Is it worth exchanging Japanese Yen now? The latest 2025 currency exchange plan practical guide

In December 2025, the TWD to JPY exchange rate reached 4.85. Is this exchange rate level advantageous for those planning to travel abroad or invest in yen? Instead of debating “when is the perfect timing,” it’s better to understand the 4 most cost-effective channels to exchange for yen right now.

Current Timing: To Exchange or To Wait?

Since the beginning of the year, the yen has appreciated over 8.7% (from 4.46 to 4.85), which is quite significant. But deciding whether to exchange now depends not only on the exchange rate movement but also on the global central bank trends.

The Bank of Japan (BOJ) Governor Ueda Kazuo recently signaled a hawkish stance, with market expectations of a rate hike to 0.75% on December 19 (a 30-year high), which will further support the yen. Meanwhile, the US has entered a rate-cut cycle, narrowing the US-Japan interest rate differential, raising the risk of closing arbitrage positions.

Data shows: The USD/JPY has fallen from a high of 160 at the start of the year to 154.58. Short-term fluctuations may bring it to around 155, but medium to long-term forecasts suggest it could fall below 150. For Taiwanese investors, the yen is not just a travel currency but also a hedge against Taiwan stock market volatility—especially under the ongoing pressure of TWD depreciation.

Advice on whether to exchange: For short-term trips (within 1-3 months), exchanging now is reasonable; for long-term investment allocation, consider staggered entry to avoid full exposure to exchange rate risk.

The 4 Latest Yen Exchange Methods in Taiwan Fully Revealed

Many think bank counters are the only option, but just choosing different channels to exchange can save you hundreds or even thousands of NT dollars. Here’s a detailed analysis.

Method 1: Bank Counter Cash Exchange — Traditional but Costly

Bring NT cash directly to a bank or airport counter to buy yen cash. Simple to operate but the cash selling rate is generally 1-2% worse than the spot rate. For example, Taiwan Bank’s rate on December 10 was about 0.2060 NT$/JPY (1 NT$ = 4.85 yen). Some banks charge an additional NT$100-200 handling fee.

Recent statistics show that the rates and fees vary significantly among banks: Taiwan Bank and Hua Nan Bank offer around 0.2060-0.2061 with no fee; E.SUN and Taipei Fubon Bank offer around 0.2067-0.2069 but charge NT$100-200. Exchanging NT$50,000 could result in a loss of roughly NT$1,500-2,000.

Suitable for: Those unfamiliar with online operations, small urgent exchanges (like at the airport), or those requiring high security.

Method 2: Online Forex Transfer to Foreign Currency Account — Flexible and Batchable

Use bank apps or online banking to convert NT$ to yen at spot rates (better than cash rates by about 1%) and deposit into a foreign currency account. To withdraw cash, you need to go to a counter or use an FX ATM, incurring a fee starting from NT$100.

Advantages include 24-hour operation, allowing you to buy in batches when the rate is favorable (e.g., when NT$ to JPY is below 4.80). For example, after forex conversion via E.SUN Bank app, withdrawing cash incurs a minimal fee of NT$100, spreading out costs.

Highly flexible, suitable for those experienced in forex investment, and can also transfer yen into fixed deposits (current annual interest 1.5-1.8%) or ETFs. Estimated cost for NT$50,000 is NT$500-1,000.

Suitable for: Those observing exchange trends, with investment plans, or accustomed to financial apps.

Method 3: Online Currency Conversion + Branch Pickup — Best Before Travel

No need to open a foreign currency account in advance. Fill in currency, amount, and pickup branch on the bank’s website, then complete the transfer and pick up with ID and transaction notice at the counter. Taiwan Bank’s “Easy Purchase” online forex conversion is fee-free (using Taiwan Pay costs only NT$10), with about 0.5% favorable exchange rate. The key benefit is reservation for airport branch pickup—Taoyuan Airport has 14 Taiwan Bank outlets, 2 of which operate 24 hours.

Travelers with planning can book 1-3 days ahead, then pick up yen cash directly at the airport on departure, saving trips to city banks. Cost for NT$50,000 is about NT$300-800.

Suitable for: Well-planned travelers, those leaving soon, or wanting to withdraw at the airport.

Method 4: Foreign Currency ATMs — 24/7 Uninterrupted Withdrawal

Use a chip-enabled financial card at foreign currency ATMs to withdraw yen cash. Available 24/7, with interbank withdrawal fee of NT$5. The E.SUN foreign currency ATM supports direct withdrawal from NT$ accounts, with a daily limit of NT$150,000 and no forex fee.

Disadvantages include only about 200 foreign currency ATMs nationwide, limited denominations (usually 1,000/5,000/10,000 yen), and potential cash-out at peak times (like airports). Estimated cost NT$800-1,200.

Suitable for: Urgent needs, no time for counters, or flexible withdrawal requirements.

Cost Comparison Table of 4 Methods

Investment Suggestions After Getting Yen

Once you have cash or deposit yen into an account, don’t let the money sit idle without earning interest. Consider:

1. Yen Fixed Deposit
Most stable, open via E.SUN or Taiwan Bank online, starting from 10,000 yen, annual interest 1.5-1.8%. Suitable for risk-averse investors.

2. Yen Savings Insurance
Cathay or Fubon Life offer yen-denominated policies with guaranteed interest rates of 2-3%. Medium-term holding, longer lock-in.

3. Yen ETFs
Products like Yuanta 00675U, 00703 track yen indices, can be bought via brokerage apps, suitable for regular investment with management fees around 0.4% annually.

4. Forex Swing Trading
Trade USD/JPY or EUR/JPY directly, suitable for experienced traders. Benefits include two-way trading, 24-hour market, and small capital requirements.

Yen offers both hedging and potential returns, but also carries two-way volatility risks—interest rate hikes are positive, but arbitrage closing or geopolitical conflicts (Taiwan Strait/Middle East) may suppress prices. Beginners should start with fixed deposits or ETFs, then gradually explore swing trading.

Common FAQs About Yen Exchange

Q. What’s the difference between cash rate and spot rate?
Cash rate (Cash Rate) applies to physical cash transactions, with the advantage of immediate delivery but 1-2% worse than spot rate. Spot rate (Spot Rate) is used for electronic transfers or non-cash settlement, more favorable but settled T+2. In short, use spot rate when possible.

Q. How much yen can I get with NT$10,000?
Using Taiwan Bank’s cash selling rate of 4.85, NT$10,000 ≈ 48,500 yen; at spot rate 4.87, ≈ 48,700 yen. Difference is about 200 yen (NT$40).

Q. What do I need to bring for counter exchange?
Taiwanese: ID card + passport; foreigners: passport + residence permit; companies: business registration. Pre-booked transactions require the notice. Under 20 need parental consent; amounts over NT$100,000 may require source declaration.

Q. What is the daily withdrawal limit at foreign currency ATMs?
Post-2025 regulations, limits vary: CTBC supports NT$120,000; Taishin NT$150,000; E.SUN NT$50,000 (50 notes). It’s recommended to split withdrawals or use your bank’s card to avoid cross-bank fees, especially during peak hours.

Summary: Not Just Currency Exchange, But Asset Allocation

Yen has evolved from a “travel pocket money” to an asset with hedging and investment value. Whether for travel next year or for hedging amid TWD depreciation, the key is to follow the principle of staged exchange + immediate allocation.

Beginners should start with “Taiwan Bank online forex + airport pickup” or “foreign currency ATM,” then move into fixed deposits, ETFs, or swing trading based on amount and goal. This approach makes travel more cost-effective and adds a layer of protection during global market turbulence. Whatever currency you choose—yen, MYR, or others—the core logic remains: act promptly, diversify risks, and keep your funds moving rather than static.