but Limited

Use chip-enabled bank cards at foreign currency ATMs to withdraw cash 24 hours, cross-bank withdrawals supported (cross-bank fee only 5 TWD). However, the number of machines is limited (~200 nationwide), currency options are limited (mainstream currencies like JPY, USD, EUR, CAD), and denominations are fixed (usually 1000/5000/10000).

E.SUN Bank’s foreign currency ATMs deduct directly from TWD accounts to withdraw JPY, with a daily limit of 150,000 TWD, and no currency exchange fee. The issue is that during peak times (airports, shopping centers), cash may run out, risking last-minute shortages.

Advantages: Instant withdrawal, 24/7 operation, very low cross-bank fees, high flexibility.
Disadvantages: Limited locations, fixed denominations, often out of stock during peak hours, limited currencies.
Who should use: Urgent needs, no time to visit banks.

Currency Exchange Methods Comparison—Cost Differences You Can’t Imagine

(Based on an estimated exchange of 50,000 TWD, December 2025 data)

Is It Worth Exchanging for JPY Now? What About CAD?

JPY Situation: By the end of 2025, the TWD to JPY is about 4.85, up 8.7% from 4.46 at the start of the year. The Bank of Japan is set to hike rates in December to 0.75% (a 30-year high), with Japanese bond yields reaching 1.93%. In the short term, JPY may surge to 150-152; however, in the medium to long term, global arbitrage unwinding pressures are expected to bring it back below 150.

Conclusion: It’s somewhat favorable, but better to buy in batches. Don’t exchange all at once; splitting into 2-3 batches for average cost is smarter.

CAD Situation: The TWD to CAD is about 1.68, heavily influenced by the US-Canada interest rate differential. The Bank of Canada has just started a loose monetary cycle, but the Fed’s rate cuts are limited, maintaining a US-Canada spread over 2%. As an energy currency, CAD benefits from rising oil prices, but geopolitical risks (Russia-Ukraine conflict, Middle East tensions) can cause 3-5% fluctuations.

Conclusion: Less suitable for hedging Taiwan stocks compared to JPY, but good for energy exposure. If you are optimistic about future oil prices, consider CAD allocation.

After Exchange—Investment Opportunities for JPY and CAD

Once you have cash or transferred to a foreign currency account, letting the money sit idle is a waste. Here are four common investment outlets:

1. Foreign Currency Fixed Deposits: Stable, with annual interest rates of 1.5-1.8% for JPY (E.SUN, Taiwan Bank), about 1.8-2.2% for CAD (Cathay, Fubon). Minimum 10,000 TWD, suitable for capital preservation.

2. Foreign Currency Insurance Policies: Medium-term holding, purchasing savings insurance can yield 2-3% guaranteed interest, with insurance coverage, suitable for conservative investors.

3. Foreign Currency ETFs: Growth-oriented, Yuanta 00675U tracks JPY index with 0.4% management fee; related CAD products are also available, tradable via brokerage apps for fractional investing.

4. Forex Trading: Advanced, directly trade USD/JPY, EUR/JPY, USD/CAD pairs via forex platforms (like Mitrade), supporting 24-hour trading, long and short positions. Benefits include leveraging small capital for large gains, but risks are high and require skill and discipline.

Quick FAQs

Q. What’s the difference between cash exchange rate and spot rate?
Cash rate is the bank’s buy/sell rate for physical cash, allowing immediate cash pickup but 1-2% worse than the international market. Spot rate is the forex market’s T+2 settlement rate, closer to international prices, suitable for electronic transfers and cashless transactions.

Q. How much JPY can I get for 10,000 TWD?
Using Taiwan Bank’s December 10, 2025, cash selling rate of 4.85, about 48,500 JPY. Using the spot rate of 4.87, about 48,700 JPY. The difference is small but adds up over time.

Q. What should I bring for counter exchange?
Taiwanese: ID card + passport; foreigners: passport + residence permit. For online booking, also bring transaction notification. Large amounts (over 100,000 TWD) may require declaration of source of funds. Under 20, need parental consent and approval.

Q. What’s the daily withdrawal limit at foreign currency ATMs?
Post-October 2025, many banks set a limit of 100,000-150,000 TWD equivalent per day. It’s recommended to split withdrawals over multiple days or use your own bank card to reduce cross-bank fees. Peak hours often face cash shortages; plan ahead.

Final Recommendations

Foreign currency investment has become a basic allocation for small investors in Taiwan. JPY hedges risk, CAD hedges energy exposure—each has its purpose. But choosing the wrong exchange method is like wasting money.

The best beginner options are: Taiwan Bank’s online currency conversion + airport pickup or foreign currency ATMs, which are cheap and safe. After exchanging, don’t just sit idle—consider fixed deposits, ETFs, or small forex trades to keep your funds active.

This way, you can travel abroad more cost-effectively and add a layer of protection during global market fluctuations.