Do I have to go to the bank to exchange Japanese Yen? Online currency exchange can save up to 2000 yuan

By December 2025, the Taiwan dollar (TWD) against the Japanese Yen (JPY) has fallen to 4.85, and more people are exchanging for Yen. But do you know? Exchanging 50,000 TWD through different channels can save you up to 1,500 to 2,000 TWD. The issue isn’t whether to exchange or not, but how to do it cost-effectively.

Why exchange for Yen now? Three key reasons

Reason 1: Essential travel and shopping needs

Japanese stores have a deep-rooted cash culture, with only 60% credit card penetration. Shopping in Tokyo, skiing in Hokkaido, or vacationing in Okinawa still mostly requires cash. Additionally, Japan purchasing agents, online auctions, and even study abroad or part-time work plans all require Yen.

Reason 2: Yen is one of the world’s safe-haven currencies

The three major safe-haven currencies are USD, Swiss Franc, and Yen. Japan’s economy is stable, and government debt is low. When markets are turbulent, funds flow into Yen. During the Russia-Ukraine conflict in 2022, Yen appreciated 8% in a week, while the stock market dropped 10%—exchanging for Yen acts as insurance for Taiwan stocks.

Reason 3: Interest rate arbitrage investment opportunities

The Bank of Japan maintains ultra-low interest rates (~0.5%), while US rates are above 4%. Investors borrow Yen at low interest to buy USD and earn the interest rate spread. This also explains Yen’s volatility—when risks rise, arbitrage traders close positions and buy Yen back, causing rapid exchange rate changes.

Four main channels to exchange Yen in Taiwan, with huge cost differences

Many think exchanging Yen is just going to the bank counter, but the exchange rate alone can eat up several cups of bubble tea. Based on the latest December 2025 rates, we analyze each method.

Method 1: Bank counter cash exchange — slowest and most expensive

Bring cash TWD to a bank or airport counter to exchange for Yen cash. Looks straightforward, but banks use “cash selling rate,” which is 1-2% worse than the market spot rate. For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 TWD per Yen (equivalent to 1 TWD = 4.85 Yen), with some banks adding handling fees.

Cost estimate: Exchanging 50,000 TWD in cash at counters results in a loss of 1,500 to 2,000 TWD

Pros: Safe, full denominations, staff assistance
Cons: Rate difference, limited business hours (9:00-15:30), handling fees increase cost
Suitable for: Emergency needs, unfamiliar with online operations

Method 2: Online currency exchange to foreign currency account — flexible but with fees

Use bank app or online banking to transfer TWD to Yen in a foreign currency account, using “spot sell rate” (about 1% cheaper than cash selling rate). If cash withdrawal is needed, go to foreign currency ATMs or counters, but this incurs additional fees (from about 100 TWD).

This method allows staged entry, averaging costs. For example, buy in installments when TWD/JPY drops below 4.80, avoiding a single high-rate exchange.

Cost estimate: 50,000 TWD online exchange + withdrawal, loss of 500 to 1,000 TWD

Pros: 24/7 operation, staged buying, better rates
Cons: Need foreign currency account, withdrawal fees
Suitable for: Experienced forex investors, long-term Yen holders (can transfer to Yen fixed deposits with 1.6% annual interest)

Method 3: Online currency settlement reservation — best for planners

No need for a foreign currency account. Fill in amount, branch, and date on bank website, then transfer funds. Bring ID and transaction notice to pick up cash in person. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service, with airport pickup options.

Taiwan Bank’s online settlement is fee-free (pay only 10 TWD via TaiwanPay), with a 0.5% rate advantage. Taoyuan Airport has 14 Taiwan Bank outlets, 2 of which are 24-hour, perfect for last-minute exchange before travel.

Cost estimate: 50,000 TWD online settlement, loss of 300 to 800 TWD

Pros: Good rates, often no fee, airport pickup available
Cons: Need prior reservation (1-3 days), only at designated branches, limited hours
Suitable for: Planned travelers, those wanting to pick up cash at the airport

Method 4: Foreign currency ATM withdrawal — most convenient but limited locations

Use chip-enabled bank card at foreign currency ATMs to withdraw Yen, supporting 24-hour operation, cross-bank fee of about 5 TWD. Nationwide about 200 ATMs, but limited in locations, mainly major currencies (Yen, USD, Euro, etc.).

SinoPac Bank’s foreign currency ATMs allow direct withdrawal from TWD accounts, with a daily limit of 150,000 TWD and no exchange fee. Note that Japan ATMs will only accept international cards (Mastercard/Cirrus) from late 2025.

Cost estimate: 50,000 TWD withdrawal via ATM, loss of 800 to 1,200 TWD

Pros: Instant withdrawal, high flexibility, low cross-bank fees
Cons: Limited locations and denominations (fixed 1000/5000/10000 Yen), possible stock shortages during peak times
Suitable for: Last-minute cash needs, no time to visit banks

Quick comparison table — Cost of exchanging 50,000 TWD to Yen

Is it worth exchanging now? Exchange rate analysis + timing tips

In December 2025, TWD/JPY is at 4.85, up 8.7% from the start of the year at 4.46. From an investment perspective, under TWD depreciation pressure, this appreciation is significant, creating arbitrage opportunities.

Short-term exchange rate outlook:

Bank of Japan Governor Ueda Kazuo recently signaled a hawkish stance, with expectations of a 0.25 bps rate hike on December 19 to 0.75% (a 30-year high). USD/JPY has fallen from 160 to 154.58 since early this year, likely to fluctuate around 155 short-term, but the medium-long-term trend is expected below 150.

Investor note: Yen is a safe-haven, but also faces arbitrage unwind risks. If global arbitrage positions close, Yen could fluctuate 2-5% short-term. Geopolitical tensions (Taiwan Strait, Middle East) will also influence volatility.

Our advice: Don’t exchange all at once. Break into 3-4 installments, buying gradually between 4.83 and 4.90, reducing costs and avoiding high single-point exchange rates.

After exchanging Yen, how to make your money grow — four value-added options

Once you have Yen, don’t just leave it idle. Depending on your risk appetite, consider these options:

Conservative — Yen fixed deposit

• Available at E.SUN Bank, Taiwan Bank foreign currency accounts
• Minimum 10,000 Yen, annual interest 1.5% to 1.8%
• Suitable for long-term holding of 5-10 years

Mid-term — Yen insurance policy

• Cathay, Fubon life offer Yen savings insurance
• Guaranteed interest 2-3%, combining protection and returns
• Suitable for balancing security and income

Growth — Yen ETFs

• Yuanta 00675U tracks Yen index, management fee 0.4%
• Can buy fractional shares or set up regular investments via brokerage apps
• Suitable for those optimistic about Yen appreciation in medium-long term

Swing trading — Forex trading

• Trade USD/JPY, EUR/JPY directly
• Long and short positions, 24-hour trading, small capital required
• Suitable for experienced traders who can handle high volatility

Quick FAQ

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

Cash rate is the rate banks offer for physical cash, convenient but 1-2% worse than market spot rate. Spot rate is the foreign exchange market rate settled T+2, used for electronic transfers, closer to international market price, but takes two business days. In short: cash is convenient but costly; transfers are cheaper but slower.

Q: How much Yen do I get for 10,000 TWD?

Calculate as “Yen amount = TWD amount × rate.” Using Taiwan Bank’s December 10, 2025, cash rate of 0.2060, 10,000 TWD ÷ 0.2060 ≈ 48,500 Yen. Using the spot rate 0.2055, about 48,700 Yen, a difference of 200 Yen (~40 TWD).

Q: What ID do I need for cash exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit; companies: business registration. If pre-booked online, bring transaction notice. Under 20 years old need parent consent; amounts over 100,000 TWD may require source declaration.

Q: Are there withdrawal limits at foreign currency ATMs?

Starting October 2025, banks will tighten regulations. CTBC: 120,000 TWD/day; Taishin: 150,000 TWD/day; E.SUN: 50,000 Yen per transaction, 150,000 Yen/day. Check your bank’s latest rules. During peak times (airports), stock shortages may occur; plan ahead for safety.

Final tips — two principles to maximize savings

Yen is no longer just for travel “pocket money,” but an asset with hedging and investment value. Remember the two principles: “Staged exchange + don’t leave it idle after exchange” to minimize costs.

For beginners, the safest approach is to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then transfer to fixed deposits, ETFs, or small-scale trading based on needs. This way, traveling becomes more cost-effective, and you gain an extra layer of asset protection during market turbulence.