Comprehensive Guide to Yen Exchange: Cost Analysis of 4 Major Channels × Why Yen is More Cost-Effective than TWD

Why Exchange to JPY Now? What Makes the Yen Stronger Than the TWD

Talking about foreign currency investment, the yen is often overlooked, but in reality, it combines travel practicality and financial hedging value. Especially under the current TWD depreciation pressure, the yen has greater potential for preservation of value than the TWD.

Travel Necessity Japan remains Taiwan’s top choice for outbound travel, with Tokyo, Osaka, and Okinawa attracting millions of tourists annually. Japan’s cash culture is strong (credit card penetration only 60%), and scenarios like shopping agents, working holidays, and studying abroad all require yen cash.

Financial Investment Perspective The yen has long been one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), due to Japan’s stable economy and manageable government debt. When geopolitical risks rise (e.g., Russia-Ukraine conflict in 2022), the yen appreciated 8% in a single week, while the stock market dropped 10%. For Taiwanese investors, the yen can better hedge against Taiwan stock market volatility than the TWD.

Additionally, the Bank of Japan recently shifted to a hawkish stance, with Governor Ueda Kazuo suggesting rate hikes, possibly raising to 0.75% at the December meeting (a 30-year high), pushing Japanese government bond yields above 1.93%. This indicates that yen deposit yields are expected to surpass 1.5-1.8%, far exceeding the TWD.

Yen Exchange Rate as of End of 2025: Is Now a Good Time to Exchange?

As of December 10, 2025, the TWD/JPY rate is about 4.85, meaning 1 TWD can exchange for 4.85 yen. Compared to 4.46 at the start of the year, the yen has appreciated about 8.7%, marking a significant annual increase.

Short-term Factors The US is entering a rate-cut cycle, supporting the yen. However, global arbitrage trading still carries risks—when arbitrage positions are closed, the yen may temporarily retrace 2-5%, and USD/JPY could fluctuate back to 155.

Medium to Long-term Trends The BOJ’s rate hikes remain the main theme, and the yen’s appeal as a safe-haven asset is increasing. It is forecasted that USD/JPY will operate below 150 in the medium to long term.

Exchange Suggestion: It’s advantageous to exchange now, but it’s recommended to do so in batches to avoid timing risks. Notably, Taiwan’s yen exchange demand increased by 25% in the second half of the year, mainly driven by travel recovery and hedging needs.

Deep Comparison of Taiwan’s 4 Major Yen Exchange Channels

1. Foreign Currency ATM: The Fastest Solution

Operation Process Use a chip-enabled financial card at a bank’s foreign currency ATM to withdraw yen cash, available 24/7. Interbank transfer fees are only NT$5 (deducted directly from TWD account). The daily withdrawal limit at E.SUN Bank’s foreign currency ATM is equivalent to NT$150,000, with no additional exchange fee.

Cost Analysis (for NT$50,000) Loss of about NT$800-1,200. Main costs come from the spread between cash rate and spot rate.

Pros and Cons

• Pros: Instant到账, 24/7 operation, lowest interbank transfer fee, flexible amounts
• Cons: Only about 200 locations nationwide, fixed denominations (1,000/5,000/10,000 yen), cash may sell out during peak hours, ATM services will be adjusted by end of 2025

Ideal for: Urgent needs, time-sensitive situations, medium amounts

2. Online Transfer + In-Branch Pickup: Top Choice for Travelers

Operation Process No need to open a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notification to pick up in person. Both Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service, with options to reserve at airport branches (14 Taiwan Bank locations at Taoyuan Airport, 2 open 24 hours).

Cost Analysis (for NT$50,000) Loss of about NT$300-800. Taiwan Bank’s online transfer is fee-free (pay NT$10 via Taiwan Pay), with about 0.5% better exchange rate than in-branch cash.

Pros and Cons

• Pros: Better exchange rate, often fee-free, airport pickup available, easy operation
• Cons: Need to reserve 1-3 days in advance, pickup branch cannot be changed, only during bank hours

Ideal for: Well-planned travelers, those preparing for trips

3. Online Exchange + ATM Withdrawal: For Long-term Investors

Operation Process Use online banking or app to convert TWD into yen and deposit into a foreign currency account (using spot sell rate). If cash is needed, withdraw in branch or via ATM, incurring spread handling fees (from NT$100). E.SUN Bank’s withdrawal fee for yen cash is the spread difference, minimum NT$100.

Cost Analysis (for NT$50,000) Loss of about NT$500-1,000. The main advantage is the ability to buy in batches to average costs and catch low-rate moments.

Pros and Cons

• Pros: 24/7 operation, flexible batch buying, better rates, can invest in yen deposits
• Cons: Need to open a foreign currency account first, withdrawal fees apply, requires basic foreign currency knowledge

Ideal for: Experienced foreign currency users, planning to hold yen deposits or ETFs

4. In-branch Cash Exchange: Backup Option

Operation Process Bring cash directly to a bank branch or airport counter to exchange for yen cash. Uses “cash selling rate” (1-2% worse than spot rate), simple but most costly.

Cost Analysis (for NT$50,000) Loss of about NT$1,500-2,000. Taiwan Bank’s cash selling rate is about NT$0.2060 per yen, with some banks charging an additional NT$100-200 fee.

Below are the cash selling rates and fees of various banks as of December 10, 2025:

Pros and Cons

• Pros: Safe, reliable, full denominations, staff assistance
• Cons: Spread loss, limited operating hours (Weekdays 9:00-15:30), additional fees increase cost

Ideal for: Less familiar with online operations, small urgent needs, seniors or beginners

Complete Cost Table for 4 Exchange Methods

After Exchanging Yen: Don’t Let It Sit Idle

If you already have yen cash, it’s recommended to shift toward active income strategies rather than letting it depreciate.

Yen Fixed Deposit The safest option. E.SUN Bank and Taiwan Bank’s foreign currency accounts allow online deposits starting from 10,000 yen, with current annual interest rates of 1.5-1.8%.

Yen Insurance Policies Medium-term holding. Cathay and Fubon life insurance savings policies offer guaranteed interest rates of 2-3%, suitable for plans over three years.

Yen ETFs Growth-oriented allocation. Yuanta 00675U tracks the yen index, with a management fee of 0.4% annually. Can be bought as fractional shares via broker apps for diversification.

Foreign Currency Swing Trading Advanced approach. Trade USD/JPY, EUR/JPY on foreign exchange platforms to capture short-term rate fluctuations, with zero commissions, low spreads, long/short options, and 24-hour markets. Suitable for experienced swing traders.

FAQ

Q: What’s the difference between cash rate and spot rate? Cash rate applies to physical cash transactions, with a worse rate (about 1-2%). The advantage is immediate delivery; spot rate involves electronic settlement (T+2), closer to international market rates and more favorable, but requires waiting for settlement.

Q: How many yen can I get with NT$10,000? Using Taiwan Bank’s December 10, 2025 rate, cash selling rate of about 4.85, NT$10,000 can get approximately 48,500 yen. Using spot sell rate (~4.87), about 48,700 yen, a difference of roughly 200 yen (NT$40).

Q: What ID do I need to exchange foreign currency? Taiwanese: ID card + passport; Foreigners: Passport + residence permit. If pre-booked online, bring transaction notification. Under 20 needs parent’s consent; large amounts over NT$100,000 may require source of funds declaration.

Q: What’s the limit for ATM withdrawal? Varies by bank. CTBC, Taishin: NT$120,000-150,000/day; E.SUN: NT$50,000 per transaction, NT$150,000/day. From October 2025, many banks will limit third-tier digital accounts to NT$100,000/day to prevent fraud. Consider splitting withdrawals or using your own bank card to avoid cross-bank fees.

Summary

The yen is no longer just for travel pocket money but also a hedging and small investment asset. Whether for next year’s Japan trip or TWD depreciation hedging, mastering “batch exchange + don’t leave it idle” principles can minimize costs and maximize returns.

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