Is 2025 Yen exchange profitable? An article to understand the latest exchange rates and 4 major conversion methods

Did you know? The Taiwan dollar to Japanese yen has already risen to 4.85, nearly a 9% appreciation from the beginning of the year at 4.46. This not only means higher costs for traveling abroad but more importantly — now is a great time to exchange for Japanese yen.

But the key question is: how to exchange without losing a big chunk to exchange rate differences?

Is it more cost-effective to exchange USD to JPY or TWD to JPY?

Many people don’t realize how big the difference in exchange costs can be. Going directly to the bank for cash buy/sell vs. online foreign exchange, the rate difference alone can be 1-2%, which could mean a loss of 800-1000 NT$ when exchanging 50,000 NT$.

Even more interesting, over this year, not only has the TWD depreciated. The USD against the yen has also fallen from a high of 160 at the start of the year to around 154.58 now. If you hold USD and want to convert to JPY, the exchange rate trend is equally important — because the mid-term USD/JPY forecast is below 150, meaning USD holders may face depreciation risk.

In comparison, the window for exchanging TWD to JPY is still quite favorable. By the end of 2025, the Bank of Japan is expected to raise interest rates to 0.75% (a 30-year high), which will strengthen the yen’s safe-haven appeal and support the exchange rate.

Is it really worth exchanging JPY now?

Answer: Yes, but in batches.

According to the latest market data, Taiwan’s foreign exchange demand in the second half of the year has increased by 25%, mainly driven by the recovery of outbound travel and asset hedging needs. The yen is one of the three major safe-haven currencies alongside USD and CHF in the global financial market. During market turbulence (like last year’s Russia-Ukraine conflict), the yen appreciated 8% in a week, enough to offset a 10% decline in the stock market.

For Taiwanese investors, this means exchanging for yen is not just for leisure spending but also a tool to hedge against Taiwan stock market volatility. And with the TWD under continued depreciation pressure, gradually converting to yen allows you to lock in exchange gains.

The 4 most practical ways to exchange JPY in Taiwan

Method 1: Traditional bank counter exchange

Visit a bank or airport to exchange cash directly — the simplest process. But also the most expensive — banks use “cash selling rates,” which are 1-2% worse than the spot market rate, plus possible handling fees.

For example, Taiwan Bank’s quote on December 10, 2025, is about 0.2060 NT$/JPY (1 NT$ = 4.85 JPY). E.Sun, Taipei Fubon, and others quote between 0.2062-0.2069, with additional handling fees of 100-200 NT$ per transaction.

Exchanging 50,000 NT$ this way could result in a loss of about 1,500-2,000 NT$.

Suitable for: travelers unfamiliar with online operations or needing urgent cash (e.g., at the airport).

Method 2: Online FX exchange + counter or ATM withdrawal

A mid-cost option. First, use bank app or online banking to convert at the “spot sell rate” (about 4.87) into JPY, deposit into a foreign currency account, then withdraw cash when needed.

Advantages: better rates than cash purchase, 24/7 operation, and ability to average costs over multiple transactions. Disadvantages: need a foreign currency account, and withdrawal fees start at 100 NT$.

Exchanging 50,000 NT$ might incur a loss of 500-1,000 NT$.

Typically suitable for those with FX investment experience or planning to deposit JPY as fixed-term deposits (current annual rate 1.5-1.8%) without urgent cash needs.

Method 3: Online FX settlement + airport pickup (most recommended)

Taiwan Bank and Mega International Bank offer this service — no need for a foreign currency account. Fill in the amount and pickup branch online, complete the FX settlement, then bring ID and transaction notice to the counter to collect cash.

Taiwan Bank’s “Easy Purchase” online FX settlement nearly waives handling fees (pay only 10 NT$ via Taiwan Pay), with favorable rates. The best part: you can specify pickup at 14 Taiwan Bank branches at Taoyuan Airport (including 2 open 24 hours), so you can get cash directly before departure.

Exchanging 50,000 NT$ could result in a loss of 300-800 NT$.

Ideal for planned travelers, but remember to book 1-3 days in advance.

Method 4: Foreign currency ATM withdrawal anytime

Use a chip-enabled bank card at foreign currency ATMs to withdraw JPY cash, supported 24/7, cross-bank withdrawals (additional fee only 5 NT$). For example, at E.Sun Bank’s foreign currency ATMs, the daily limit is 150,000 JPY from a NT$ account, with no extra FX fee.

Disadvantages: limited locations (~200 nationwide), fixed denominations (1000/5000/10000 JPY), and possible cash shortages during peak times.

Exchanging 50,000 NT$ might incur a loss of 800-1,200 NT$.

Suitable for urgent needs or when you don’t have time to visit a bank, but avoid last-minute withdrawals to prevent unnecessary trips.

Quick reference: Bank cash exchange rates as of December 10, 2025

(Always check the official bank websites for the latest rates)

Taiwan Bank cash sell: 0.2060 NT$/JPY, no fee; Mega Bank: 0.2062, no fee; CTBC Bank: 0.2065, no fee; First Bank: 0.2062, no fee; E.Sun Bank: 0.2067, 100 NT$ per transaction; E.Sun Bank (cash ATM): 0.2058, 100 NT$ per transaction; Hua Nan Bank: 0.2061, no fee; Cathay United Bank: 0.2063, 200 NT$ per transaction; Taipei Fubon Bank: 0.2069, 100 NT$ per transaction.

From the fee perspective, Taiwan Bank and Hua Nan Bank are the most generous, but their rates may not be the best. E.Sun and Taipei Fubon offer better rates but with higher fees. That’s why many prefer online FX settlement — saving on fees and getting better rates.

Next step for yen investment: don’t let your exchanged money go to waste

After exchanging for yen, instead of letting the money sit in your account earning zero interest, consider future allocations.

Yen fixed deposits are the safest choice, with annual rates of 1.5-1.8%, starting from 10,000 JPY deposits. Compared to TWD fixed deposits at 0.8%, this yield is quite attractive.

Yen insurance policies (savings insurance) offer guaranteed 2-3% interest. Cathay and Fubon Life have similar products, suitable for medium-term holding (3-5 years).

For growth-oriented investors, consider JPY ETFs like Yuanta 00675U or 0070, tracking the yen index, supporting fractional shares, suitable for regular investment.

If interested in FX fluctuations, you can also trade FX directly (e.g., USD/JPY, EUR/JPY), with 24-hour buy/sell options and small capital requirements.

The BOJ’s rate hikes are positive, but global recession risks and geopolitical conflicts (Taiwan Strait, Middle East) could still weaken the yen. Diversification and not relying on a single asset class is the smart way to invest.

Common Q&A

Q: What’s the difference between cash exchange rate and spot rate?
A: Cash rate is the bank’s quote for physical bills/coins, usually 1-2% worse than the spot rate, but available immediately; spot rate is the FX market’s T+2 settlement price, more favorable but requires waiting. In short, cash rate is the premium paid for instant cash.

Q: How much JPY can I get with 10,000 NT$?
A: Using Taiwan Bank’s cash sell rate of 4.85, about 48,500 JPY; with the spot rate of 4.87, about 48,700 JPY — a difference of roughly 200 JPY (about 40 NT$).

Q: What should I bring to the counter?
A: For locals: ID card + passport; for foreigners: passport + residence permit. If booking online, also bring transaction notice. For amounts over 100,000 NT$, you may need to declare source of funds. Minors under 20 need a parent present.

Q: What’s the daily withdrawal limit at foreign currency ATMs?
A: After 2025 reforms, limits vary by bank. CTBC: equivalent of 120,000 NT$ per day; Taishin: 150,000 NT$; E.Sun: 150,000 NT$ (including debit). Use your bank’s card to avoid cross-bank fees (5 NT$). Plan ahead during peak times to avoid cash shortages.

Final advice

The yen is no longer just for travel spending but also a valuable asset for hedging and investment. Whether converting USD or TWD to JPY, timing and method are key.

Beginners are recommended to start with “Taiwan Bank online FX settlement + airport pickup” or “foreign currency ATM,” which are cost-effective and easy. Experienced investors can consider batch conversions, multiple exchanges to average costs, and pairing with yen fixed deposits or ETFs to generate returns on idle funds.

This approach not only makes next year’s Japan trip more affordable but also adds a layer of protection amid global market turbulence.