Yen investment is booming: The secret to currency exchange plans from 50,000 to 500,000

The pressure of TWD depreciation in 2025 continues, and the hot topic of JPY exchange rate is rising rapidly. The TWD/JPY has surged to 4.85, up 8.7% from 4.46 at the beginning of the year. This is no longer just a “travel pocket money” concept.

But the question is: Is exchanging for JPY really cost-effective? How can you exchange to minimize costs? We analyze Taiwan’s four major currency exchange channels with real data to show you.

Why is it worth exchanging for JPY? Not just for travel

Many people think exchanging foreign currency is just exchanging for JPY, but there is actually financial logic behind it.

The solid strength of safe-haven currencies

The Japanese Yen is listed alongside the US dollar and Swiss franc as one of the world’s three major safe-haven currencies. During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week, while the stock market fell 10%—this demonstrates the power of safe-haven assets. For Taiwanese investors, holding JPY not only protects assets but also hedges against Taiwan stock market volatility.

In comparison, exchanging for euros is also a major reserve currency, but under geopolitical risks, the hedging function of the Yen is more prominent.

Opportunity cost of arbitrage trading

The Bank of Japan maintains an ultra-low interest rate of 0.5%, while the US federal funds rate is over 4.5%. This interest rate differential of 0.25 percentage points attracts global capital for arbitrage. Industry forecasts suggest the BOJ will raise rates to 0.75% in December (a 30-year high), with market expectations reaching 80%, supporting Yen appreciation.

Practical coverage across all scenarios

From shopping in Tokyo (cash accounts for 40%), purchasing Japanese cosmetics and medicines, to studying abroad and working part-time, the demand for cash JPY is high. This provides ample reason to enter the market at lower points.

The four most common currency exchange methods used by Taiwanese, cost comparison

There are four common ways to exchange currency. We tested the cost difference with NT$50,000.

First type: Over-the-counter cash exchange (traditional but costly)

Bring NT$ to a bank or airport counter to exchange for cash JPY. This is the most used method but also the most expensive.

The reason is simple—banks use the “cash selling rate,” which is 1-2% worse than the international market rate. For example, Taiwan Bank’s cash selling rate is about 0.2060 (i.e., NT$1 = 4.85 JPY), plus handling fees (some banks charge NT$100-200 per transaction).

Exchanging NT$50,000 this way results in a loss of NT$1,500-2,000 just on the exchange margin, effectively giving the bank free money.

Suitable for: Urgent small amounts before travel, small withdrawals, unfamiliar with online operations.

Second type: Online currency settlement, pick up at airport (best choice before departure)

This has become Taiwan’s new favorite in 2024. The process: fill in currency, amount, pickup branch, and date via bank app, then bring ID and transaction notification to the counter to pick up cash.

Taiwan Bank’s “Easy Purchase” service is completely free (using Taiwan Pay costs only NT$10 handling fee). The exchange rate is “spot selling,” which is 0.5-1% better than cash exchange rates. Taoyuan Airport has 14 Taiwan Bank branches, including 2 open 24 hours, making reservations very convenient.

With the same NT$50,000, online settlement costs only NT$300-800, saving more than half.

Suitable for: Travelers with planned itineraries, those wanting to withdraw directly at the airport, readers with time to make reservations.

Third type: Foreign currency ATM withdrawal (24/7 unlimited)

Use a financial card with chip to withdraw JPY at foreign currency ATMs, supporting interbank transactions with only NT$5 fee. E.SUN Bank’s foreign currency ATMs have a daily limit of NT$150,000 equivalent, no exchange fee, and are available 24 hours.

This method is the most flexible, suitable for urgent needs. The downside is limited ATM locations (about 200 nationwide), and cash may run out during peak times (airports, stations).

Cost is between over-the-counter and online settlement, approximately NT$800-1,200 (for NT$50,000).

Suitable for: No time for counter exchange, need to withdraw anytime, amounts within daily limit.

Fourth type: Online currency exchange to foreign currency account (investment option)

Open a foreign currency account at the bank, use app to exchange NT$ to JPY, and deposit into the account. This method uses “spot selling” rate, offering the best exchange rate, but if you want to withdraw cash, there is an additional handling fee (around NT$100 or more).

E.SUN Bank’s approach is suitable for those with forex investment experience. After exchange, you can directly buy JPY fixed deposits (annual interest rate 1.5-1.8%) or JPY ETFs, letting idle funds generate interest.

Combining NT$50,000 exchange + fixed deposit costs only NT$500-1,000.

Suitable for: Long-term holding of JPY, investing in JPY fixed deposits or ETFs, those willing to diversify operations.

Comparison table of four methods (tested December 2025)

Is now really a good time to exchange for JPY?

Short-term fluctuations vs long-term trend

As of December 10, TWD/JPY is 4.85, USD/JPY around 154-155. Expectations of BOJ rate hikes are rising, US bond yields hit a 17-year high of 1.93%, supporting the Yen’s short-term strength.

However, the market is also waiting for the impact of global arbitrage unwinding. Forecasts suggest that in the short term (Jan-Feb), the rate may test 155, but in the medium to long term (after March), JPY will find support below 150.

Recommended strategy

Avoid exchanging all at once. Gradual entry is key—allocate NT$50,000-100,000 monthly to average costs. Especially around 4.80-4.90, consider adding moderately.

For those exchanging for investment purposes, it is advisable to reserve 30% of funds for further pullbacks.

Four exit options after exchanging for JPY

Once you have JPY, don’t let the money sit idle—consider these four directions.

1. JPY fixed deposit: steady income
E.SUN, Taiwan Bank foreign currency accounts start from NT$10,000, with annual interest rates of 1.5-1.8%. This is the simplest choice, suitable for risk-averse investors.

2. JPY insurance: medium-term appreciation
Cathay, Fubon life insurance’s JPY savings insurance offers guaranteed interest rates of 2-3%, suitable for 3-5 year holding plans.

3. JPY ETFs: growth allocation
Yuanta 00675U tracks the JPY index, with an annual management fee of 0.4%, available for fractional investment. More flexible than fixed deposits and lower risk than forex trading.

4. USD/JPY forex trading: swing profits
Trade USD/JPY or EUR/JPY via platforms like Mitrade, with zero commissions, low spreads, and 24-hour trading. Suitable for experienced swing traders.

The best timing to exchange for euros is similar—also at a policy turning point—but currently, JPY is more attractive.

Quick FAQs

Q: How much is the difference between cash rate and spot rate?
Cash rate is the bank’s quote for physical banknotes, 1-2% worse than the spot rate (about NT$200-400 per NT$10,000). Spot rate is for electronic transfers, closer to international market prices.

Q: How much JPY can NT$10,000 buy now?
Using the cash selling rate of 4.85, NT$10,000 = 48,500 JPY. Using the spot rate of 4.87, NT$10,000 = 48,700 JPY.

Q: What documents are needed for counter exchange?
ID card + passport (for locals) or passport + residence permit (for foreigners). For amounts over NT$100,000, declare source of funds. Under 20 years old requires parental accompaniment.

Q: Daily withdrawal limit for foreign currency ATMs?
CTBC: NT$120,000; Taishin: NT$150,000; E.SUN: NT$50,000 in cash. Use your own bank card to avoid NT$5 interbank fee and to distribute withdrawals to prevent stockouts.

Summary

The Yen has evolved into an asset that combines practical travel use and financial hedging. The key is mastering “gradual exchange + timely allocation.”

Beginners are advised to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then shift to fixed deposits, ETFs, or forex swing trading as needed. This way, you can enjoy cost-effective travel and add a layer of protection during market volatility.

Next step: Open your bank app, check the current spot rate, and decide whether to initiate your first JPY position this week.