## When is the most cost-effective time to exchange for Japanese Yen? Smart exchange strategies at a 4.85 exchange rate

**As of December 2025, the TWD to JPY exchange rate has surged to 4.85, marking a key milestone this year.** Many are wondering: Is it a good time to exchange for Yen now? Planning to spend 100,000 JPY abroad, or want to hold foreign currency as a hedge like HKD—what’s the most economical way to exchange?

Honestly, this isn’t about "whether to exchange" but "how to exchange without losing out." Just choosing different exchange methods can make a difference of up to 1,500 TWD on a 50,000 TWD transaction—enough to buy a cup of bubble tea.

## Why should you pay attention to this wave of Yen?

From 4.46 at the start of the year to 4.85 now, the Yen has appreciated by 8.7%. But the underlying drivers are even more intriguing.

**Return of safe-haven assets** — The Yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). During market turmoil, funds flow into Yen. During the Russia-Ukraine conflict, Yen appreciated 8% in a week while the stock market fell 10%. That’s hedging power. For Taiwanese investors, exchanging for Yen isn’t just for fun—it also protects Taiwan stocks.

**Central bank rate hikes on the horizon** — The Bank of Japan’s Governor Ueda recently signaled a hawkish stance, with market expectations of a rate hike to 0.75% by December 19 (a 30-year high). Japanese government bond yields have hit 17-year highs at 1.93%. The US-Japan interest rate differential is narrowing from 4%, but Yen arbitrage trading as a low-interest financing currency still carries risks—closing positions could cause exchange rate swings of 2-5%.

In other words: **Exchanging Yen now can yield returns, but it’s better to do it in stages, not all at once.**

## Four exchange methods, we’ve calculated the details for you

Many think there’s only one way to exchange Yen, but banks offer a variety of services with huge differences in rates and fees.

### Method 1: In-person cash exchange — The most traditional but most costly

Bring cash TWD to a bank or airport counter to buy Yen cash. Sounds simple, but actually the most expensive.

**Why?** Banks use "cash selling rates," which are about 1-2% worse than the spot rate. This difference alone can reduce your 50,000 TWD exchange by 500-1,000 TWD in purchasing power. Plus, some banks charge handling fees (100-200 TWD), totaling a loss of 1,500-2,000 TWD.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 TWD per Yen (4.85 Yen/TWD). Compare that with E.SUN Bank’s 0.2067, and a 10,000 TWD transaction would lose about 200 Yen.

**Who’s it suitable for:** Travelers unfamiliar with online operations or needing urgent cash at the airport. When time is limited, safety and reliability matter more than saving a few hundred TWD.

### Method 2: Online currency exchange + cash withdrawal — Balanced approach

Use bank app or online banking to convert TWD to Yen at the "spot selling rate" (about 1% cheaper than cash selling rate), then deposit into a foreign currency account. When needing cash, go to a counter or use foreign currency ATMs, incurring a withdrawal fee (around 5-100 TWD).

Overall cost: 500-1,000 TWD, saving a few hundred compared to in-person exchange. The key advantage is 24/7 operation and the ability to buy in stages for an average cost.

If you observe the rate below 4.80 and want to buy in stages, you can split 15,000 TWD into three parts over 1-2 weeks, avoiding the risk of buying at a high rate all at once.

**Who’s it suitable for:** Investors with foreign exchange accounts who want to wait for lower rates. After exchanging Yen, you can also directly transfer into fixed deposits (currently around 1.6% annual interest).

### Method 3: Online currency exchange + airport pickup — Best before traveling

No need to open a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website, then bring ID and transaction notice to pick up cash at the counter. Taiwan Bank and Mega International Bank offer this service, with options to reserve airport branch pickup.

Taiwan Bank’s "Easy Purchase" online currency exchange has no handling fee (pay only 10 TWD via TaiwanPay) and offers a 0.5% rate advantage. Before departure on Tigerair or EVA, pick up at 14 Taiwan Bank counters at Taoyuan Airport—seamless.

Cost: only 300-800 TWD, making it the best option for ample planning time.

**Who’s it suitable for:** Travelers who plan ahead, can decide amounts a week before departure, and want to withdraw cash directly at the airport.

### Method 4: Foreign currency ATM withdrawal — Most flexible but with limitations

Use a chip-enabled debit card at foreign currency ATMs to withdraw Yen cash 24/7, with a 5 TWD fee for interbank transactions. E.SUN Bank’s foreign currency ATMs allow Yen withdrawals from TWD accounts without exchange fees, with a daily limit of 150,000 TWD.

Disadvantages: limited locations (about 200 nationwide), fixed denominations (1,000/5,000/10,000 Yen), and cash shortages during peak times.

Cost: 800-1,200 TWD, suitable for urgent needs or last-minute decisions.

**Who’s it suitable for:** Action-oriented travelers who need flexibility or decide late at night.

## Cost comparison table

| Exchange method | Estimated cost (50,000 TWD) | Speed | Flexibility | Best scenario |
|------------------|------------------------------|--------|--------------|--------------|
| In-person cash exchange | 1,500-2,000 TWD | Immediate | Low | Urgent airport needs |
| Online exchange + withdrawal | 500-1,000 TWD | 1 day | Medium | Investment planning |
| Online currency exchange + airport pickup | 300-800 TWD | 1-3 days | Low | Travel planning |
| Foreign currency ATM | 800-1,200 TWD | Immediate | High | Last-minute needs |

**Conclusion:** If you have time to plan ahead, online currency exchange is the most economical; for staged investments or asset allocation, online exchange offers flexibility; no time at all? Use ATMs; urgent airport needs? In-person exchange.

## How much TWD do you need to exchange for 100,000 JPY? How to interpret rate fluctuations?

Using the current 4.85 rate, 100,000 Yen costs about 20,600 TWD (100,000 ÷ 4.85).

But that’s just the surface. The real question is: **Will the rate go higher?**

Based on recent analysis, USD/JPY has fallen from a high of 160 at the start of the year to 154.58 now. Short-term, it might rebound to 155, but medium to long-term, it’s expected to break below 150. In other words, the TWD to Yen has room to appreciate (Yen appreciation = TWD depreciation), which benefits Taiwanese currency holders.

Plus, the BOJ’s rate hike expectations strengthen the Yen’s outlook. In the second half of the year, Taiwan’s currency exchange demand increased by 25% compared to last year, mainly driven by travel recovery and hedging needs—further evidence of Yen’s attractiveness.

**Suggested strategies:**
- **Small travel amounts (5-10 million TWD)** — Use online currency exchange or ATMs, don’t worry too much about rate fluctuations
- **Medium investment (10-50 million TWD)** — Split into 3-4 batches over 1-2 weeks each
- **Large allocations (50 million+ TWD)** — Combine fixed deposits and investments, first convert to Yen for interest, then shift into ETFs or forex trading based on market conditions

## After exchanging Yen, don’t let it sit idle

Many people exchange Yen and leave it idle, missing out on potential gains.

**Yen fixed deposits** — The safest. E.SUN/TAIWAN BANK offer foreign currency accounts, with a minimum of 10,000 Yen, earning 1.5-1.8% annually. More than the 1% typical for TWD deposits, earning a bit extra.

**Yen insurance policies** — Medium-term holding. Cathay/Fubon’s USD/Yen savings insurance guarantees 2-3% interest but lock in for 3-5 years.

**Yen ETFs (00675U, 00703)** — Growth-oriented. Yuanta 00675U tracks Yen index, can buy fractional shares via broker apps for long-term Yen appreciation.

**Forex trading USD/JPY, EUR/JPY** — Swing trading for profit. Platforms like Mitrade offer commission-free, low-spread trading with stop-loss and take-profit tools, but require risk management skills.

Which to choose? If just for travel, fixed deposits are safest; for asset allocation, ETFs are steady; for short-term swings, forex trading is exciting.

## Key Q&A

**Q: How much is the difference between cash rate and spot rate?**
Cash rate is the bank’s buy/sell rate for physical cash, usually 1-2% worse than the spot rate. Spot rate is used for electronic settlement, close to international market price, but T+2 settlement. Basically, electronic transfers are cheaper but take two days; cash is immediate but more expensive.

**Q: How much Yen can I get with 10,000 TWD?**
At 4.85, about 48,500 Yen. But actual rates vary by bank, normal difference of 100-200 Yen is common.

**Q: What ID do I need to exchange currency?**
ID card + passport are essential. If booking online for pickup, bring transaction notice. Under 20 needs parental consent. Large exchanges over 10 million TWD may require source of funds declaration.

**Q: How much can I withdraw daily from foreign currency ATMs?**
Different banks have different limits. CTBC: equivalent to 120,000 TWD/day; Taishin: 150,000 TWD/day; E.SUN: 50,000 TWD/day. It’s best to split withdrawals to avoid hitting limits. During peak times (airports), cash may run out—plan ahead.

## Final advice

Yen is no longer just pocket money for travel; it also serves hedging and investment purposes. By the end of 2025, this wave is a good opportunity to allocate—under TWD depreciation pressure, converting some idle funds into Yen can hedge risks and profit from exchange rate movements.

**The core principles are: split your exchanges into stages, and don’t leave the money idle after.** Online currency exchange + airport pickup is easiest for beginners, or use ATMs for emergencies. After exchanging, don’t just leave it—transfer into fixed deposits or ETFs to earn interest and grow assets while saving.

This way, you not only enjoy cost-effective travel but also add a layer of protection during market turbulence.