Complete Guide to Yen Exchange: Breakdown of 4 Methods and the Most Cost-Effective Timing in 2025

Yen appreciation of 8.7%, is it now a good time to exchange?

As of December 10, 2025, the TWD/JPY exchange rate is about 4.85, meaning 1 TWD can be exchanged for 4.85 JPY. Compared to 4.46 at the beginning of the year, the yen has appreciated by 8.7% in just one year, which is a positive signal for those planning to exchange currency. But the real issue is: with the same 50,000 TWD, choosing the wrong exchange method could cost you 1,500-2,000 NT dollars, equivalent to wasting a nice Japanese meal.

According to the latest observations, Taiwan’s demand for currency exchange in the second half of 2025 has grown by 25%, driven by the recovery of tourism and hedging strategies. This indicates that not only tourists are exchanging yen, but more and more investors are using the yen as a hedge against Taiwan stock market volatility.

Why is it worth exchanging yen? It’s not just about travel

Three reasons beyond travel shopping

Everyday life: The reality of the cash kingdom
Tokyo, Osaka, Hokkaido—many Japanese stores have only about 60% credit card acceptance, so cash remains mainstream. Purchasing agents, online auctions, study abroad, part-time work budgets—all require planning for yen in advance.

Financial markets: One of the three major safe-haven currencies
The yen is ranked alongside the US dollar and Swiss franc as a global safe-haven currency. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, while the stock market fell by 10%—this demonstrates the yen’s protective value. For Taiwanese investors, holding some yen can serve as a buffer during Taiwan stock market fluctuations.

Interest rate differential trading mechanism
The Bank of Japan has maintained an ultra-low interest rate (currently 0.5%) for a long time, making the yen a “funding currency.” Investors borrow low-interest yen to buy higher-yielding US dollars, with a US-Japan interest rate spread of up to 4%. When risks increase, closing arbitrage trades can boost demand for the yen.

Four ways to exchange TWD for JPY: Cost comparison

Method 1: Bank counter exchange—most traditional, highest cost

Bring cash TWD to a bank or airport counter to exchange for yen cash on the spot. Looks simple, but hides the biggest cost trap.

Banks use “cash selling rates,” which are about 1-2% worse than the spot rate. For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 TWD/JPY (roughly 4.85 JPY per TWD). Some banks also charge fixed handling fees, making the total cost for 50,000 TWD around 1,500-2,000 NT dollars.

Suitable for: Small, urgent needs (like at the airport), or those unfamiliar with online operations.

Method 2: Online currency exchange + cash pickup—flexible, in batches

Use bank app or online banking to convert TWD into JPY in a foreign currency account, enjoying an “offered rate” (about 1% better than cash selling rate). If you need cash, go to the counter or foreign currency ATM to withdraw, incurring additional exchange spread fees (from about 100 NT).

Advantages include 24-hour operation and the ability to buy in batches to average costs. Many investors buy continuously at low points (e.g., when TWD/JPY is below 4.80). Total cost for 50,000 TWD is about 500-1,000 NT.

Note: You need to open a foreign currency account first; some banks charge cross-bank withdrawal fees of 5-100 NT. After exchange, you can directly deposit into yen fixed deposits, with current annual interest rates around 1.5-1.8%, effectively earning while exchanging.

Suitable for: Those with forex investment experience, using foreign currency accounts regularly, or wanting to buy in batches.

Method 3: Online currency exchange + airport pickup—best for pre-departure

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

Taiwan Bank’s “Easy Purchase” online exchange is especially advantageous: no handling fee (only 10 NT if paid via TaiwanPay), about 0.5% better rate, and 14 pickup points at Taoyuan Airport (including 2 24-hour locations). Estimated cost for 50,000 TWD is about 300-800 NT.

This is ideal for planned travelers—reserve 1-3 days in advance, pick up at the airport on departure, saving costs and time. The only limitation is that branches cannot modify the reservation, so confirm beforehand.

Suitable for: Travelers planning trips, wanting to withdraw at the airport, or those who can book in advance.

Method 4: Foreign currency ATM 24-hour withdrawal—quick emergency

Use a chip-enabled bank card at a foreign currency ATM to withdraw yen cash. 24/7 operation, cross-bank fee only 5 NT. SinoPac’s foreign currency ATMs support direct withdrawal from TWD accounts, with a daily limit of 150,000 NT, no extra exchange fee. Estimated cost for 50,000 TWD is about 800-1,200 NT.

However, foreign currency ATM locations are limited (about 200 nationwide), and denominations are fixed at 1,000, 5,000, 10,000 yen, so flexibility is limited. During peak times (especially near airports), cash may run out, so last-minute plans might fail.

Suitable for: Those with no time to visit branches, needing quick, temporary cash.

Cost comparison table for 50,000 TWD exchange

Is now a good time to exchange yen? The central bank’s rate hike is key

The Bank of Japan Governor Ueda Kazuo recently signaled a hawkish stance, with market expectations that the December 19 meeting will raise rates by 0.25 bps to 0.75% (a 30-year high), with Japanese bond yields reaching 17-year highs of 1.93%.

From a technical perspective, USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now. Short-term, it may rebound to 155, but medium to long-term forecasts suggest below 150. The rate hike expectations support the yen’s strength, combined with the US rate cut cycle, increasing the yen’s safe-haven appeal.

Advice: Exchange in batches. Short-term yen volatility is 2-5%. Full conversion at once carries risks. Spreading out purchases can average costs and avoid sudden exchange rate jumps.

After exchanging yen: let your money keep working

Once you have yen, idle and earning no interest, here are four investment options:

1. Yen fixed deposit (conservative)
Open accounts with E.SUN, Taiwan Bank, etc., starting from 10,000 yen, with annual interest rates of 1.5-1.8%. Lowest risk, suitable for capital preservation.

2. Yen insurance policies (medium-term hold)
Cathay, Fubon life savings insurance, with guaranteed rates of 2-3%, locking in returns, suitable for medium-term funds planning.

3. Yen ETFs (growth-oriented)
Yuanta 00675U tracks the yen index, can be bought as fractional shares via broker apps, suitable for regular investment and diversification against exchange rate fluctuations.

4. Forex trading USD/JPY (swing trading)
Trade yen directly on forex platforms, supporting 24-hour trading, long and short positions, low capital requirements, ideal for short-term rate movements, but with higher risk.

FAQs

Q: How much is the difference between cash rate and spot rate?
Cash rate is used for physical currency transactions, usually 1-2% worse than spot. Spot rate is used for electronic transfers (T+2 settlement), closer to international market prices. For example, converting 10,000 TWD at spot rate yields about 200 more yen (roughly 40 NT).

Q: What documents are needed to exchange foreign currency?
Taiwanese need ID + passport; foreigners need passport + residence permit. Under 20 requires a parent. For online booking, transaction notice is also needed.

Q: Is there a daily limit for foreign currency ATM withdrawals?
From October 2025, limits are adjusted to 100,000-150,000 NT per day per bank. Use your own bank card to avoid cross-bank fees. Plan ahead during peak times to prevent cash shortages.

Currency exchange tip: How to compare 60 euros to TWD

If you also follow euro and yen, 60 euros is roughly equivalent to 1,950-2,000 TWD (EUR/TWD about 32-33). To convert this amount to yen, online currency exchange is more cost-effective, avoiding airport cash exchange rates that may be less favorable.