Japanese Yen Exchange Battle | Breakdown of costs across 4 major channels, the cheapest is 2,000 yuan cheaper

December 10, 2025, the TWD to JPY exchange rate has surpassed 4.85. People looking to exchange yen are not just considering travel—hedging, fixed deposits, and even swing trading have become new options. But the question is: for the same 50,000 TWD, why can the costs of exchanging at a bank counter and using an ATM differ by double?

This article uncovers all the nuances of four exchange channels, including a comparison of foreign currency account withdrawal fees across banks, helping you find the most cost-effective way to exchange currency.

Why exchange yen now?

The value of the yen goes far beyond just travel.

Travel aspect: Most stores in Tokyo, Osaka, and Hokkaido still only accept cash (credit card penetration about 60%), so purchasing agents, online shopping, studying abroad, and part-time work all require yen.

Investment perspective: The yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). Japan’s economy is stable, with low government debt, and during market turbulence, funds flow into yen as a hedge. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while the stock market fell 10%—for Taiwanese investors, exchanging for yen is like adding insurance to Taiwan stocks.

Additionally, Japan’s long-term ultra-low interest rate (0.5%) makes the yen a “funding currency,” with an arbitrage space of 4.0% against high-yield USD, which is also why many institutional investors favor this allocation.

Up 8.7% since the start of the year, is now a good time?

From 4.46 at the start of the year to 4.85 now, the TWD to JPY has appreciated by 8.7%, making the exchange gains quite substantial. In the second half of the year, Taiwan’s forex demand grew by 25%, mainly driven by travel recovery and hedging needs.

But currently, the yen remains volatile. Japan’s central bank governor Ueda Kazuo recently made hawkish comments, pushing up rate hike expectations to 80%, with the market expecting a 0.25 basis point increase at the December 19 meeting to 0.75% (a 30-year high). Japanese bond yields have hit a 17-year high of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58, with a short-term retracement to 155 possible, and medium-to-long-term forecasts below 150.

Conclusion: It’s a good time to exchange now, but consider doing it in batches to avoid converting all at once.

Four major exchange methods explained

Method 1｜Bank counter cash exchange—most traditional and most expensive

Bring cash TWD to a bank branch or airport counter to exchange for yen cash. Simple to operate, but using the “cash selling rate” (1-2% worse than the spot rate) results in the highest cost.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 TWD/JPY (meaning 1 TWD = 4.85 JPY). Some banks also charge fixed handling fees.

Advantages: Safe, full denominations (1,000, 5,000, 10,000 yen), assisted by staff.
Disadvantages: Worse exchange rate, limited business hours (weekday 9:00-15:30), possible additional fees.
Suitable for: Those unfamiliar with online operations or urgent airport needs.

Bank cash selling rates and counter fees (2025/12/10)

Method 2｜Online exchange with in-branch cash withdrawal—advanced users needed

Use bank app or online banking to convert TWD into yen and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling rate). If cash is needed, you can withdraw at an ATM or branch, but additional withdrawal fees apply (around 100 NT$).

E.SUN Bank app example: after currency exchange, withdrawing cash incurs a fee equal to the difference between spot and cash rates, minimum 100 NT$. Suitable for monitoring rates, entering in batches when the rate dips below 4.80, averaging costs.

Advantages: 24/7 operation, ability to buy in batches, better rates.
Disadvantages: Need to open a foreign currency account first, withdrawal incurs extra fees.
Suitable for: Those experienced in forex, long-term holders, can also invest in yen fixed deposits (current annual rate 1.5-1.8%).

Method 3｜Online currency settlement with airport pickup—best for office workers

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” online settlement is fee-free (pay via TaiwanPay, only 10 NT$), with about 0.5% better rates.

Pre-arranged pickup is most convenient. Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours), allowing direct pickup at the airport, saving queuing time.

Advantages: Better rates, often no fees, specify airport pickup, avoid queues.
Disadvantages: Need to book 1-3 days in advance, pickup during bank hours, branch cannot change pickup location.
Suitable for: Planned travelers who want to pick up cash at the airport.

Method 4｜Foreign currency ATM instant withdrawal—savior for office workers

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen cash, available 24/7 and cross-bank. Deducts only 5 NT$ cross-bank fee from TWD account, no exchange fee. Daily limit at E.SUN foreign currency ATMs is 150,000 NT$.

About 200 foreign currency ATMs nationwide, mainly in commercial districts and transit hubs. Note: Japan’s ATM withdrawal limits will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus).

Advantages: 24/7 instant access, flexible, low fees from TWD account.
Disadvantages: Limited locations, fixed denominations (1,000/5,000/10,000 yen), cash may run out during peak times.
Suitable for: Those with no time to visit banks or urgent needs.

Cost comparison of 4 methods (estimating for 50,000 NT$ exchange)

Deep comparison of foreign currency account withdrawal fees

If you choose “online exchange” and then withdraw cash, the foreign currency account withdrawal fee varies significantly across banks:

In-branch cash withdrawal fees

Foreign currency ATM withdrawal limits and fees (2025 new rules)

Tip: After the October 2025 update, daily limits often drop to 100,000-150,000 NT$, so consider splitting withdrawals or using your own bank card to avoid cross-bank fees. During peak times (like airports), cash may run out early, so plan ahead.

Cash rate vs spot rate—know the difference to avoid pitfalls

Cash rate: The rate banks buy/sell physical cash (notes/coins). Used for travel exchange or in-person transactions. The advantage is immediate delivery and portability; the disadvantage is that it’s usually 1-2% worse than the spot rate, plus possible fees, making it more expensive.

Spot rate: The market’s current exchange rate for settlement within two business days (T+2). Used for electronic transfers and non-cash settlement. It’s more favorable, close to international market prices, but requires waiting for T+2 settlement.

For example, with 10,000 NT$, cash rate might give about 48,500 JPY, while spot rate yields about 48,700 JPY—a difference of roughly 200 JPY (about NT$40). While small, this difference becomes significant with larger amounts.

What to do after getting yen? Don’t let your money sit idle

Once you have yen, don’t let it depreciate. Here are four options suitable for beginners:

Option 1｜Yen fixed deposit—Stable Open a foreign currency account at E.SUN or Taiwan Bank, deposit online. Minimum 10,000 yen, annual interest 1.5-1.8%. Low risk, steady returns.

Option 2｜Yen insurance policy—Mid-term holding Buy savings insurance from Cathay or Fubon Life, with guaranteed interest rates of 2-3%. Suitable for 3-5 year medium-term allocation.

Option 3｜Yen ETF (00675U, 00703)—Growth YuanDa 00675U tracks the yen index, can be bought as fractional shares via broker apps, suitable for dollar-cost averaging. Management fee 0.4%, annual returns depend on exchange rate fluctuations.

Option 4｜Yen forex swing trading—Advanced Trade yen currency pairs like USD/JPY or EUR/JPY directly. Both long and short positions, 24-hour trading, small capital needed. Suitable for experienced swing traders.

While yen is a hedge, it also fluctuates bidirectionally. Rate hikes by the Bank of Japan are positive, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) may push it down. For investment, yen ETFs diversify risk; for swing trading, proper stop-loss planning is essential.

Common questions answered

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

Using the formula: Yen amount = NT$ amount × current rate. Taiwan Bank’s rate on 2025/12/10 is about 4.85, so 10,000 NT$ ≈ 48,500 yen. Using spot rate (~4.87), about 48,700 yen—difference of 200 yen (NT$40).

Q. What to bring for in-branch exchange?

Taiwanese: ID + passport; foreigners: passport + residence permit. For online booking, also bring transaction notice. Under 20? Need parent’s consent. Large exchanges (>NT$100,000) may require source of funds declaration.

Q. What’s the ATM withdrawal limit?

Varies after the new rules in 2025. Usually around NT$150,000 per day for your own bank card, NT$50,000-100,000 cross-bank. Consider splitting or using your own bank card to avoid cross-bank fees.

Q. How to lock in the exchange rate?

During online exchange, you can set a target rate for automatic execution when the rate hits your target, so you don’t need to watch the market constantly. E.SUN app supports this.

Summary: Two principles for cost-effective exchange

Yen is no longer just travel “pocket money,” but also a hedge and small investment asset. Mastering “batch exchange + don’t leave money idle” can minimize costs and maximize gains.

Beginners should start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” experience the convenience of foreign currency accounts, then transfer yen into fixed deposits, ETFs, or swing trading based on needs. This way, traveling becomes more economical, and you gain an extra layer of protection during global market turbulence.