2025 Japanese Yen Exchange Guide: 4 Methods Compared, Must-Know Before Traveling Abroad

Is it cost-effective to exchange for Japanese Yen now? The 8.7% appreciation opportunity in one year

As of December 10, 2025, the TWD/JPY exchange rate is approximately 4.85, up about 8.7% from 4.46 at the beginning of the year. This means that whether you’re planning to travel or shop in Japan, or want to hedge against TWD depreciation by allocating assets, exchanging for Yen has become a popular choice among many Taiwanese.

According to the latest data, Taiwan’s foreign exchange demand in the second half of the year has grown by 25%, mainly driven by the recovery in tourism and risk hedging. But whether it’s cost-effective depends on choosing the right exchange channels—using the same 50,000 TWD, different methods can result in cost differences of over 1,500 NT dollars.

Why exchange for Yen? It’s not just about traveling abroad

Travel, shopping, what to bring to Japan

Whether it’s shopping in Shibuya, Osaka’s Shinsaibashi, skiing in Hokkaido, or vacationing in Okinawa, most Japanese merchants still rely on cash transactions (credit card penetration is only 60%). For those who like buying Japanese cosmetics, clothing, or anime merchandise, direct Yen payments are often necessary. Those planning to study or work in Japan also need to exchange money in advance to avoid sudden exchange rate fluctuations.

What to bring to Japan? Besides your passport and flight ticket, sufficient Yen cash is essential.

Financial Investment: One of the three major safe-haven currencies

The Yen has long been one of the world’s three major safe-haven currencies (alongside USD and Swiss Francs), due to Japan’s stable economy and low government debt. During market turbulence, funds often flow into Yen for safety—during the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in one week, enough to buffer a 10% stock market decline. For Taiwanese investors, exchanging Yen is not just for consumption but also a hedging asset strategy against Taiwan stock market volatility.

Additionally, the Bank of Japan has recently started a rate hike cycle—Governor Ueda Kazuo’s hawkish comments have pushed market expectations to 80%, with a rate hike of 0.25 basis points to 0.75% expected at the December 19 meeting (a 30-year high), and Japanese bond yields reaching a 17-year high of 1.93%. This increases the attractiveness of Yen.

Four methods to exchange for Yen in Taiwan, with cost and convenience analysis

Method 1: Bank counter exchange—safest but most costly

Carry TWD cash directly to a bank branch or airport counter to exchange for Yen cash. Simple operation, full denominations (1,000, 5,000, 10,000 Yen available), with staff assistance on site.

However, this method uses the “cash selling rate,” which is usually 1-2% worse than the spot rate. For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT per Yen (1 NT = 4.85 Yen). Some banks also charge handling fees.

For 50,000 NT, this method results in a loss of about 1,500-2,000 NT, suitable for small, urgent needs or airport emergencies.

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

Method 2: Online exchange + ATM withdrawal—flexible, staged entry

Use online banking or app to convert TWD into Yen and deposit into a foreign currency account, using the “spot sell rate” (about 1% better than cash selling rate). If cash is needed, withdraw at counters or foreign currency ATMs, but this incurs exchange spread and handling fees (starting around 100 NT).

Advantages: 24-hour operation, allows staged purchases to average costs. For example, E.SUN Bank’s app lets users monitor exchange rates and buy when the rate is favorable (TWD/JPY below 4.80), avoiding the risk of exchanging all at once.

Suitable for experienced forex users, with estimated costs of 500-1,000 NT for 50,000 NT base. After exchange, you can also invest in Yen deposits (current annual interest 1.5-1.8%) to increase returns.

Method 3: Online currency settlement + airport pickup—best pre-departure plan

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After completing online settlement, bring ID and transaction notice to pick up in person. Taiwan Bank and Mega Bank offer this service, with appointment options at airport branches.

Taiwan Bank’s “Easy Purchase” online settlement is fee-free (pay via TaiwanPay for only 10 NT), with about 0.5% exchange rate advantage. The biggest benefit is that Taoyuan Airport has 14 Taiwan Bank counters (including 2 open 24 hours), allowing direct pickup before departure with zero time lag.

Estimated cost loss: 300-800 NT, suitable for planned travelers who want to pick up cash at the airport. Pre-book at least 1-3 days in advance; pickup times are limited by bank hours.

Method 4: Foreign currency ATM withdrawal—24/7 anytime, anywhere

Use a chip-enabled bank card at foreign currency ATMs to withdraw Yen cash, supporting 24-hour operation and interbank withdrawals (only 5 NT cross-bank fee from TWD account). Currency limited to major currencies like Yen, with about 200 locations nationwide.

SinoPac Bank’s foreign currency ATMs have a daily limit of 150,000 NT, with no exchange fee. However, ATM locations are limited, and denominations are fixed (1,000/5,000/10,000 Yen). During peak times, cash may run out quickly.

Estimated cost loss: 800-1,200 NT, suitable for those with no time to visit banks or needing urgent cash.

Comparison table of four exchange methods (based on 50,000 NT):

Post-exchange usage: Don’t let your money sit idle

After exchanging Yen, funds should be actively managed. Based on investment attributes and timeline, options include:

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

2. Yen savings insurance—mid-term yield
Cathay Life and Fubon Life offer Yen policies with guaranteed interest rates of 2-3%, suitable for 3-5 year holding.

3. Yen ETFs—growth with volatility
Yuanta 00675U tracks Yen index, can be bought as fractional shares via brokerage apps. Management fee 0.4% annually, diversified risk.

4. Exchange rate swing trading—active approach
Trade USD/JPY or EUR/JPY directly to capture exchange rate fluctuations. Advantages include two-way trading, 24/7 access, and small capital requirements.

The BOJ’s rate hikes favor Yen’s long-term outlook, but global arbitrage unwinding or geopolitical risks (Taiwan Strait, Middle East) may temporarily suppress Yen. For investment, diversification remains key.

Pre-departure essentials: Common currency exchange questions

Q: What’s the difference between cash exchange rate and spot rate?
Cash exchange rate is the rate banks offer for physical bills/coins, suitable for travel, with on-the-spot delivery, but 1-2% worse than spot. Spot rate is the foreign exchange market rate for settlement within two business days, used for electronic transfers and import/export, offering better rates but requiring T+2 settlement.

Q: How much cash should I bring to Japan?
While digital payments are increasing, cash remains dominant. Bring enough Yen for daily expenses, avoiding reliance on ATMs (some rural areas lack international card services). For a week-long trip, 50,000-100,000 Yen is a safe range.

Q: How much Yen can I get for 10,000 NT?
Using the formula: Yen amount = NT amount × current exchange rate. At Taiwan Bank’s cash selling rate of 4.85, 10,000 NT ≈ 48,500 Yen. Using spot rate 4.87, about 48,700 Yen, difference of 200 Yen (~40 NT).

Q: What documents are needed for traveling to Japan?
For cash exchange at counters, Taiwanese need ID + passport; foreigners need passport + residence permit. If pre-booked online (online settlement), bring transaction notice. Under 20 requires parental consent; large exchanges over 100,000 NT may require source declaration.

Q: Are there limits on foreign currency ATM withdrawals in Taiwan?
Limits vary due to new regulations (from October 2025). CTBC Bank’s card limit is equivalent to 120,000 NT per transaction/day; Taishin Bank’s is 150,000 NT; E.SUN Bank’s is 50,000 NT per transaction (about 50 bills), with a daily limit of 150,000 NT. Consider spreading withdrawals or using your own bank card to avoid cross-bank fees.

Summary: Timing and staged entry

Yen is no longer just for travel “pocket money” but also a hedging and investment asset. Whether for next year’s trip or asset allocation, following the principles of “staged exchange + not leaving money idle” can lower costs and maximize returns.

Beginners are advised to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” experience the process, then gradually explore fixed deposits, ETFs, or swing trading based on needs. This way, traveling becomes more cost-effective, and you gain extra protection during global market turbulence. Remember: what to bring to Japan? The most important thing is sufficient and cheap Yen cash—are you ready?