Yen exchange tips: What to bring for in-person withdrawals + comparison of costs across 4 major channels

Why is it worth exchanging for Japanese Yen?

In global capital flows, the Japanese Yen has long been listed as one of the three major safe-haven currencies (alongside the US dollar and Swiss franc). This is not just driven by travelers’ demand but also a strategic choice by investors.

Financial Investment Perspective

Japan’s economy is stable, with a clear government debt structure, and during market volatility, large capital inflows tend to move into the Yen for hedging. For example, during the Russia-Ukraine conflict in 2022, the Yen appreciated by 8% in a single week, effectively offsetting stock market declines of over 10%. For Taiwanese investors, holding Yen can help balance the risks in the Taiwan stock market.

Additionally, the Bank of Japan has maintained ultra-low interest rates (currently 0.5%) for a long time, making the Yen a financing currency. Many investment institutions borrow low-interest Yen, convert to higher-yielding USD investments (the USD-JPY interest rate differential reaches 4.0%), and when risks increase, they close the position and repurchase. This arbitrage trading pattern makes the Yen an important target in financial markets.

Practical Use in Daily Life

Whether shopping in Tokyo, skiing in Hokkaido, or vacationing in Okinawa, Japan still primarily uses cash transactions (credit card penetration is only 60%). Proxy buyers, Japanese online shoppers, and students studying abroad all need to exchange Yen regularly.

Is it cost-effective to exchange Yen now?

As of December 2025, the TWD/JPY exchange rate is about 4.85 (i.e., 1 TWD = 4.85 Yen), up approximately 8.7% from the beginning of the year at 4.46. This presents a relatively favorable entry point for currency exchange.

Exchange Rate Trends Driven by Central Bank Policies

Bank of Japan Governor Ueda Kazuo recently adopted a hawkish stance, boosting market expectations of interest rate hikes to 80%. The December 19 meeting is expected to raise rates by 0.25 bps to 0.75% (a 30-year high), with Japanese bond yields reaching a 17-year high of 1.93%.

The USD/JPY has fallen from the high of 160 at the start of the year to around 154.58. Short-term fluctuations may bring it back to 155, but medium to long-term forecasts suggest it could fall below 150. For investors, it is wiser to enter in batches rather than exchanging all at once to avoid short-term exchange rate volatility risking 2-5%.

Four Major Channels for Taiwanese Yen Exchange

Many think exchanging Yen means going to the bank, but in reality, the exchange rate difference for the same amount can be as high as 1500-2000 TWD depending on the channel. Let’s analyze each.

Option 1: Online currency exchange + airport pickup (most recommended)

How it works

No need to open a foreign currency account. Simply make an appointment on the bank’s official website, specify currency, amount, designated branch, and date. After completing online currency exchange, bring your ID and transaction notification to pick up in person. Both Taiwan Bank’s “Easy Purchase” and Mega International Bank offer this service.

Cost analysis

Taiwan Bank’s online exchange is fee-free (pay with Taiwan Pay, only 10 TWD), with about 0.5% favorable exchange rate margin. For 50,000 TWD, the cost is approximately 300-800 TWD, saving over 1,000 TWD compared to in-branch exchange.

Suitable scenarios

Especially suitable for planned travelers. Taoyuan Airport has 14 Taiwan Bank counters, with 2 offering 24-hour service, allowing direct Yen pickup at the airport without prior bank visits.

Advantages: Better exchange rates, low fees, designated airport branches, suitable for pre-departure planning.
Disadvantages: Need to book at least 1-3 days in advance, pickup time limited by bank hours, branches cannot be changed on the spot.

Option 2: Foreign currency ATM withdrawal (real-time flexibility)

How it works

Use a chip-enabled financial card to withdraw Yen cash from foreign currency ATMs at banks, available 24/7. Deducted directly from TWD account, cross-bank fee only 5 TWD, no currency exchange fee.

Cost analysis

Services provided by banks like E.SUN Bank, with a daily withdrawal limit of about 150,000 TWD equivalent. Exchanging 50,000 TWD costs about 800-1200 TWD, slightly lower than in-branch exchange but higher than online.

Important reminders

There are only about 200 foreign currency ATMs nationwide, with fixed denominations of 1000/5000/10000 Yen. Cash may sell out during peak times (e.g., airports), so plan ahead. ATM withdrawal services in Japan will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus).

Advantages: 24-hour instant withdrawal, low cross-bank fees, flexible.
Disadvantages: Few ATMs, fixed denominations, often out of stock during peak times.

Option 3: Online exchange + in-branch withdrawal

How it works

Use online banking app to convert TWD into Yen and deposit into a foreign currency account (using spot selling rate). When cash is needed, withdraw in person or via foreign currency ATM, incurring a spread fee (around 100 TWD or more).

Cost analysis

Spot selling rate is about 1% better than cash selling rate, but a spread fee applies at withdrawal. Exchanging 50,000 TWD costs about 500-1000 TWD.

Investment applications

Suitable for observing exchange rate trends, entering in batches at low points to average costs. The foreign currency account can also transfer funds into Yen fixed deposits (annual interest rate about 1.5-1.8%) or Yen ETFs.

Advantages: 24/7 operation, batch buying, better rates.
Disadvantages: Need to open a foreign currency account, withdrawal incurs additional fees.

Option 4: In-person cash exchange (backup plan)

How it works

Bring cash to a bank branch or airport counter to exchange directly for Yen cash, paid on the spot.

Cost analysis

Use cash selling rate (1-2% below spot rate), with some banks charging fixed handling fees. Exchanging 50,000 TWD costs about 1500-2000 TWD, the most expensive among the four methods.

Advantages: Safe, reliable, full denominations, on-site assistance.
Disadvantages: Worse exchange rate, limited to business hours (9:00-15:30), additional fees increase costs.

Who is suitable?
People unfamiliar with online operations or needing small, urgent cash exchanges (e.g., at the airport).

What to bring for in-person withdrawal?

Regardless of the method, you may need to pick up cash in person. Prepare the correct documents to avoid unnecessary trips.

Basic documents

• ROC citizens: ID card + passport
• Foreigners: Passport + residence permit
• Company exchange: Business registration certificate

Online appointment for pickup

If you pre-arranged online currency exchange or reservation, also bring the transaction notification (sent via SMS or email, be sure to keep it).

Special cases

• Under 20 years old: need legal guardian’s accompaniment and consent letter
• Large amounts (over 100,000 TWD): may require source of funds declaration, banks will notify accordingly
• Delegating someone else to pick up: some banks require a power of attorney and ID of the agent

Quick decision table for currency exchange methods

How to use Yen after exchange

After exchanging Yen, keep the funds active rather than idle to generate returns. Consider options such as:

Yen fixed deposit: Stable, via E.SUN/ Taiwan Bank foreign currency accounts, starting from 10,000 Yen, with annual interest rates of 1.5-1.8%.
Yen insurance policies: Medium-term holdings, Cathay/Fubon savings insurance, guaranteed interest rates of 2-3%.
Yen ETFs (e.g., 00675U, 00703): Growth-oriented, Yuanta 00675U tracks Yen index, can buy fractional shares via brokerage apps, suitable for dollar-cost averaging.
Forex trading: Direct trading of currency pairs (USD/JPY, EUR/JPY) on forex platforms, suitable for swing or intraday strategies, offering long/short positions, 24-hour trading, and small capital requirements.

Frequently Asked Questions

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

Cash rate (Cash Rate) applies to physical cash (bills/coins), with the advantage of immediate delivery but usually 1-2% worse than the spot rate, plus handling fees. Spot rate (Spot Rate) is used for electronic transfers or non-cash settlement, more favorable (close to international market prices), but settlement takes T+2.

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

Using Taiwan Bank’s December 2025 cash selling rate of 4.85, 10,000 TWD can exchange for about 48,500 Yen. Using the spot selling rate of about 4.87, it’s approximately 48,700 Yen, a difference of about 200 Yen (roughly 40 TWD).

Q: Is there a limit for foreign currency ATM withdrawals?

Limits vary by bank due to new regulations (from October 2025, many banks strengthen anti-fraud measures):

• CTBC Bank: daily limit of TWD 120,000 equivalent
• Taishin Bank: daily limit of TWD 150,000 equivalent
• E.SUN Bank: daily limit of TWD 150,000 (including credit card transactions)

It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees (5 TWD per transaction). Plan ahead during peak times to prevent cash shortages.

Final recommendations

The Yen has transcended the role of just “travel pocket money,” now serving as a hedge and investment asset. Whether traveling or asset allocation, follow the two principles of “batch exchange + don’t leave it idle” to minimize costs and maximize returns.

For beginners, start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transition into fixed deposits, ETFs, or forex trading as needed. This way, you not only save on travel costs but also add a layer of asset protection during global market fluctuations.