How to get the most value when exchanging TWD for JPY? Revealing the costs of the four major channels

When it comes to exchanging foreign currency, Taiwanese people are most familiar with Japanese Yen. But did you know? Just choosing the right currency exchange channel can save you a lot of handling fees, even thousands of dollars more. Today, we will break down the four current methods of exchanging Japanese Yen, so you can understand exactly where each one’s costs differ.

Is it really cost-effective to exchange Yen now?

As of December 10, 2025, the TWD to JPY exchange rate has risen above 4.85, up from 4.46 at the beginning of the year, appreciating approximately 8.7% in total. This number may not sound like much, but it’s very noticeable in actual amounts—exchanging 50,000 TWD now yields nearly 4,400 more Yen than at the start of the year, which is equivalent to an exchange gain of over NT$800.

But don’t rush to exchange all at once. Currently, the Yen is in a fluctuation zone, with the Bank of Japan adopting a hawkish stance (expected to raise interest rates to 0.75% in December, a 30-year high), while the US enters a rate-cut cycle. These factors influence short-term exchange rates. USD/JPY has dropped from 160 at the start of the year to 154.58, possibly testing 155 in the short term, but medium to long-term forecasts place it below 150. In other words, now is a good time to exchange Yen, but staggered entries are smarter.

Four ways to exchange currency, with significant cost differences

Many people are used to exchanging currency directly at banks or airports, but the cost difference can be as high as NT$2,000. Using a case of 50,000 TWD, let’s look at the costs of the latest four channels.

Method 1: Traditional counter exchange — most convenient but most expensive

Bring cash TWD directly to a bank branch or airport counter to exchange for Yen cash. The operation is straightforward, but it uses the “cash selling rate,” which is 1-2% worse than the market spot rate, plus possible handling fees, making it the most costly overall.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is about 0.2060 TWD per Yen (1 TWD = 4.85 Yen), while E.Sun Bank’s rate is 0.2067, with an additional NT$100 handling fee. Each bank’s cash selling rate ranges from 0.2058 to 0.2069, a small difference but cumulative in cost.

Exchanging NT$50,000 is estimated to result in a loss of NT$1,500-2,000, making it suitable for emergency or urgent airport needs.

Method 2: Online exchange + in-person withdrawal — suitable for those with foreign currency accounts

Use bank app or online banking to convert NT$ into Yen at the “spot selling rate,” which is about 1% better than cash selling. If cash is needed, you can withdraw at the counter or via foreign currency ATM, but handling fees (starting around NT$100) apply.

This method suits those already familiar with foreign currency trading, and allows for staggered entries at lower points to average costs. E.Sun Bank offers Yen fixed deposits with annual interest rates of 1.5-1.8%. After exchange, transferring directly into a deposit account is also good.

Exchanging NT$50,000 is estimated to lose NT$500-1,000, suitable for forex investment or long-term holding.

Method 3: Online currency settlement + airport pickup — smart choice for travelers

No need to open a foreign currency account. Simply fill in the currency, amount, pickup branch, and date on the bank’s official website. After transferring funds, bring your ID and transaction notification to the counter for pickup. Taiwan Bank’s “Easy Purchase” online settlement costs only NT$10 via Taiwan Pay, with about 0.5% better exchange rate, and even no handling fee.

The key advantage is the ability to reserve an airport branch (Taoyuan Airport has 14 Taiwan Bank locations, 2 of which operate 24 hours), allowing you to pick up Yen directly before departure, saving the hassle of last-minute exchange.

Exchanging NT$50,000 is estimated to lose NT$300-800, ideal for planned travelers who want to withdraw at the airport.

Method 4: Foreign currency ATM — withdraw anytime, anywhere

Use a chip-enabled financial card at a foreign currency ATM to withdraw Yen cash. Supports 24-hour operation, cross-bank transfers with only NT$5 fee, directly debited from your TWD account. The daily withdrawal limit at E.Sun Bank’s foreign currency ATM is NT$150,000 equivalent, with no additional exchange fee.

Disadvantages include limited locations (about 200 nationwide), fixed denominations of 1,000, 5,000, and 10,000 Yen, and cash shortages during peak times. It’s recommended not to wait until the last minute, especially at busy places like airports.

Exchanging NT$50,000 is estimated to lose NT$800-1,200, best for those with no time to visit a bank or needing urgent cash.

Cost comparison table: clear at a glance

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

Once you have Yen, instead of letting cash sit idle without interest, consider stable or growth investments.

Yen fixed deposits are the most conservative choice — starting from 10,000 Yen, with annual interest rates of 1.5-1.8%, suitable for capital preservation.

Yen insurance policies are suitable for medium-term holding, with guaranteed interest rates of 2-3%, but require going through life insurance companies.

Yen ETFs like Yuanta 00675U track the Yen index, and can be bought as fractional shares via broker apps for dollar-cost averaging, suitable for those wanting to participate in exchange rate fluctuations while diversifying risk, with an annual management fee of only 0.4%.

Direct forex swing trading is an advanced approach, trading USD/JPY or EUR/JPY currency pairs. Advantages include two-way trading, 24-hour market, and small capital requirements, but risks are higher. The Bank of Japan’s rate hikes favor the Yen, but global arbitrage unwinding or geopolitical risks (Taiwan Strait, Middle East conflicts) may suppress it, with short-term fluctuations of 2-5%. Adequate mental preparation is necessary.

What you need to know about cash rates and spot rates

Cash rates are the buy/sell rates banks offer for physical cash (banknotes and coins). The benefit is immediate delivery and portability, but they are 1-2% worse than spot rates, plus handling fees, making them more expensive.

Spot rates are the rates for foreign exchange transactions settled within two business days (T+2) in the forex market, mainly used for electronic transfers and non-cash settlements. They are more favorable and close to international market prices but require T+2 settlement time.

In simple terms, for the best rates, use spot rates; for immediate cash, accept cash rates.

What to bring for counter transactions?

Taiwanese must bring ID card and passport for foreign currency cash transactions. Foreigners need to bring passport and residence permit. If representing a company, bring business registration proof. If pre-booked online, also bring transaction notification.

Minors under 20 need parental accompaniment and consent forms. Large exchanges (over NT$100,000) may require a source of funds declaration.

Is there a limit for foreign currency ATM withdrawals?

After October 2025, banks will adjust anti-fraud measures for digital accounts, reducing the daily ATM withdrawal limit for third-category digital accounts to NT$100,000-150,000 equivalent. CTBC Bank’s card limit is NT$120,000, Taishin Bank NT$150,000, E.Sun Bank NT$150,000 including signature credit.

It’s recommended to use your own bank card to avoid cross-bank fees (NT$5 per transaction), or to split withdrawals to avoid exceeding limits. Cash shortages are common during peak times (like airports), so plan ahead.

Summary: staggered exchange + active utilization after exchange

The Yen is no longer just for travel pocket money; it also functions as an asset with hedging and investment value. Whether for next year’s Japan trip or to hedge against TWD depreciation by shifting into safe assets, following the principle of “staggered exchange and active utilization” can minimize handling fees and maximize returns.

Beginners are advised to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then transfer Yen into fixed deposits, ETFs, or swing trading based on needs. This way, traveling becomes more cost-effective, and you gain an extra layer of protection during global market fluctuations.