NT$50,000 to JPY exchange test: Which method is the most cost-effective? The latest exchange rates and cost analysis

December 2025, the exchange rate of TWD to JPY reached 4.85, appreciating about 8.7% compared to 4.46 at the beginning of the year. During the same period, MYR to TWD also fluctuated, but the appreciation of JPY was more noticeable, making it a popular foreign currency exchange option among many Taiwanese. Whether you’re planning to travel abroad, shop on behalf of others, or want to allocate hedging assets, now might be a good time—provided you choose the right currency exchange method.

Is it really cost-effective now? Three reasons why you should exchange now

Reason 1: Significant exchange rate appreciation
TWD to JPY rose from 4.46 at the start of the year to 4.85, an appreciation of nearly 9%. Compared to the volatility of many other currencies, JPY has performed relatively steadily. Looking further back, JPY is one of the world’s three major safe-haven currencies (alongside USD and CHF), becoming even more valuable during geopolitical risks.

Reason 2: TWD depreciation pressure
Overall, the TWD faces depreciation expectations, so converting early into strong currencies like JPY can serve as a hedge. According to data in the second half of the year, Taiwan’s foreign exchange demand increased by 25%, mainly driven by tourism recovery and hedging needs.

Reason 3: Bank of Japan interest rate hike expectations
BOJ Governor Ueda Kazuo recently adopted a hawkish stance, with market expectations that the December 19 meeting will raise interest rates by 0.25 basis points to 0.75% (a 30-year high). Japanese bond yields have hit a 17-year high of 1.93%. This means returns on JPY fixed deposits or JPY assets are increasing.

But note: Short-term fluctuations still exist. USD/JPY is currently around 154.58, possibly returning to 155 in the short term, with medium to long-term forecasts below 150. It is recommended to enter gradually rather than exchanging all at once.

Four methods to exchange for JPY and their cost comparison—how much can you save?

Using 50,000 TWD as a baseline, we tested the cost differences of each method.

Method 1: Bank counter cash exchange—most traditional but most costly

Carry TWD cash to a bank branch or airport counter to exchange for JPY cash. This is the most common method but incurs the highest costs.

Why is it the most costly? Banks use the “cash selling rate,” which is about 1-2% worse than the market spot rate. For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 TWD/JPY (1 TWD = 4.85 JPY), while the spot rate is 0.2063 TWD/JPY (1 TWD = 4.87 JPY).

With 50,000 TWD, you get about 242,500 JPY at this rate, losing roughly 1,500-2,000 TWD. Plus, some banks charge handling fees (100-200 TWD), increasing the loss.

Suitable for: People unfamiliar with online operations or needing urgent cash at the airport

Method 2: Online currency exchange + ATM cash withdrawal—moderate cost

Use bank app or online banking to convert TWD to JPY at the spot rate, depositing into a foreign currency account. If cash is needed, withdraw at an ATM or counter.

Cost structure: Spot rate is about 1% better than cash rate, but withdrawal incurs exchange difference and handling fees (around 100 TWD or more). After exchanging 50,000 TWD, total cost is about 500-1,000 TWD.

Advantages: 24/7 online operation, can buy in batches when the rate is low (e.g., TWD/JPY below 4.80) to average the cost

Disadvantages: Need to open a foreign currency account first; cross-bank withdrawal fees of 5-100 TWD

Suitable for: Those experienced in forex investment, interested in JPY deposits

Method 3: Online currency exchange + airport pickup—most cost-effective

No need for a foreign currency account. Book online via bank website, specify airport branch for pickup. Taiwan Bank’s “Easy Purchase” service has no handling fee (pay via Taiwan Pay, only 10 TWD), with about 0.5% better rate.

This is the best pre-departure option, especially with 14 Taiwan Bank branches at Taoyuan Airport (including 2 open 24 hours).

Cost estimate: Only about 300-800 TWD loss for 50,000 TWD, the cheapest among four methods

Advantages: No handling fee, better exchange rate, airport pickup available

Disadvantages: Need to book 1-3 days in advance; pickup time limited by business hours; branch changes not possible

Suitable for: Planned travelers, especially those preparing to go abroad

Method 4: Foreign currency ATM withdrawal—most flexible

Use chip-enabled debit card at foreign currency ATMs to withdraw JPY cash. E.SUN Bank’s foreign currency ATMs allow direct withdrawal from TWD account, with a daily limit of 150,000 TWD and no exchange fee. Open 24 hours, cross-bank fee only 5 TWD.

Cost estimate: About 800-1,200 TWD, moderate level

Advantages: Instant withdrawal, high flexibility, deduct from TWD account saving handling fees

Disadvantages: Only about 200 locations nationwide, fixed denominations (1,000/5,000/10,000 JPY), cash may run out during peak times

Suitable for: People with no time to visit banks or urgent needs

Quick cost comparison table of 4 methods

Our recommendation: If you have time to prepare, “online exchange + airport pickup” is the most cost-effective. For urgent needs, use “foreign currency ATM.” Avoid cash exchange at counters unless really in a hurry.

After exchanging for JPY, how to store it? Four value-added options

Once you have JPY, leaving it idle without interest is not ideal. Consider these options:

1. JPY fixed deposit—conservative
E.SUN Bank, Taiwan Bank, etc., offer foreign currency accounts starting from 10,000 JPY, with annual interest rates of 1.5-1.8%. Suitable for those prioritizing capital preservation.

2. JPY insurance policies—medium-term holding
Cathay, Fubon life savings insurance, with guaranteed interest rates of 2-3%. Suitable for locking in returns.

3. JPY ETFs—growth-oriented
Like Yuanta 00675U tracking JPY index, can be bought as fractional shares via brokerage apps. Management fee 0.4% annually, suitable for risk diversification.

4. JPY swing trading—aggressive
Trade USD/JPY(USD/JPY) or EUR/JPY(EUR/JPY) to capture exchange rate fluctuations. Both long and short positions, 24-hour trading, small capital required.

Common Q&A

Q: What’s the difference between cash rate and spot rate?
A: Cash rate is the buy/sell rate banks offer for physical cash, used for travel exchange, usually 1-2% worse than the spot rate. Spot rate is the foreign exchange market rate for T+2 settlement, mainly for electronic transfers, more favorable but requires waiting for settlement.

Q: How much JPY can 10,000 TWD buy?
A: Using Taiwan Bank’s cash selling rate of 4.85 on December 10, 2025, 10,000 TWD ≈ 48,500 JPY. Using the spot rate of 4.87, about 48,700 JPY, difference of roughly 200 JPY (~40 TWD).

Q: Is there a daily limit for foreign currency ATMs?
A: Varies by bank. China Trust allows equivalent of 120,000 TWD/day, Taishin 150,000 TWD/day, E.SUN 150,000 TWD/day (including credit card). It’s advisable to split withdrawals or use your own bank card to avoid cross-bank fees.

Q: What documents are needed for currency exchange?
A: Usually, ID card + passport for locals; passport + residence permit for foreigners. For online booking, also need transaction notice. For amounts over 100,000 TWD, may need to declare source of funds. Minors under 20 require parental accompaniment.

Conclusion

JPY is no longer just pocket money for travel; it also serves as a hedging and income-generating asset. Current exchange rates, BOJ rate hike expectations, and TWD depreciation pressures all point to now being a good time to exchange.

The key is to adopt a “batch exchange + don’t leave it idle” strategy—choose the most cost-effective method, then transfer JPY into deposits, ETFs, or swing trading for added value. This way, you not only save on travel costs but also add a layer of protection amid global market volatility.

For beginners, the simplest start is “Taiwan Bank online exchange + airport pickup.” After experiencing it, you can upgrade to other methods based on your needs.