Japanese Yen Exchange Guide: Revealing the Costs of Four Major Channels, A Must-Read Before Traveling Abroad

Is now the best time to exchange for Japanese Yen? Check the numbers first before deciding

As of December 10, 2025, the TWD/JPY exchange rate reached 4.85, appreciating over 8.7% from 4.46 at the beginning of the year. This means that whether for international travel or small-scale investments, the “profit margin” when exchanging TWD for JPY has become quite substantial. Moreover, against the backdrop of ongoing TWD depreciation pressure, converting into JPY as a hedge asset has become a new choice for many investors.

But the key question is: with the same 1 million TWD, the amount of JPY received through different channels can vary by over 5,000 yen. This is equivalent to nearly NT$1,000 in purchasing power lost.

Why are Taiwanese people eager to exchange for Yen?

The practical value of Yen in Taiwan far exceeds that of ordinary foreign currencies.

Everyday life: Traveling in Japan, purchasing via proxy, or long-term residence all require cash transactions in Yen. According to statistics, Japan’s credit card penetration rate is only 60%, and many stores still primarily use cash, making Yen exchange an essential task for travelers to Japan.

Investment: Yen is one of the world’s three major safe-haven currencies (the other two are USD and Swiss Franc). During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% within a week, while the stock market fell 10%, demonstrating its value as a safe asset. For Taiwanese investors, holding Yen is equivalent to adding an “insurance” for Taiwan stocks’ volatility.

Additionally, the Bank of Japan has recently adjusted interest rates, expanding Yen’s exchange rate fluctuation range and increasing investment opportunities.

Four major ways to exchange Yen in Taiwan, and how much do costs differ?

First: Bank counter cash exchange

This is the most traditional method—bringing TWD cash directly to a bank or airport counter to immediately obtain Yen cash.

Cost structure: Banks use the “cash selling rate” (about 1-2% below the international market rate), plus a fixed handling fee. For example, Taiwan Bank’s cash selling rate on December 10, 2025, was approximately 0.2060 TWD per Yen (1 TWD ≈ 4.85 Yen). Some banks charge an additional NT$100-200 handling fee.

For NT$50,000 exchanged at the counter, the total cost loss is about NT$1,500-2,000, which is roughly 3-4% profit for the bank.

Advantages: Simple, safe, full denominations, staff assistance for verification.

Disadvantages: Worst exchange rate, limited by bank hours (weekday 9:00-15:30), cannot do batch operations.

Suitable scenarios: Emergency at the airport, elderly unfamiliar with online operations, small amounts.

Comparison of cash selling rates (as of 2025/12/10):

• Taiwan Bank: 0.2060 TWD/Yen (no handling fee)
• Mega Bank: 0.2062 TWD/Yen (no handling fee)
• CTBC Bank: 0.2065 TWD/Yen (no handling fee)
• E.SUN Bank: 0.2067 TWD/Yen (NT$100 per transaction fee)
• Taipei Fubon Bank: 0.2069 TWD/Yen (NT$100 per transaction fee)

Second: Online exchange + in-person pickup

Using bank app or online banking, convert TWD to Yen at a more favorable “spot selling rate” (about 1% better than cash rate), deposit into a foreign currency account, then pick up cash at the counter when needed.

Cost structure: Spot rate closer to international market, but withdrawal incurs extra fee (minimum NT$100). For NT$50,000, total loss is about NT$500-1,000.

Advantages: 24/7 operation, can average out exchange rates over multiple entries, suitable for waiting for lower rates.

Disadvantages: Need to open a foreign currency account in advance, withdrawal fees apply, higher cross-bank withdrawal costs.

Suitable scenarios: Users experienced in forex investment, those with foreign currency accounts, or planning long-term Yen holdings (can transfer into fixed deposits with annual interest rates of 1.5-1.8%).

Third: Online currency exchange + airport pickup (most cost-effective)

Banks offer “reservation-based” exchange services, where you fill in currency, amount, and branch on their website, complete payment, then bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” and Mega Bank provide this service, with options to pick up at airport branches.

Cost structure: Exchange rate discount of about 0.5% (close to spot rate), handling fee often waived or NT$10 (Taiwan Bank pays via TaiwanPay), the lowest among four methods. For NT$50,000, total loss is only NT$300-800.

Advantages: Best exchange rate, lowest handling fee, can specify pickup at Taoyuan Airport (Taiwan Bank has 14 branches there, 2 open 24 hours), cash ready before departure.

Disadvantages: Need to book 1-3 days in advance, pickup limited to bank hours, reservation at a branch cannot be changed.

Suitable scenarios: Planned travelers, those preparing funds before departure, budget-conscious users.

Fourth: Foreign currency ATM withdrawal

Using a chip-enabled bank card at foreign currency ATMs to directly withdraw Yen cash, available 24/7, debited from TWD account, with a cross-bank fee of NT$5.

Cost structure: No exchange fee, only cross-bank withdrawal fee (within NT$5 for the same bank, varies for others), total loss about NT$800-1,200 (for NT$50,000).

Advantages: Most flexible operation, 24/7 access, if using your own bank card with minimal cross-bank fee, no queues.

Disadvantages: Limited number of machines (about 200 nationwide), fixed denominations (only 1,000/5,000/10,000 Yen bundles), cash may run out during peak hours, requires planning ahead.

Suitable scenarios: Busy professionals, urgent cash needs, users avoiding bank queues.

Summary table of costs and suitable scenarios for four methods

Yen exchange rate trend and investment timing

As of December 2025, USD/JPY has retreated from a high of 160 at the start of the year to 154.58. Bank of Japan Governor Ueda Kazuo recently made hawkish comments, with market expectations of a 0.25 percentage point rate hike at the December 19 meeting to 0.75% (a 30-year high), and Japanese government bond yields reaching a 17-year high of 1.93%.

Short-term outlook: Yen may fluctuate around 155, but medium to long-term forecasts suggest below 150. Investors should adopt a phased exchange strategy to avoid converting all at a high point.

Long-term allocation: Yen as a safe-haven asset is suitable for hedging Taiwan stock risks. It’s recommended to allocate 5-10% of your portfolio to Yen assets, such as Yen fixed deposits (annual interest 1.5-1.8%), Yen ETFs (e.g., Yuanta 00675U, annual management fee 0.4%), or forex swing trading.

Post-exchange value-added options for Yen

Once you have Yen, don’t let it sit idle—consider the following investment options:

1. Yen fixed deposit: Most stable, starting from as low as 10,000 Yen, with annual interest of 1.5-1.8%, suitable for capital preservation.

2. Yen insurance policy: Medium-term holding, guaranteed interest rates of 2-3%, offered by Cathay, Fubon, and other life insurers.

3. Yen ETFs: Growth-oriented, Yuanta 00675U tracks Yen index, supports fractional investing, suitable for long-term accumulation.

4. Forex trading: Advanced option, using forex platforms to trade USD/JPY or EUR/JPY swing positions, with both long and short options, 24-hour trading, but requires risk awareness.

Quick FAQ

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

Cash rate is the bank’s buy/sell rate for physical banknotes, used for travel exchange, usually 1-2% worse than the spot rate. Spot rate is the rate for settlement within two business days (T+2), used for electronic transfers and foreign currency accounts, closer to international market prices.

Q: How much Yen can NT$10,000 buy?

Using Taiwan Bank’s cash selling rate of 4.85 on December 10, 2025, NT$10,000 ≈ 48,500 Yen. Using the spot selling rate (~4.87), it’s about 48,700 Yen.

Q: What documents are needed for in-person exchange?

Taiwanese: ID card and passport. Foreigners: Passport and residence permit. Large amounts (over NT$100,000) may require declaration of source of funds. Under 20 need parental accompaniment.

Q: What’s the limit for foreign currency ATM withdrawals?

As of October 2025, limits vary:

• CTBC Bank: NT$120,000 per transaction and per day
• Taishin Bank: NT$150,000 per transaction and per day
• E.SUN Bank: NT$50,000 per transaction, NT$150,000 per day

It’s recommended to split withdrawals or use your own bank card to minimize cross-bank fees.

Final recommendations

Yen is no longer just for travel “pocket money”; it’s also an asset class with hedging and income potential. Whether for next year’s trip or asset reallocation during depreciation pressure, following the principles of “phased exchange + post-exchange investment” can minimize costs and maximize returns.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transfer into fixed deposits, ETFs, or forex swing trading as needed. This approach makes travel more economical and adds a layer of asset protection during global market turbulence.