How to get the best exchange rate for Japanese Yen? A comprehensive breakdown of banks, ATMs, and online platforms

Is it worth exchanging for Japanese Yen? Let’s look at these three reasons first

When it comes to foreign currency exchange, Taiwanese people most often think of the Japanese Yen. But it’s not just for traveling abroad—ranging from daily expenses to financial allocation, the Yen plays an important role.

Travel and Daily Expenses

Cash payments in Japan still account for the majority (credit card penetration is only 60%). Whether shopping in Tokyo, skiing in Hokkaido, or vacationing in Okinawa, cash remains king. Plus, with a large community of Japanese purchasing agents and online shoppers, many people need to pay directly in Yen. Those planning to study or work in Japan in the future will also exchange currency in advance to lock in costs.

Hedging Asset Property

The Yen ranks among the world’s three major safe-haven currencies (alongside USD and Swiss Franc) due to Japan’s stable economy and sound debt structure. During market turbulence, funds flow into Yen for safety—during the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week, while the stock market fell 10%. For Taiwanese investors, exchanging Yen isn’t just for leisure; it also serves as a hedge against Taiwan stock market risks.

Arbitrage Trading Opportunities

Japan has maintained ultra-low interest rates (around 0.5%) for a long time, making the Yen a “funding currency.” Many investors borrow Yen at low interest, convert to higher-yield USD (the USD/JPY interest rate differential is about 4%), and then close the position to buy back Yen when risks increase. This operation is quite common in the forex market and also boosts Yen trading activity.

Four exchange channels with significant cost differences

Many think exchanging Yen only involves going to a bank, but just the exchange rate difference can cost you the price of a few bubble teas. Below is a comparison of the four most mainstream channels in Taiwan:

Method 1: Bank counter or airport counter—most traditional but highest cost

Exchange cash Yen directly at a bank branch or airport counter. Simple operation, but using “cash selling rate” (about 1-2% worse than spot rate), results in higher overall costs.

For example, Taiwan Bank’s rate on December 10, 2025, at 9:18 AM was about 0.2060 TWD/Yen (1 TWD = 4.85 Yen). Some banks charge fixed handling fees, as follows:

Advantages: Safe, full denominations (1,000/5,000/10,000 Yen available), in-person assistance.
Disadvantages: Exchange rate spread, limited operating hours, possible additional fees.
Suitable for: Those unfamiliar with online operations, small urgent cash needs (airport emergencies).

Method 2: Online exchange, withdrawal at counters or ATMs—balanced choice

Use online banking or apps to convert TWD into Yen and deposit into a foreign currency account, using “spot selling rate” (about 1% better than cash selling rate). If cash is needed, withdraw at counters or foreign currency ATMs, but withdrawal fees apply (around 100 TWD or more).

For example, after currency exchange via E.SUN Bank app, withdrawal fees are the difference between spot and cash rates, with a minimum of 100 TWD. This method is suitable for monitoring exchange rates and entering in batches when the rate is low (TWD/JPY below 4.80).

Advantages: 24/7 operation, ability to buy in batches for average cost, relatively favorable rates.
Disadvantages: Need to open a foreign currency account first, withdrawal fees (interbank around 5-100 TWD).
Suitable for: Those experienced in forex, frequent foreign currency account users, can also invest in Yen deposits (current annual interest rate about 1.5-1.8%).

Method 3: Online currency settlement, designated branch pickup—best pre-departure plan

No need for a foreign currency account, just 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 and Mega International Bank offer this service, with appointment options at airport branches.

Taiwan Bank’s “Easy Purchase” online currency settlement is fee-free (pay via TaiwanPay, only 10 TWD), with about 0.5% rate advantage. Taoyuan Airport has 14 Taiwan Bank outlets, 2 of which operate 24 hours, very convenient.

Advantages: Better rates, often no handling fee, can specify airport pickup.
Disadvantages: Need to book in advance (1-3 days), pickup time limited to bank hours, branches cannot be changed.
Suitable for: Planned travelers who want to pick up cash directly at the airport.

Method 4: Foreign currency ATMs—most flexible for instant cash

Use chip-enabled bank cards to withdraw Yen cash at foreign currency ATMs, supporting 24-hour operation and cross-bank withdrawals (deducted from TWD account with only 5 TWD cross-bank fee). Supports major currencies like Yen, USD, EUR, with about 200 units nationwide.

SinoPac Bank’s foreign currency ATMs allow withdrawal from TWD accounts with a daily limit of 150,000 TWD, no currency exchange fee. Note that Japan’s ATM withdrawal services will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus). However, ATM locations are limited, and currency options are mostly mainstream. It’s advisable not to wait until the last minute, especially in busy areas where cash may run out.

Advantages: Instant withdrawal, high flexibility, low fee from TWD accounts.
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.

Actual cost comparison of four methods

Based on exchanging 50,000 TWD, estimated costs are as follows:

Is it cost-effective to exchange for Yen now? Analysis of the 2025 end-of-year rate

Current exchange rate and annual performance

As of December 10, 2025, TWD/JPY is about 4.85 (1 TWD = 4.85 Yen). Compared to the start of the year at 4.46, the Yen has appreciated approximately 8.7% this year. For Taiwanese investors, this yields a considerable forex gain, especially amid TWD depreciation pressures. In the second half, forex demand in Taiwan increased by 25%, mainly driven by travel recovery and hedging needs.

Short-term fluctuations and medium-term outlook

The Yen remains volatile. With the US entering a rate-cut cycle, the Yen is supported. Meanwhile, the Bank of Japan is on the verge of raising interest rates: Governor Ueda’s hawkish comments have pushed market expectations to 80%, with a 0.25 bps hike to 0.75% expected at the December 19 meeting (a 17-year high), with Japanese bond yields reaching 1.93%.

USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now. Short-term fluctuations may bring it back to 155, but medium to long-term forecasts suggest it will stay below 150.

Advice for investors

As one of the three major safe-haven currencies, Yen is suitable for hedging against Taiwan stock market volatility. However, short-term risks include arbitrage closing, which may cause fluctuations of 2-5%. It’s recommended to enter gradually, avoiding full conversion at once. For investment purposes, consider Yen ETFs (e.g., 00675U, annual management fee 0.4%) to diversify risk.

Asset allocation suggestions after exchanging Yen

Once you have Yen, don’t let the money sit idle without interest. You can shift to steady income or growth investments. Here are four common options suitable for small beginners:

1. Yen fixed deposit (conservative)
E.SUN and Taiwan Bank offer foreign currency accounts, with online deposits. Minimum 10,000 Yen, annual interest 1.5-1.8%. Suitable for capital preservation with interest margin.

2. Yen insurance policies (medium-term hold)
Cathay and Fubon Life offer savings insurance with guaranteed interest rates of 2-3%, typically with a 3-5 year holding period.

3. Yen ETFs (growth)
YuanDa 00675U tracks Yen index, can be bought as fractional shares via broker apps, suitable for dollar-cost averaging. Or choose related products like 00703.

4. Forex trading (swing trading)
Trade Yen currency pairs directly, such as USD/JPY or EUR/JPY, on forex platforms. Forex trading offers long and short positions, 24-hour trading, with small capital, ideal for capturing exchange rate swings.

While Yen is a safe-haven, it also involves two-way volatility risk. BOJ rate hikes are positive, but global arbitrage closing or geopolitical conflicts may suppress the Yen.

Common questions about Yen exchange

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

Cash rate refers to the rate banks offer for physical cash (banknotes/coins). The advantage is immediate delivery and portability, but the rate is 1-2% worse than the spot rate, plus possible fees, making it more costly. Spot rate is the exchange rate in the forex market for settlement within two business days (T+2), used for electronic transfers and non-cash transactions. It’s more favorable (closer to international market prices), but requires waiting for T+2 settlement.

How much Yen can I get with 10,000 TWD?

Using Taiwan Bank’s rate on December 10, 2025, at 9:18 AM, about 4.85 TWD/Yen, 10,000 TWD can buy approximately 48,500 Yen. Using the spot selling rate (about 4.87), it’s roughly 48,700 Yen, a difference of about 200 Yen (roughly TWD 40). Calculation: Yen amount = TWD amount × current rate.

What documents are needed for counter exchange?

Taiwanese should bring ID card + passport. Foreigners need passport + residence permit. If exchanging on behalf of a company, bring business registration documents. For online pre-booked exchange, also bring transaction notice. Minors under 20 need parental consent and ID; large amounts (over 100,000 TWD) may require source of funds declaration.

What is the limit for foreign currency ATM withdrawals?

Limits vary by bank and recent regulations. The latest rules are:

Post-2025 regulations generally lower daily limits to 100,000-150,000 TWD. It’s advisable to split withdrawals or use your own bank card to avoid cross-bank fees (5 TWD per transaction). During peak times (like airports), cash may run out quickly, so plan ahead.

Core advice: Practical strategies for Yen allocation

Yen is no longer just pocket money for travel but also a hedging asset with small investment value. Whether you plan to visit Japan next year or want to hedge against TWD depreciation by moving some funds into Yen, following the principles of “batch exchange” and “not leaving money idle after exchange” can minimize costs and maximize returns.

For beginners, start with the simplest options like “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then gradually move into Yen deposits, ETFs, or small forex trades based on needs. This way, you not only save on travel costs but also add a layer of protection during global market turbulence.