Is exchanging TWD for JPY really cost-effective? Four major methods revealed

NTD to JPY reaches 4.85, are you ready to exchange?

As of December 2025, the JPY exchange rate hits a recent high. Compared to 4.46 at the beginning of the year, the yen has appreciated by 8.7%, meaning that exchanging for JPY now already yields significant gains just from the exchange rate difference. Is now the right time to exchange JPY, and how can you do it most cost-effectively? We will clarify all the ways to exchange JPY through Taiwanese banks.

Why exchange JPY? Not just for travel

In Taiwan, JPY is always among the top three foreign currencies exchanged. But did you know? The demand far exceeds just travel needs.

Everyday life: When shopping in Tokyo, Osaka, many stores still only accept cash (credit card penetration is about 60%), and the same applies to skiing in Hokkaido or vacations in Okinawa. People purchasing Japanese cosmetics, clothing, or anime merchandise often need to pay directly in yen. Additionally, students planning to study or work in Japan usually exchange money in advance to avoid exchange rate fluctuations.

From an investment perspective, it’s even more interesting. The yen is one of the three major safe-haven currencies globally (along with USD and Swiss Franc). Japan’s economy is stable long-term, with relatively low debt. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, enough to buffer a 10% stock market decline. For Taiwanese investors, holding JPY adds a layer of hedge against Taiwan stock volatility.

Moreover, the Bank of Japan maintains ultra-low interest rates (only 0.5%), making the yen a cheap financing currency. Many arbitrage traders borrow yen at low interest, convert to USD for investment (the USD/JPY interest rate differential is up to 4.0%), and when risks rise, they close positions to buy back yen for profit.

Is it worthwhile to exchange JPY now? Short-term volatility, long-term upward trend

Simple answer: Yes, but operate in batches.

Latest data shows the yen is currently in a volatile range. The US has entered a rate-cutting cycle, which supports the yen. More importantly, the Bank of Japan (BOJ) is about to raise interest rates—recent hawkish comments from Governor Ueda have pushed market expectations to 80%, with a 0.25 bps hike to 0.75% expected at the December 19 meeting (a 30-year high), with Japanese government bond yields reaching 17-year highs of 1.93%.

USD/JPY has fallen from a high of 160 at the start of the year to 154.58 now. Short-term, it may rebound slightly to 155, but medium to long-term forecasts suggest it will stay below 150. In other words, the yen’s appreciation trend is promising.

For investors, the yen as a safe-haven asset is suitable for hedging, but short-term arbitrage positions may experience 2-5% volatility when closing. Entering in batches and avoiding all-in exchanges is a safer approach.

Four ways to exchange JPY at Taiwanese banks, how to save money?

Exchanging JPY isn’t just about going to the bank. Different methods can cost you several cups of bubble tea in difference. Here are four real options, estimated costs for exchanging 50,000 TWD.

Method 1: Bank counter direct exchange—most traditional but most expensive

Bring cash TWD to a bank branch or airport counter and exchange for cash JPY on the spot. Simple operation, but banks use “cash selling rate” (1-2% worse than spot rate), making it the most costly.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 TWD/JPY (1 TWD = 4.85 JPY). Some banks also charge a counter handling fee of 100-200 TWD.

Pros: Safe, full denominations (1,000/5,000/10,000 JPY), staff assistance on-site.
Cons: Higher exchange rate spread, limited business hours (9:00-15:30), possible handling fees.
Estimated cost: Loss of 1,500-2,000 TWD (for 50,000 TWD).
Suitable for: Inexperienced with online operations, urgent cash needs (e.g., at the airport).

Latest bank comparison (Dec 10, 2025):

• Taiwan Bank: cash sell 0.2060, no handling fee
• Mega Bank: cash sell 0.2062, no handling fee
• CTBC Bank: cash sell 0.2065, no handling fee
• E.SUN Bank: cash sell 0.2067, 100 TWD per transaction
• SinoPac Bank: cash sell 0.2058, 100 TWD per transaction

Method 2: Online currency exchange into foreign currency account—flexible batch buying, suitable for investors

Use bank app or online banking to transfer TWD into JPY and deposit into a foreign currency account, using “spot sell rate” (about 1% better than cash sell). To withdraw cash, go to counter or foreign currency ATM, paying a spread fee (~100 TWD).

Main advantage: 24/7 operation, can buy in batches to average cost. For example, when the rate is favorable, buy gradually to accumulate JPY, avoiding high points with one big exchange.

E.SUN Bank app allows withdrawal of cash after exchange, with handling fee equal to the difference between spot and cash rate, minimum 100 TWD.

Pros: Anytime operation, average cost, better rate than counter.
Cons: Need to open a foreign currency account first, withdrawal fee applies.
Estimated cost: Loss of 500-1,000 TWD (for 50,000 TWD).
Suitable for: Those experienced with forex, long-term holding of JPY, or investing in JPY deposits (current annual interest 1.5-1.8%).

Method 3: Online currency settlement, airport pickup—best before traveling

No need to open a foreign currency account. Fill in currency, amount, preferred branch, and date on bank’s website, then transfer. Afterward, bring ID and transaction notice to the counter to pick up cash. Taiwan Bank and Mega Bank offer this service, with options to pre-book airport branch pickup—no need to find ATM abroad last minute.

Taiwan Bank’s “Easy Purchase” online settlement is fee-free (pay via TaiwanPay, only 10 TWD), with about 0.5% better rate. Taoyuan Airport has 14 Taiwan Bank counters, 2 open 24 hours, so booking a day before and picking up on the day is easy.

Pros: Better rates, often no fee, convenient airport pickup.
Cons: Need to pre-book (1-3 days ahead), limited to banking hours, branch cannot be changed.
Estimated cost: Loss of 300-800 TWD (for 50,000 TWD).
Suitable for: Planned travelers who want cash at the airport before departure.

Method 4: Foreign currency ATM withdrawal—most flexible, limited locations

Use a chip-enabled bank card at foreign currency ATMs to withdraw JPY, 24/7 operation, deducting from TWD account with a cross-bank fee of about 5 TWD. Supports major currencies like JPY, but limited to about 200 machines nationwide, with fixed denominations of 1,000/5,000/10,000 JPY.

SinoPac’s foreign currency ATMs have a daily withdrawal limit of 150,000 TWD equivalent, no exchange fee. Note: Japan’s international ATM withdrawal services will be adjusted by the end of 2025, requiring Mastercard or Cirrus international cards.

Pros: Instant withdrawal, high flexibility, low cross-bank fee.
Cons: Few locations, fixed denominations, risk of sold-out cash at peak times.
Estimated cost: Loss of 800-1,200 TWD (for 50,000 TWD).
Suitable for: Those who don’t have time to visit banks or need emergency cash.

Latest withdrawal limits (from Dec 2025):

• CTBC Bank: TWD 120,000 per transaction, TWD 120,000 daily
• Taishin Bank: TWD 150,000 per transaction, TWD 150,000 daily
• E.SUN Bank: TWD 50,000 per transaction, TWD 150,000 daily

Quick reference table for 4 exchange methods

Tip: For budgets of 50k-200k TWD, we especially recommend “online settlement + airport pickup” or “foreign currency ATM” combo, balancing cost and flexibility.

After exchanging JPY, don’t let your money sit idle

Once you have JPY, don’t let it earn zero interest in your account. Based on current markets, consider four common options:

1. JPY fixed deposit—steady. E.SUN, Taiwan Bank, etc., allow online deposits starting from 10,000 JPY, with annual interest of 1.5-1.8%.

2. JPY insurance policies—medium term. Cathay, Fubon life offer savings insurance with guaranteed 2-3% interest, suitable for those avoiding frequent operations.

3. JPY ETFs—growth. Yuanta 00675U tracks the JPY index, can be bought as fractional shares via broker apps, with only 0.4% annual management fee.

4. Forex trading—swing trading. Trade USD/JPY or EUR/JPY directly on forex platforms to capture exchange rate swings. Pros: two-way trading, 24-hour market, small capital needed. Cons: requires knowledge and risk management.

While JPY is a hedge, it also fluctuates bidirectionally. BOJ rate hikes are bullish, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) may depress the yen. Always assess your risk tolerance before investing.

FAQs

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

Cash rate is the rate banks use for physical cash buy/sell, convenient but usually 1-2% worse than spot rate, plus handling fees. Spot rate is the foreign exchange market rate for settlement within two business days (T+2), close to international market price, more favorable but requires waiting.

Q: How much JPY do I get for 10,000 TWD?

Using formula: JPY amount = TWD amount × current rate. At Taiwan Bank’s cash sell rate of 4.85, 10,000 TWD ≈ 48,500 JPY. Using spot sell rate 4.87, about 48,700 JPY, difference around 200 JPY (~40 TWD).

Q: What do I need to bring for counter exchange?

ID + passport. Foreigners need passport + residence permit. Companies need business registration proof. Under 20 need parent’s consent. Large exchanges over 100,000 TWD may require source of funds declaration. Pre-booked exchanges require transaction notice.

Q: Are there limits for foreign currency ATM withdrawals?

Yes. From October 2025, some banks restrict digital account daily limits to 100,000 TWD. Regular cards typically have single transaction limits of 50,000-120,000 TWD, daily limits 120,000-150,000 TWD. Consider splitting withdrawals or using your own bank card to avoid cross-bank fees.

Conclusion

JPY is no longer just pocket money for travel. It combines hedging and small-scale investment value, a tool to hedge Taiwan stock market volatility. Whether you plan to visit Japan next year or want to hedge against TWD depreciation by moving into JPY, following the principles of “batch exchange + don’t let it sit idle” can minimize costs and maximize gains.

Beginners are advised to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then transfer JPY into fixed deposits, ETFs, or swing trading based on your needs. This way, you can enjoy cost-effective travel and add a layer of protection in global market fluctuations.