How to choose currency exchange for Japanese Yen? Comparison of costs across 4 major channels and a guide to Taoyuan Airport operating hours

Amid the wave of TWD depreciation, the Japanese Yen, as one of the three major safe-haven currencies, is attracting more and more Taiwanese to exchange currency. As of December 10, 2025, the TWD/JPY exchange rate has reached 4.85, hitting a new high this year. But did you know? Choosing the wrong currency exchange channel can cost you an extra 2000 NT dollars in spread alone—equivalent to the price of a cup of bubble tea.

Understanding Cash Rate vs. Spot Rate: Save Over 1000 NT Dollars

The first key many overlook is: What’s the difference between the cash rate and the spot rate.

Cash Rate (Cash Rate) applies to physical banknotes, used when banks buy and sell cash, and is usually 1-2% worse than the spot rate. That’s why exchanging cash at counters often results in losses—the TWD/JPY rate you get is often the worst among the four major banks.

Spot Rate (Spot Rate) applies to electronic transfers, foreign currency accounts, and transactions without physical delivery, closely aligned with international market prices, offering better rates. For example, Taiwan Bank’s same-day cash selling rate is 0.2060 NT$/JPY, but online spot rates can reach above 0.2065—small difference, but exchanging 50,000 NT$ yields over 200 JPY difference.

Four Major Currency Exchange Channels Tested: Counter, Online, ATM—Different Calculations

Channel 1: Bank Counter Cash Exchange—Least Cost-Effective but Most Secure

Bring NT$ directly to a bank branch or airport counter to get JPY cash on the spot. This traditional method is the most straightforward but also the most expensive.

Cost Breakdown (using 50,000 NT$ as example):

• Taiwan Bank’s cash selling rate at 0.2060 NT$/JPY, converting to about 242,700 JPY
• Some banks add an extra 100-200 NT$ handling fee
• Estimated loss: 1500-2000 NT$

When to Use: Not familiar with online operations, urgent small cash needs (e.g., at the airport, forgetting to withdraw cash).

Tested cash selling rates and fees on December 10, 2025:

Channel 2: Online Exchange + Foreign ATM Withdrawal—Smart Way to Distribute Costs

Use bank app to convert NT$ to JPY at the spot rate (about 1% better), then withdraw cash via foreign currency ATM using a debit card. Only pay 5 NT$ cross-bank fee (free with your own bank card).

Cost Breakdown:

• Online exchange at spot rate, about 243,500 JPY for 50,000 NT$
• ATM withdrawal fee of just 5 NT$
• Estimated loss: 500-1000 NT$

When to Use: Have a foreign currency account, frequently use foreign currencies, or don’t need to withdraw all at once. Good for gradual entry when rates dip, and can also consider JPY fixed deposits (annual interest 1.5-1.8%).

Note: Nationwide about 200 foreign currency ATMs, limited in peak times, cash may run out—don’t wait until the last minute.

Channel 3: Online Currency Purchase + Taoyuan Airport Pickup—Best for Travelers

No need a foreign currency account, just book online via bank website, select pickup branch and date, then bring ID and transaction notification to pick up in person.

Taiwan Bank’s “Easy Purchase” online currency service is the most comprehensive:

• About 0.5% better rate
• NT$10 fee for Taiwan Pay payment, free via other methods
• 14 Taiwan Bank branches at Taoyuan Airport, 2 open 24 hours

Taoyuan Airport Exchange Hours:

• 24-hour service: Terminal 1 B1F, Terminal 2 B1F (each 1 location)
• Regular hours (Weekdays 09:00-21:00, Holidays 08:00-21:00): other 12 locations across both terminals

Cost Breakdown (50,000 NT$):

• Spot rate approx. 243,500 JPY
• Usually no fee or just NT$10
• Estimated loss: 300-800 NT$

When to Use: Planned travelers who want cash ready a week before departure, avoiding bank visits at the last minute.

Reminder: Book at least 1-3 days in advance, once selected, cannot change, and must pick up during business hours.

Channel 4: Foreign Currency ATM—24/7 Emergency Option

Use chip-enabled debit card at foreign currency ATMs to withdraw JPY directly, deducting from NT$ account, supporting cross-bank operations (only NT$5 cross-bank fee, free with your own bank card), available 24/7.

Advantages of Seng Fung Bank’s foreign currency ATM:

• Daily withdrawal limit of 150,000 NT$ equivalent
• No exchange fee (only NT$5 cross-bank fee)
• Fixed denominations: 1000/5000/10000 JPY

Cost Breakdown:

• Market rate at withdrawal time
• Cross-bank fee of NT$5 (may vary by bank)
• Estimated loss: 800-1200 NT$

When to Use: Urgent needs, no time for counter, busy schedule. Best combined with the other channels.

The Ultimate Comparison Table of Four Methods

Money-saving tip: For budgets of 50k-200k NT$, the best is “Online currency exchange + Taoyuan Airport pickup” or “Online exchange + multiple ATM withdrawals,” minimizing overall costs.

Is It Really Worth Exchanging Yen Now?

By end of 2025, TWD/JPY reached 4.85, up 8.7% from early year’s 4.46, making currency gains quite attractive. Exchange demand is rising—Taiwan’s forex volume increased by 25% in the second half, driven by tourism recovery and hedging needs.

But risks exist: BOJ (Bank of Japan) is on the verge of raising interest rates, with Governor Ueda’s hawkish comments pushing market expectations to 80% for a rate hike to 0.75% at the December 19 meeting (30-year high). USD/JPY has fallen from the high of 160 early this year to around 154.58, short-term volatility may bring it back to 155, but medium-long term, it’s expected below 150.

Investment perspective: JPY as a major safe-haven currency is good for hedging Taiwan stocks, but arbitrage closing risks may cause short-term swings of 2-5%. It’s advisable to enter gradually, avoiding a one-time full exchange.

Next Steps After Exchanging Yen: Make Your Money Work

Once you have JPY, don’t let it sit idle without interest. These 4 options suit small investors for earning or growth:

JPY Fixed Deposit: The safest choice. E.SUN Bank and Taiwan Bank offer foreign currency accounts, online deposits starting at 10,000 JPY, with annual interest rates of 1.5-1.8%.

JPY Insurance Policies: Medium-term holding. Cathay and Fubon life insurance savings plans with guaranteed 2-3% interest, suitable for those seeking protection + returns.

JPY ETFs: Growth allocation. Yuanta 00675U tracks JPY index, can buy fractional shares via broker apps, suitable for periodic investment.

Forex Swing Trading: Trade USD/JPY or EUR/JPY directly, capturing exchange rate swings. Pros include two-way trading, 24/7 access, but higher risk than deposits.

While JPY remains a strong hedge, dual-direction volatility must be considered. For investing, JPY ETFs (management fee 0.4%) can diversify risk; for swing trading, basic technical analysis and risk management are essential.

Quick FAQs

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

Using Taiwan Bank’s December 10, 2025, cash selling rate of 0.2060 NT$/JPY, 10,000 NT$ ≈ 48,500 JPY. With online spot rate (~0.2065), about 48,700 JPY—difference of 200 JPY (~NT$40).

Q. What to bring for counter exchange?

ID + passport. If pre-booked online (online currency purchase), also bring transaction notification. Under 20 years old need parent’s consent; over 100,000 NT$ large exchange requires source declaration.

Q. Is there a daily limit for foreign currency ATM withdrawal?

Post-2025 regulations, most banks’ own cards have a daily limit of 120,000-150,000 NT$ equivalent. Other banks vary; check with issuing bank. Using your own bank card avoids cross-bank fees, or split withdrawals to handle peak cash shortages.

Summary: Choose the Right Channel, Save the Cost of a Drink

JPY is no longer just for travel “pocket money,” but an asset with hedging and investment value. Whether traveling or asset allocation, follow the principles of “gradual exchange + don’t leave it idle after exchange” to minimize costs and maximize gains.

Beginners are recommended to start with “Taiwan Bank online currency exchange + Taoyuan Airport pickup” or “Online exchange + foreign currency ATM,” then shift into fixed deposits, ETFs, or swing trading as needed. This way, you save on costs and make your money work harder, both for travel and market turbulence.