Japanese Yen Exchange Guide: 4 Must-Know Tips for the Most Cost-Effective Strategy in 2025

Is it worth exchanging for Japanese Yen now? Key exchange rate figures to watch

As of December 10, 2025, the Taiwanese dollar (TWD) against the Japanese Yen (JPY) has risen to 4.85, meaning 1 TWD can exchange for 4.85 JPY. Compared to 4.46 at the beginning of the year, this is an appreciation of over 8.7%, making currency exchange gains quite attractive. Especially under the pressure of TWD depreciation, this has become a hedging option for many investors.

The Bank of Japan (BOJ) Governor Ueda Kazuo recently made hawkish comments, boosting expectations of rate hikes to 80%, with a projected increase to 0.75% at the December 19 meeting (a 30-year high). USD/JPY has fallen from a high of 160 at the start of the year to 154.58, with short-term fluctuations possibly returning to 155, but medium to long-term forecasts suggest it will stay below 150. Japan maintains ultra-low interest rates (only 0.5%), making the Yen a “funding currency,” with many investors borrowing low-interest Yen to arbitrage into higher-yield USD.

Is it worthwhile? Yes, but operate in batches. In the second half of the year, Taiwan’s currency exchange demand increased by 25%, mainly driven by tourism recovery and hedging needs. Although the Yen is one of the three major safe-haven currencies (alongside USD and Swiss Franc), there is risk of two-way volatility. It is recommended to exchange in batches to avoid converting all at once.

5 Major Uses of Yen: Travel, Investment, and More

Daily Life

• Travel expenses: Shopping in Tokyo, Osaka; skiing in Hokkaido; Okinawa vacations mostly cash-only (credit card penetration only 60%)
• Purchasing and online shopping: Buying Japanese cosmetics, clothing, anime merchandise, often requiring direct Yen payments
• Studying, working holidays: Long-term residents should exchange in advance to avoid sudden fluctuations increasing costs

Financial Investment Perspective

The Yen has two main attributes as a long-term global safe-haven currency:

Stable Hedging Property: Japan’s economy is stable with low debt, and during market turbulence, funds flow into Yen for safety. For example, during the 2022 Russia-Ukraine conflict, Yen appreciated 8% in a week, buffering a 10% stock market decline. For Taiwanese investors, it can hedge Taiwan stock market fluctuations.

Interest Rate Arbitrage Space: The US-Japan interest rate differential is 4.0%. Many investors borrow low-interest Yen to buy higher-yield USD investments, then close positions when risks rise, buying back Yen.

Comparing 4 Methods to Exchange for Yen: Cost Differences Over NT$1,000

Many think exchanging Yen is just going to the bank, but the price difference alone can cost several cups of bubble tea. Here are four channels with real rates for comparison.

Method 1: Bank Counter Cash Exchange — Traditional but Costly

Bring cash in TWD to a bank branch or airport counter to buy Yen cash. Simple to operate, but uses the “cash selling rate” (about 1-2% worse than the spot rate), resulting in higher overall costs. Recommended only as a backup.

For example, Taiwan Bank’s rate on December 10, 2025, at 9:18 AM, is about 0.2060 TWD per Yen (roughly 4.85 Yen per NT$). Some banks also charge fixed handling fees.

Advantages: Safe, full denominations (1,000, 5,000, 10,000 Yen), staff assistance on-site, bring ID/passport

Disadvantages: Worse exchange rate, limited business hours (9:00-15:30), possible additional fees

Suitable for: Those unfamiliar with online methods, small urgent exchanges (e.g., at the airport)

Comparison of cash selling rates and counter fees (updated 2025/12/10):

Method 2: Online Currency Exchange + Counter Pickup — Balanced Flexibility

Use online banking or app to convert TWD into Yen and deposit into a foreign currency account, using “spot selling rate” (about 1% better than cash selling). If cash is needed, withdraw at counters or foreign currency ATMs, but will incur exchange spread and handling fees (starting around NT$100).

For example, after currency exchange via E.SUN Bank app, withdrawing Yen cash incurs a fee equal to the difference between spot and cash rates, minimum NT$100. Suitable for observing exchange rate trends and entering in batches when the rate is low (e.g., TWD/JPY below 4.80).

Advantages: 24-hour operation, allows averaging costs through batch purchases, better rates, can invest in Yen fixed deposits (current annual rate ~1.6%)

Disadvantages: Need to open a foreign currency account first, withdrawal incurs additional fees (NT$5-100 cross-bank)

Suitable for: Those experienced in forex, frequent foreign currency account users

Method 3: Online Currency Settlement + Airport Pickup — Best Before Travel

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After transfer, bring ID and transaction notice to pick up in person. Taiwan Bank and Mega Bank offer this service, with appointment options at airport branches.

Taiwan Bank’s “Easy Purchase” online settlement is fee-free (pay NT$10 via Taiwan Pay), with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours). Bring ID and transaction notice to pick up.

Advantages: Better rates, often no fees, can choose airport pickup, avoid queues

Disadvantages: Need to book in advance (1-3 days), pickup only during bank hours, branch location cannot be changed

Suitable for: Planned travelers who want to pick up cash at the airport

Method 4: Foreign Currency ATMs — 24/7 Instant Withdrawal

Use chip-enabled bank cards at foreign currency ATMs to withdraw Yen cash, supporting 24-hour and cross-bank operations (NT$5 cross-bank fee). Mainly for major currencies like Yen, but limited locations (~200 nationwide).

Fubon Bank’s foreign currency ATMs allow withdrawal from NT$ accounts, with a daily limit of NT$150,000, no exchange fee. Note: Japan ATM withdrawal services will be adjusted by end of 2025, requiring international cards (Mastercard/Cirrus).

Advantages: Instant withdrawal, flexible, low cross-bank fees, no time restrictions

Disadvantages: Limited locations and denominations (fixed 1,000/5,000/10,000 Yen), cash may run out during peak times

Suitable for: Those with no time to visit banks, needing urgent cash

Cost comparison table for 4 methods

Based on exchanging NT$50,000 (data as of December 2025):

Quick FAQs

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

Cash Rate is the rate banks offer for physical cash (banknotes/coins), used for travel exchange or on-site transactions. It’s convenient for immediate cash but usually 1-2% worse than the spot rate, with higher costs.

Spot Rate is the foreign exchange market rate for settlement within two business days (T+2), mainly used for electronic transfers or non-cash transactions. It’s more favorable (closer to international market prices) but involves T+2 settlement.

Q: How much Yen can I get with NT$10,000?

Calculation: 【JPY = NT$ amount × current rate (TWD/JPY)】

Using Taiwan Bank’s rate on December 10, 2025, at 9:18 AM, about 4.85 (1 NT$ = 4.85 Yen), NT$10,000 can get approximately 48,500 Yen.

Using the spot rate (~4.87), about 48,700 Yen, a difference of roughly 200 Yen (about NT$40).

Q: What documents are needed to pick up Yen cash at the counter?

For foreign currency cash transactions, locals need to bring ID + passport; foreigners need passport + residence permit. If exchanging via company, bring business registration documents.

If pre-booked online (online settlement), also bring transaction notice. Under 20 years old, need parental consent and ID; large exchanges (over NT$100,000) may require source of funds declaration.

Q: What is the limit for foreign currency ATM withdrawals in Taiwan?

Limits vary by bank and are adjusted under new regulations (from October 2025, many banks tighten anti-fraud measures, third-party digital accounts limit to NT$100,000/day):

It’s recommended to diversify withdrawals or use your own bank card to avoid cross-bank fees (NT$5 per transaction). During peak times (like airports), cash may run out quickly, so plan ahead.

After exchanging Yen: 4 investment options to avoid idle money

Don’t leave your Yen sitting idle without earning interest. Here are four common options suitable for small-scale beginners:

Yen Fixed Deposit: Stable, open online by E.SUN or Taiwan Bank, minimum NT$10,000, annual interest 1.5-1.8%

Yen Insurance Policy: Medium-term holding, buy savings insurance from Cathay or Fubon Life, guaranteed interest rate 2-3%

Yen ETFs: Growth-oriented, e.g., Yuanta 00675U tracking Yen index, can buy fractional shares via broker app, suitable for dollar-cost averaging, annual management fee 0.4%

Forex Swing Trading: Trade USD/JPY or EUR/JPY to capture exchange rate fluctuations, both long and short, 24-hour trading

While Yen is a safe haven, global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) may depress its value. Diversify your holdings or use ETFs to spread risk.

Final Reminder: The Golden Rules of Yen Exchange

In summary, Yen is no longer just “pocket money” for travel but an asset with hedging and investment value.

Two key principles to minimize costs and maximize returns:

1. Batch exchange: Don’t convert all at once; observe rate fluctuations, enter in stages at low points, average your cost
2. Don’t just convert and leave: Move into fixed deposits, ETFs, or swing trading to generate passive income from Yen

For beginners, start with the simplest options like “Taiwan Bank online settlement + airport pickup” or “instant foreign currency ATM withdrawal,” then gradually upgrade to fixed deposits, ETFs, or forex trading. This way, you can enjoy more cost-effective travel and add a layer of protection during market turbulence.