Yen exchange cost revealed: How to choose the most cost-effective among four major channels

By the end of 2025, the TWD to JPY exchange rate will reach the 4.85 mark. Many are preparing to enter the market, but bank handling fees and cash markups have caused some to lose money. We analyze the four main channels for exchanging JPY, using the latest rates to show you how to exchange without losing out.

Why is it important to carefully calculate your exchange costs now?

The Japanese yen is not just a travel currency; it is also one of the world’s top three safe-haven assets. From 4.46 at the start of the year to the current 4.85, it has appreciated by 8.7%, which is a tangible foreign exchange gain for Taiwanese investors. More importantly, the Bank of Japan’s rate hike expectations are heating up (expected to rise to 0.75% in December, a 30-year high), increasing the medium- to long-term bullish outlook for the yen.

But here’s the key issue: the exchange channel you choose may have a spread in handling fees that could cost you several thousand dollars in potential gains.

Cost comparison of four JPY exchange channels

Based on the latest data as of December 2025, with NT$50,000 as a baseline, the final gains differ significantly across channels.

Option 1: Bank counter — the most traditional but also the most expensive

Exchange cash NT$ at the bank counter or airport using the “cash selling rate.” This rate is 1-2% worse than the spot rate, and some banks charge additional handling fees.

For example, Taiwan Bank’s December 10 rate is 0.2060 NT$/JPY (equivalent to NT$1 = 4.85 JPY). Chinatrust even offers 0.2065, and Cathay United Bank charges NT$200 handling fee. For NT$50,000, these costs alone can eat up NT$1,500–2,000.

Suitable for: Urgent airport needs, unfamiliar with online operations, travelers with amounts under NT$30,000. Not cost-effective otherwise.

Option 2: Online exchange + cash pickup — for advanced users

Use the bank app to convert NT$ to JPY at the “spot selling rate” into a foreign currency account, then pick up cash at the counter or foreign currency ATM. This avoids the cash exchange spread (about 1%), but incurs withdrawal fees of NT$100–500.

E.g., E.SUN Bank app exchange and withdrawal fee starts at NT$100; Mega Bank cross-bank withdrawal about NT$200. Overall, NT$50,000 may lose NT$500–1,000, but this is much better than in-branch.

Key advantage: You can buy in installments when the rate is low (e.g., when NT$ to JPY is below 4.80), averaging costs. Also, the foreign currency account can transfer funds into JPY fixed deposits (annual interest 1.5–1.8%), generating passive income.

Suitable for: Those with forex investment experience planning to hold JPY long-term.

Option 3: Online currency settlement + airport pickup — money-saving before travel

No need for a foreign currency account. Fill in amount, date, and airport branch on the bank’s website, then pick up in person. Taiwan Bank’s “Easy Purchase” series has no handling fee (using Taiwan Pay costs only NT$10), with a rate premium of 0.5%, keeping costs NT$300–800.

The biggest advantage is Taoyuan Airport has 14 Taiwan Bank branches and 2 24-hour branches, allowing reservation for airport pickup, saving time from going into town.

Disadvantage: Needs to be booked 1–3 days in advance; pickup times are limited by bank hours and branches cannot be changed. But for well-planned travelers, this minor inconvenience is worth it.

Suitable for: Travelers planning a week ahead, with amounts NT$50,000–200,000.

Option 4: Foreign currency ATM — a temporary lifesaver

Use a chip-enabled financial card to withdraw JPY cash directly from foreign currency ATMs, available 24/7, with cross-bank handling fee NT$5. SF Bank foreign currency ATMs have a daily limit of NT$150,000, with no exchange fee.

Sounds convenient, but there are limitations: only about 200 ATMs nationwide, fixed denominations (only 1,000/5,000/10,000 JPY), and cash shortages during peak times. At airports or during peak seasons, cash may run out.

Suitable for: Urgent small amounts (NT$10,000–30,000), those with foreign currency accounts. Not recommended as the main method.

Cost ranking for NT$50,000 exchange into JPY across four options

Conclusion: Online currency settlement is the most cost-effective, but requires planning ahead; online exchange is the most flexible, suitable for investors; foreign currency ATMs are the most convenient, but least stable.

Is now a good time to exchange? Three key factors

1. Exchange rate trend — medium-term bullish signal

The US is entering a rate-cut cycle, supporting the yen. Meanwhile, BOJ Governor Ueda Kazuo has recently turned hawkish, with market expectations of rate hikes reaching 80%. The December meeting is expected to raise rates by 0.25 bps to 0.75% (a 30-year high). USD/JPY has fallen from the high of 160 at the start of the year to 154.58, with a medium- to long-term forecast below 150.

This indicates the yen will continue to appreciate against the NT$, so it’s not too late to exchange now.

2. Market demand — tourism and safe-haven flows rising together

In the second half of the year, Taiwan’s forex demand increased by 25%, mainly due to the recovery of Japanese tourism and asset hedging. Safe-haven capital inflows into the yen have become a trend, resonating with the BOJ’s rate hike expectations.

3. Risk warning — arbitrage unwinding may cause volatility

Although the yen remains a safe-haven asset, global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) could temporarily weaken the exchange rate. It’s advisable to buy in installments to avoid a one-time full exchange.

Exchange strategy: Observe the rate fluctuating between 4.80–4.85, and enter in 2–3 batches, each with 20–30% allocation, to average costs amid volatility.

After exchanging into JPY, don’t let it just sit idle

Many people hold onto their JPY after exchange, missing out on appreciation opportunities. Here are four JPY investment options, from conservative to growth-oriented.

1. JPY fixed deposit — annual interest 1.5–1.8%

The safest choice. E.SUN Bank and Taiwan Bank offer foreign currency accounts, with online deposits starting from 10,000 JPY. Annual interest 1.5–1.8%, principal and interest guaranteed.

2. JPY insurance policies — guaranteed interest 2–3%

Cathay Life and Fubon Life offer JPY savings insurance, holding for 5–10 years, with guaranteed interest rates of 2–3%. Suitable for low-risk investors seeking higher returns than fixed deposits.

3. JPY ETFs — capturing the appreciation trend

Yuanta 00675U, Cathay 00703 track the JPY index, available for fractional investing via broker apps. Management fee 0.4%, ideal for those bullish on JPY appreciation.

4. Forex trading — swing gains

Trade USD/JPY, EUR/JPY directly on platforms like Mitrade, with long/short options, 24-hour trading, zero commissions, and tight spreads. Suitable for experienced swing traders, but beware of risks.

Quick FAQ

Q. How much is the difference between cash rate and spot rate?

Cash rate (for physical bills/coins) is 1–2% worse than the spot rate (electronic transfer), mainly due to costs banks incur (transport, storage, exchange risk). Spot rates are closer to international market prices but settle T+2.

Q. How much JPY can I get for NT$10,000 now?

Using Taiwan Bank’s cash rate of NT$4.85, NT$10,000 ≈ 48,500 JPY; at the spot rate of NT$4.87, about 48,700 JPY, a difference of roughly 200 JPY (NT$40).

Q. What do I need to bring for in-branch exchange?

Taiwanese citizens: ID card + passport; foreigners: passport + residence permit. If booked online, bring transaction notice. Under 20 years old: need parent’s accompaniment; amounts over NT$100,000 may require source of funds declaration.

Q. What is the daily limit for foreign currency ATM withdrawals?

Varies by bank. Chinatrust and Taishin Bank: NT$150,000/day; E.SUN Bank: NT$50,000 (including debit card). RMB withdrawals are limited to NT$20,000/day/transaction. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Final advice on currency exchange

The yen has evolved from a “travel pocket money” to an “asset allocation option.” For Taiwanese investors, it offers both hedging and appreciation potential.

Core principle: Use installment exchanges + don’t leave the gains idle.

Practical approach: For travel, “online settlement + airport pickup” is most cost-effective; for investment, “online exchange + fixed deposit/ETFs” offers more flexibility; for urgent needs, consider foreign currency ATMs or in-branch exchange. After exchange, choose fixed deposits, insurance, or ETFs based on your time horizon, adding a layer of protection amid global market fluctuations.

This way, not only can you reduce travel costs, but you can also make your asset allocation smarter.