## What's the Difference in Exchanging TWD to JPY? An Article to Understand the Most Cost-Effective Plan for 2025

By mid-December 2025, the TWD to JPY exchange rate has surpassed 4.85. Many are eager to travel abroad but don't know how to exchange money most cost-effectively. Honestly, just choosing the wrong currency exchange method can cost an extra NT$1,500 to NT$2,000—equivalent to a big meal. Today, we analyze the true costs of Taiwan's four main currency exchange methods to help you select the most suitable plan.

## Why Is Now a Good Time to Exchange for JPY?

Simply put, the Japanese yen is appreciating. From 4.46 at the start of the year to over 4.85 now, the short-term gain has reached 8.7%. For those looking to allocate yen assets, this trend is quite favorable.

More importantly, the role of the yen has long gone beyond "travel pocket money." As one of the world's three major safe-haven currencies (alongside USD and Swiss Franc), the yen often attracts capital during global market turbulence. When the Russia-Ukraine conflict erupted in 2022, the yen appreciated by 8% in one week, successfully buffering a 10% decline in the stock market. For Taiwanese investors, holding yen is like adding an extra hedge against Taiwan stock market volatility.

Additionally, the Bank of Japan is about to raise interest rates (market expectations are for a decision on December 19 to raise to 0.75%, a 30-year high), marking the end of the era of low-interest financing. This is quite positive for the medium-term trend of the yen.

## Do You Really Need to Exchange for JPY? Five Practical Scenarios

**Travel and Shopping** — Whether shopping or sightseeing in Tokyo, Osaka, or Hokkaido, cash payments in Japan still account for a large portion (credit card penetration is only 60%). When buying Japanese cosmetics, must-buy drugstore items from Switzerland, or anime merchandise, paying directly in yen to agents or Japanese platforms is more convenient.

**Studying Abroad and Working Holiday** — Those planning to stay long-term in Japan usually exchange currency in advance to avoid fluctuating rates increasing living costs.

**Financial Investment** — Yen fixed deposits (annual interest rate 1.5-1.8%), yen insurance policies (guaranteed interest 2-3%), or yen ETFs (like Yuanta 00675U) are good allocation options.

**Arbitrage Trading** — Using the US-Japan interest rate differential (US 4.0% vs. Japan 0.5%) to conduct forex trading, capturing short-term volatility gains.

**Asset Hedging** — Amidst increased Taiwan stock market volatility and geopolitical risks, allocating yen can stabilize your asset portfolio.

## Comparing the Four Main Currency Exchange Methods: Which Is the Cheapest?

### Plan 1: Foreign Currency ATMs (Fastest, but Limited)

Use a chip-enabled financial card at bank foreign currency ATMs to withdraw yen cash, available 24/7, with only NT$5 cross-bank fee. SinoPac Bank offers direct withdrawal from TWD accounts to yen, with a daily limit of NT$150,000.

**Advantages**: Instant到账, high flexibility, lowest cross-bank costs.
**Disadvantages**: Only about 200 locations nationwide, fixed denominations (1,000/5,000/10,000 yen), cash may run out during peak hours.
**Suitable for**: People without time for counter visits or urgent needs.
**Estimated cost** (NT$50,000): NT$800–NT$1,200.

### Plan 2: Online Currency Purchase + Airport Pickup (Most Convenient)

No need to open a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s official website. Taiwan Bank’s "Easy Purchase" online currency purchase has no handling fee (pay NT$10 via Taiwan Pay), with about 0.5% favorable exchange rate. You can reserve pickup at Taoyuan Airport (14 branches, 2 open 24 hours).

**Advantages**: Better exchange rates, often no or very low handling fees, can pick up cash at the airport.
**Disadvantages**: Need to book 1-3 days in advance, pickup time limited by bank hours, branches cannot be changed on the spot.
**Suitable for**: Planned travelers who want to save trouble before departure.
**Estimated cost** (NT$50,000): NT$300–NT$800.

### Plan 3: Online Currency Exchange + Counter Pickup (Favored by Investors)

Transfer TWD to yen via online banking or app into a foreign currency account, using "spot selling rate" (about 1% cheaper than cash). If cash is needed, withdraw at counter or foreign ATM, but will incur exchange spread and handling fee (minimum NT$100).

This method is best for observing exchange rate trends and buying in batches at low points for an average cost. For example, when TWD/JPY drops below 4.80, convert small amounts gradually.

**Advantages**: 24/7 operation, relatively favorable rates, suitable for phased accumulation.
**Disadvantages**: Need to open a foreign currency account first, cash withdrawal incurs additional fees.
**Suitable for**: Those experienced in forex, wanting to invest in yen deposits or ETFs in trend.
**Estimated cost** (NT$50,000): NT$500–NT$1,000.

### Plan 4: Bank Counter Cash Exchange (Most Secure but Most Expensive)

Bring cash TWD directly to bank or airport counter to exchange for yen cash. Although simple, the "cash cost" (compared to market rate) is about 1-2% worse, plus possible fixed handling fees, making it the most costly.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is about NT$0.2060 per yen (1 NT$ = 4.85 yen). Some banks charge NT$100–NT$200 handling fee.

**Advantages**: Safe, full denominations, staff assistance on-site.
**Disadvantages**: Worst exchange rate, limited hours (weekday 9:00-15:30), possible extra fees.
**Suitable for**: Those unfamiliar with online procedures or urgent cash needs (e.g., at the airport).
**Estimated cost** (NT$50,000): NT$1,500–NT$2,000.

## Quick Reference: Major Banks’ Cash Selling Rates and Fees

| Bank | Cash Selling Rate (1 yen / NT$) | Counter Fee |
|-------|------------------------------|--------------|
| Taiwan Bank | 0.2060 | Free |
| Mega Bank | 0.2062 | Free |
| CTBC Bank | 0.2065 | Free |
| First Bank | 0.2062 | Free |
| E.SUN Bank | 0.2067 | NT$100 per transaction |
| SinoPac Bank | 0.2058 | NT$100 per transaction |
| Hua Nan Bank | 0.2061 | Free |
| Cathay United Bank | 0.2063 | NT$200 per transaction |
| Fubon Bank | 0.2069 | NT$100 per transaction |

*Data source: Official bank websites and exchange rate sites, updated 2025/12/10. Actual rates may vary; check before transaction.*

## After Exchanging for Yen, What’s Next? Don’t Let It Lie Idle Without Earning

Exchanging yen is just the first step. The more important part is how to generate returns or use it for hedging.

**Yen Fixed Deposit** — Stable and capital-preserving. E.SUN Bank and Taiwan Bank allow online opening of foreign currency accounts, with a minimum of NT$10,000 yen, annual interest 1.5-1.8%. Suitable for conservative investors.

**Yen Insurance Policies** — Medium-term allocation. Cathay Life and Fubon Life offer yen savings insurance with guaranteed interest rates of 2-3%, suitable for 3-5 year funds.

**Yen ETFs** — Growth opportunity. ETFs like Yuanta 00675U and Fubon 00703 track yen indices, can be bought as fractional shares via broker apps, with 0.4% annual management fee, ideal for those bullish on yen appreciation.

**Forex Trading** — Swing gains. Trade USD/JPY or EUR/JPY directly on forex platforms, with two-way trading and 24-hour access, requiring minimal capital. However, it carries higher risk and requires trading experience.

Though the yen is a strong safe-haven currency, it also fluctuates bidirectionally. Rate hikes by the Bank of Japan are positive, but global arbitrage unwinding or geopolitical tensions (like Taiwan Strait) may temporarily push the exchange rate down 2-5%. It’s recommended to enter gradually and diversify risk.

## Practical Q&A: Your Top Questions Answered

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

Cash cost is the rate banks offer for physical bills and coins, settled immediately, but usually 1-2% worse than the spot rate. The spot rate is the forex market’s T+2 settlement rate, used for electronic transfers or account conversions, closer to international market prices. Simply put, spot rates are cheaper but take 2 days; cash costs are higher but can be received immediately.

**Q. How much yen can NT$10,000 buy?**

Based on Taiwan Bank’s cash rate on December 10, 2025, NT$10,000 ≈ 48,500 yen. Using the spot rate (~4.87), it’s about 48,700 yen, a difference of 200 yen (~NT$40). Actual amounts vary by bank and time; confirm the rate before withdrawal.

**Q. What documents are needed for counter exchange?**

Taiwanese citizens: ID card + passport. Foreigners: passport + residence permit. For company exchanges: business registration proof. If booked online in advance, bring transaction notice. Under 20 years old: accompanied by parent and consent form. For amounts over NT$100,000, source of funds declaration may be required.

**Q. What is the daily withdrawal limit at foreign currency ATMs?**

From October 2025, many banks adjusted limits. Usually NT$120,000–NT$150,000 per day with your bank card; other banks depend on issuing bank rules. Digital accounts (third-party) due to anti-fraud measures now limit to NT$100,000/day. Consider splitting withdrawals or using your bank’s card to avoid cross-bank fees.

## Your Currency Exchange Lazy Guide

Not keen on detailed research? Just follow this plan:

**Under NT$50,000, urgent need** → Foreign currency ATM (lowest cost, fastest)
**NT$50,000–NT$200,000, planning to travel** → Online currency purchase + airport pickup (most savings, most convenient)
**Over NT$200,000, want to invest** → Online exchange + phased entry (good rates, flexible)
**Sudden urgent need** → Airport counter exchange (most secure, though costly)

Follow the principle of "batch exchange + post-exchange asset allocation" to minimize costs. Whether for next year’s Japan trip or asset allocation amid TWD depreciation pressure, this yen trend is worth serious attention. Act now to make every dollar count.