Japanese Yen Exchange Guide: The Most Cost-Effective Way to Exchange in 2025

Is now a good time to exchange for Japanese Yen?

By December 2025, the TWD/JPY exchange rate has risen to 4.85 (1 TWD = 4.85 JPY), up from 4.46 at the beginning of the year, an appreciation of approximately 8.7%. For Taiwanese investors, the Yen is no longer just “pocket money for travel,” but has become an asset allocation option with hedging properties.

Market observations show that in the second half of the year, Taiwan’s demand for Yen exchange increased by 25%, driven mainly by two factors: first, the recovery of the Japanese travel market; second, investors seeking asset hedging (as the Yen is one of the world’s three major safe-haven currencies, alongside the US dollar and Swiss franc).

When regional conflicts escalate (such as the Russia-Ukraine war in 2022), large capital flows into Yen as a hedge, with the Yen appreciating 8% that week, enough to buffer stock market declines. Taiwanese investors converting to Yen add a layer of protection against Taiwan stock market volatility.

The Bank of Japan is on the verge of raising interest rates—Governor Ueda Kazuo has recently signaled a hawkish stance. The market expects an 80% chance of a rate hike at the December 19 meeting, with a 0.25 basis point increase to 0.75% (a 30-year high), and Japanese bond yields have risen to a 17-year high of 1.93%. The US-Japan interest rate differential remains around 4.0%, making arbitrage trading still attractive.

Short-term outlook: USD/JPY has fallen from 160 at the start of the year to 154.58. Short-term fluctuations may bring it back to 155, but medium to long-term predictions suggest it will stay below 150. It is advisable to buy in installments to average costs and avoid all-in exchanges.

5 Key Methods for Yen Exchange

Method 1: Bank Counter Exchange

Bring cash TWD directly to a bank branch or airport counter to receive Yen cash on the spot. This is the most traditional and straightforward method but also the most costly.

Exchange rate structure: Use the “cash selling rate,” which is usually 1-2% worse than the spot market rate. For example, Taiwan Bank’s December 10 rate is about 0.2060 TWD/JPY (implying 1 TWD = 4.85 JPY). Some banks charge a fixed handling fee of NT$50-200.

Major banks’ cash selling rates and fees (2025/12/10):

• Taiwan Bank: 0.2060 (no fee)
• Mega International Bank: 0.2062 (no fee)
• CTBC Bank: 0.2065 (no fee)
• E.SUN Bank: 0.2058 (NT$100 per transaction)
• E.Sun Bank: 0.2067 (NT$100 per transaction)
• Cathay United Bank: 0.2063 (NT$200 per transaction)
• Fubon Bank: 0.2069 (NT$100 per transaction)

Advantages: Safe, reliable, full denominations (1,000, 5,000, 10,000 Yen), assistance from staff, immediate delivery.

Disadvantages: Exchange rate spread, limited business hours (9:00-15:30 on weekdays), additional handling fees.

Suitable for: Travelers unfamiliar with online operations, needing small amounts for emergencies (e.g., at the airport).

Estimated cost (NT$50,000): Loss of NT$1,500-2,000.

Method 2: Online Banking Exchange then Cash Withdrawal at Counter or ATM

Use bank app or online banking to convert TWD to Yen and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling rate). If cash is needed, choose counter withdrawal or foreign currency ATM, but additional exchange spread fees apply (from NT$100).

For example, E.SUN Bank app process: open a foreign currency account → 24-hour online exchange → select withdrawal method → pick up at counter or ATM.

Advantages: 24/7 operation, ability to buy in installments to average costs, spot rate better than cash rate, suitable for observing trends and entering when TWD/JPY is below 4.80.

Disadvantages: Need to open a foreign currency account in advance (takes about 3-5 working days), withdrawal fees (NT$5-100 cross-bank), slightly more complex operation.

Suitable for: Those experienced in forex trading, using foreign currency accounts regularly, planning to invest in Yen deposits (current annual interest 1.5-1.8%).

Estimated cost (NT$50,000): Loss NT$500-1,000.

Method 3: Online Booking for Exchange, then Pickup at Airport/Branch

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After completing online exchange, bring ID and transaction notification to pick up in person. Taiwan Bank’s “Easy Purchase” and Mega International Bank offer this service.

Taiwan Bank “Easy Purchase” features:

• Handling fee: NT$10 if paid via Taiwan Pay (almost free)
• Exchange rate advantage: about 0.5% better than cash rate
• Airport locations: 14 counters at Taoyuan Airport, 2 open 24 hours
• Booking lead time: at least 1-3 days in advance

This is the most convenient pre-departure plan, especially for planned travelers.

Advantages: Better exchange rate, often no handling fee, designated airport pickup, no banking hours constraint (24-hour counters).

Disadvantages: Need to pre-book, pickup branch cannot be changed, not suitable if no airport plan.

Suitable for: Well-planned travelers with fixed itineraries who want to pick up cash at the airport.

Estimated cost (NT$50,000): Loss NT$300-800.

Method 4: Foreign Currency ATM Instant Withdrawal

Use a chip-enabled financial card to withdraw Yen cash from foreign currency ATMs, available 24/7. Deduct NT$5 cross-bank fee from TWD account (no fee if using the same bank card). E.SUN Bank foreign currency ATMs allow up to NT$150,000 per day, with no exchange fee.

Note: Japan’s ATM withdrawal services will be adjusted by the end of 2025; Japan ATMs will only accept international cards (Mastercard/Cirrus).

Locations and denomination limits: About 200 foreign currency ATMs nationwide, mainly for major currencies (JPY, USD, EUR), with fixed denominations of 1,000/5,000/10,000 Yen. Cash may run out during peak times (especially at airports).

Advantages: Instant cash, high flexibility, low cross-bank fee (NT$5), no exchange fee, simple operation.

Disadvantages: Limited locations, fixed denominations, cash shortages at peak times, withdrawal limits.

Suitable for: Those without time to visit banks, needing emergency cash, valuing convenience.

Estimated cost (NT$50,000): Loss NT$800-1,200.

Comparison Table of Exchange Methods

2025 update: Many banks’ third-party digital accounts now have daily limits reduced to NT$100,000-150,000. Consider spreading withdrawals or using your own bank card to avoid NT$5 cross-bank fees per transaction.

Don’t Let Your Yen Sit Idle After Exchange

If you leave Yen unused for a long time, you miss out on appreciation opportunities. Here are 4 options suitable for small-scale beginners:

1. Yen Fixed Deposit — Stable returns
E.SUN Bank, Taiwan Bank online foreign currency accounts, minimum NT$10,000 deposit, annual interest 1.5-1.8%. Low risk, suitable for conservative investors.

2. Yen Insurance Policy — Medium-term lock-in
Cathay Life, Fubon Life offer Yen-denominated savings insurance, guaranteed interest 2-3%, suitable for 3-5 year holding plans.

3. Yen ETF — Growth allocation
Yuanta 00675U tracks Yen index, management fee 0.4%, can be bought as fractional shares via Taiwan broker apps. Compared to direct Yen holding, ETFs offer leverage and diversification.

4. Forex Swing Trading — Advanced trading
Trade USD/JPY or EUR/JPY pairs, profit from 24-hour Yen rate fluctuations. Pros: long/short, zero commission, low spread; cons: higher risk.

Common Questions About Yen Exchange

Q1: What’s the difference between cash rate and spot rate?

Cash Rate: The buy/sell rate banks offer for physical cash (banknotes/coins). It’s convenient for immediate cash exchange but typically 1-2% worse than the spot market rate, plus handling fees. Suitable for travel cash exchange or on-site transactions.

Spot Rate: The exchange rate for settlement within two business days (T+2) in the forex market, used for electronic transfers, interbank settlements, import/export, or personal foreign currency accounts. Closer to international market price but requires T+2 settlement.

Q2: How much Yen do I get for NT$10,000?

Based on Taiwan Bank’s December 10, 2025 rate:

• Cash selling rate: about NT$0.2060/TWD, implying 1 TWD = 4.85 JPY
• NT$10,000 × 4.85 ≈ 48,500 Yen (cash rate)
• Using spot rate (~4.87), about 48,700 Yen, difference of ~200 Yen (NT$40).

Q3: What ID do I need for counter exchange?

Local Taiwanese: ID card + passport
Foreigners: Passport + residence permit
Company: Business registration documents
Pre-booked: ID + transaction notification
Special cases: Under 20 need parent consent; large amounts (>NT$100,000) may require source declaration.

Q4: What is the limit for foreign currency ATM withdrawals?

Bank-specific limits (as of October 2025):

2025 update: Many banks’ digital third-party accounts now have daily limits of NT$100,000-150,000. Consider splitting withdrawals or using your own bank card to avoid NT$5 cross-bank fee per transaction.

Summary: Three Key Principles for Smart Yen Exchange

The Yen has evolved from “travel pocket money” to “hedging + investment asset.” Whether you’re planning a trip to Japan next year or seeking to hedge against TWD depreciation, following these principles can minimize costs and maximize returns:

Principle 1: Use installment exchange to spread risk — Don’t exchange all at once. Leverage 24-hour online banking to buy when rates are low (TWD/JPY below 4.80), averaging costs.

Principle 2: Choose low-cost channels — Based on amount and timing, select (small emergency ATM, airport pre-book, long-term investment via online banking). For NT$50,000, you can save NT$700-1,700 in costs.

Principle 3: Don’t let your Yen sit idle — Convert Yen into fixed deposits (interest 1.5-1.8%), ETFs, or swing trading to keep funds growing. Not only for travel but also to add a layer of protection during global market turbulence.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then explore deposits, ETFs, or swing trading as experience grows. This way, Yen becomes a true asset allocation option, not just a spending currency.