## Under the Wave of TWD Depreciation, How Much Should the Yen Be Now?

By December 2025, how much the yen is worth has become a top concern for many Taiwanese. The TWD to JPY exchange rate currently hovers around 4.85, up over 8% from 4.46 at the beginning of the year. This not only means higher currency exchange costs for travelers but more importantly—reflects a reshuffling of global arbitrage trades and signals a policy shift by the Bank of Japan.

You might still be hesitating whether to exchange, but the real test isn’t "to exchange or not," it’s "how to exchange most wisely."

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

### Safe-Haven Era, Yen’s Status Rises

The yen is no longer just a travel currency. As one of the world's three major safe-haven currencies (USD, Swiss Franc, Yen), it often becomes a refuge during market turbulence. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, while the stock market fell 10%—a clear demonstration of its safe-haven function. For Taiwanese investors, holding yen is akin to buying insurance against Taiwan stock market volatility.

### Bank of Japan Rate Hike Expectations Intensify

BOJ Governor Ueda Kazuo has recently adopted a hawkish stance, with market expectations of an 80% chance of rate hikes. The December 19 meeting is expected to raise rates by 0.25 bps to 0.75% (a 30-year high), with Japanese government bond yields reaching a 17-year high of 1.93%. This indicates potential for yen appreciation in the future; short-term fluctuations are inevitable, but the medium to long-term trend remains optimistic.

### Asset Allocation Needs Under TWD Depreciation Pressure

In the second half of the year, Taiwan’s currency exchange demand increased by 25%, reflecting the relative weakness of the TWD. Many savvy investors have started to gradually allocate yen as part of their diversified assets.

## 4 Ways to Exchange Currency, Which Is the Most Cost-Effective?

After understanding the current yen rate, the next step is choosing the right exchange channel. Cost differences can be surprisingly large—using the same 50,000 TWD, choosing the wrong method could cost an extra 1,500-2,000 TWD.

### Method 1: Bank Counter Cash Exchange—Convenient but Most Expensive

Bring TWD directly to a bank or airport counter to receive yen cash on the spot. This traditional method is simple but uses the "cash selling rate" (1-2% worse than the spot rate), making it the most costly.

For example, Taiwan Bank’s cash selling rate is about 0.2060 (1 TWD = 4.85 yen), with some banks charging fixed handling fees.

**Advantages**: Safe, full denominations, on-site assistance
**Disadvantages**: Worse exchange rate, limited operating hours, possible handling fees
**Estimated Cost**: 50,000 TWD exchange could lose 1,500-2,000 TWD
**Suitable for**: Those unfamiliar with online operations or small, urgent exchanges

### Method 2: Online Currency Exchange to Deposit Account—Ideal for Investors

Use bank apps or websites to convert TWD to yen and deposit into a foreign currency account, using the "spot selling rate" (about 1% discount). Can operate 24/7 for phased entry. If cash is needed later, withdraw at counters or ATMs, but additional withdrawal fees apply.

For example, after exchanging via E.SUN Bank app, withdrawal fees start at around 100 TWD. This method suits those monitoring rates and accumulating yen at low points (e.g., when TWD/JPY drops below 4.80).

**Advantages**: 24/7 access, averaged cost over time, better rates
**Disadvantages**: Need to open a foreign currency account first, withdrawal fees apply
**Estimated Cost**: 50,000 TWD exchange could lose 500-1,000 TWD
**Suitable for**: Those experienced with forex, wanting to invest in yen

### Method 3: Online Currency Settlement with Airport Pickup—Best Pre-Departure Option

No need for a foreign currency account. Fill in amount and date on the bank’s website, complete the transfer, then bring ID and transaction notice to designated branches for pickup. Taiwan Bank’s "Easy Purchase" online settlement is fee-free (only 10 TWD via Taiwan Pay), with about 0.5% better rates.

Taoyuan Airport has 14 Taiwan Bank branches, including 2 open 24 hours, making it the most convenient pre-departure pickup.

**Advantages**: Best rates, often no handling fee, airport pickup
**Disadvantages**: Need to book 1-3 days in advance, branch cannot modify
**Estimated Cost**: 50,000 TWD exchange could lose 300-800 TWD
**Suitable for**: Well-planned travelers wanting to pick up at the airport

### Method 4: Foreign Currency ATM Withdrawal—Emergency Savior

Use a chip-enabled financial card at foreign currency ATMs to withdraw yen cash, available 24/7, with a cross-bank withdrawal fee of only 5 TWD. E.SUN Bank’s foreign currency ATMs have a daily limit of 150,000 TWD, with no extra forex handling fee.

Limitations include limited locations (about 200 nationwide), fixed denominations (1,000/5,000/10,000 yen), and potential cash shortages during peak times.

**Advantages**: Instant withdrawal, flexible, low cross-bank fee
**Disadvantages**: Few locations, denomination restrictions, possible cash shortages
**Estimated Cost**: 50,000 TWD exchange could lose 800-1,200 TWD
**Suitable for**: Those with no time to visit banks or in urgent need

## How Much Is the Yen Now? When Is a Good Time?

The current yen rate isn’t just a number; it influences your exchange costs and investment returns.

Currently, TWD to JPY is about 4.85, up 8.7% from the start of the year. Technically, USD/JPY has fallen from 160 to 154.58 since early this year, with short-term fluctuations around 155, but the medium to long-term trend is expected to decline further below 150.

Key judgment: BOJ rate hikes will support the yen, but global arbitrage unwinding risks (potential short-term swings of 2-5%) exist. Geopolitical tensions (Taiwan Strait, Middle East) could also temporarily depress the rate.

**Suggested approach**: Phased entry rather than all at once. Consider increasing positions when the TWD is relatively strong (and yen relatively weak) to avoid timing risks.

## After Exchanging for Yen, Don’t Let Your Money Sit Idle

Exchanging yen is just the first step; the real gains come from subsequent asset allocation.

**Yen Fixed Deposit**: Conservative option. Banks like E.SUN and Taiwan Bank offer foreign currency accounts with minimums of 10,000 yen and annual interest rates of 1.5-1.8%.

**Yen Insurance Policies**: Medium-term holding. Cathay and Fubon Life offer savings insurance with guaranteed interest rates of 2-3%.

**Yen ETFs**: Growth-oriented. For example, Yuanta 00675U tracks the yen index, available via broker apps with fractional investing, annual management fee 0.4%.

**Yen Forex Trading**: Swing trading. Directly trade USD/JPY or EUR/JPY, with 24-hour bidirectional trading, suitable for capturing rate fluctuations.

While yen is a safe-haven, it also experiences two-way volatility. BOJ rate hikes are bullish long-term, but arbitrage unwinding or geopolitical conflicts could temporarily depress the rate. For forex swing trading, start with small amounts and set stop-loss and take-profit levels.

## Common Q&A

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

Cash rate is the bank’s buy/sell rate for physical cash, suitable for travel exchange. It’s on average 1-2% worse than the spot rate. The spot rate is the foreign exchange market’s T+2 settlement rate, closer to international market prices, but requires waiting for settlement.

**Q: How much yen can I get with 10,000 TWD?**

Using Taiwan Bank’s cash selling rate of 4.85, about 48,500 yen. With the spot rate (~4.87), about 48,700 yen—roughly 200 yen difference.

**Q: What do I need to bring for counter exchange?**

ID + passport. If pre-booked online, also bring transaction notice. Under 20 years old needs parental accompaniment. Large exchanges (over 100,000 TWD) may require source of funds declaration.

**Q: What’s the daily limit for foreign currency ATM withdrawals?**

Post-2025 regulations vary by bank. CTBC allows equivalent TWD 120,000/day, Taishin 150,000/day, E.SUN 50,000 per transaction (including TWD 150,000 daily card limit). Use your own bank card to avoid cross-bank fees.

## Conclusion

The yen has evolved from "pocket money for travel" to an asset with both hedging and investment value. While the rate fluctuates daily, following the principles of "phased exchange + asset allocation after exchange" can lower costs and increase returns.

Beginners are advised to start with "Taiwan Bank online settlement + airport pickup" or "foreign currency ATM," then transition into fixed deposits, ETFs, or forex swing trading based on needs. This approach ensures more cost-effective travel and adds a layer of asset protection during global market turbulence.