Japanese Yen Exchange Guide | Cost Comparison of 4 Major Plans, How to Smartly Exchange Currency in the Era of US Dollar Depreciation

Understanding the Two Forms of Exchange Rates

Many people go directly to the bank to exchange yen, unaware of how much they are losing due to exchange rate differences. All of this stems from misunderstandings about the “cash rate” and the “spot rate.”

Cash Rate is the buying and selling price for physical banknotes, applicable for travelers exchanging currency on-site. The advantage is immediate cash receipt; the downside is that it is 1-2% worse than the market rate, plus handling fees.

Spot Rate is the true price in the foreign exchange market, settled within T+2 days, used for electronic transfers and foreign currency accounts. The rate is closer to international market prices.

Example: On December 10, 2025, Taiwan Bank’s cash selling rate is 1 JPY = 0.2060 TWD (i.e., 1 TWD = 4.85 JPY), but the online spot rate is about 4.87, making the difference your cost.

Using cash rate, 10,000 TWD exchanges for 48,500 JPY; with the spot rate, it’s 48,700 JPY—200 JPY difference may seem small, but for 100,000 TWD, that’s a 2,000 JPY loss.

4 Ways to Exchange Yen: Full Analysis

Option 1: Online Currency Exchange + Airport Pickup (Most Cost-Effective for Traveling Abroad)

No need to open a foreign currency account. Simply fill in the amount, currency, pickup branch, and time on the bank’s website. After remittance, bring your ID and transaction notification to pick up in person. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service, with appointment options at the airport.

Taiwan Bank’s online exchange rate offers a 0.5% discount, with a fee of only NT$10 when paying via Taiwan Pay (possibly free). Taoyuan Airport has 14 Taiwan Bank counters, including 2 open 24 hours, suitable for last-minute withdrawals before flights.

Advantages: Best exchange rates (close to market), often no handling fees, direct airport pickup avoids hassle
Disadvantages: Need to book 1-3 days in advance, pickup only during bank hours
Suitable for: Planned travelers, those who prefer pre-arranged schedules

Option 2: Foreign Currency ATM Self-Service Withdrawal (Highest 24/7 Flexibility)

Use a chip-enabled debit card at foreign currency ATMs to withdraw cash in yen. Supports 24-hour operation and interbank withdrawals (NT$5 fee from TWD account). Mega Bank’s foreign currency ATMs allow yen withdrawals from TWD accounts, with a daily limit of NT$150,000, no exchange fee.

Approximately 200 foreign currency ATMs nationwide, mainly in cities and airports. Note that denominations are fixed at 1,000/5,000/10,000 yen. During peak times (like at airports), cash may run out quickly—avoid peak hours.

Advantages: Instant withdrawal, deducts from TWD account avoiding interbank fees, maximum flexibility
Disadvantages: Limited locations and denominations, cash may be sold out during busy periods, not suitable for last-minute withdrawal
Suitable for: Emergency needs, those with no time to visit a bank branch

Option 3: Online Currency Exchange + In-Branch or ATM Withdrawal (Preferred for Forex Investors)

Open a foreign currency account at the bank, then use online banking or app to convert TWD to yen at the spot rate and deposit into the account. When cash is needed, withdraw. The handling fee for yen cash withdrawal at institutions like E.Sun Bank is the difference between spot and cash rates, starting at NT$100.

The main advantage is observing exchange rate trends, allowing for staggered entry at low points (e.g., TWD/JPY below 4.80), averaging costs. Also, yen in the foreign currency account can be transferred into fixed deposits (current annual interest 1.5-1.8%) or used to buy yen ETFs, suitable for those with investment goals.

Advantages: About 1% better rates, 24/7 operation, staggered entry, foreign currency accounts can be invested
Disadvantages: Need to open an account first, withdrawal incurs additional fees, requires basic forex knowledge
Suitable for: Experienced forex traders, long-term investors holding yen

Option 4: Bank Counter Cash Exchange (Traditional but Most Expensive)

Bring cash TWD directly to a bank branch or airport counter for on-the-spot yen exchange. Simple operation, staff assistance available, denominations available (1,000/5,000/10,000 yen), safe and reliable.

However, this is the most costly method. Using the cash selling rate (1-2% worse than spot), some banks also charge fixed handling fees (e.g., NT$100-200 at E.Sun, Mega, Cathay United). Total costs can reach NT$1,500-2,000 for NT$50,000. Recommended only as a backup.

Below are the cash selling rates and handling fees of various banks on December 10, 2025 (for reference; actual rates may vary):

Advantages: Safe, full denominations, staff assistance
Disadvantages: Rate spread, limited hours, higher costs due to fees
Suitable for: Small, urgent, unfamiliar with online methods

Cost Comparison of 4 Exchange Methods

Yen Market Outlook｜Is Now a Good Time to Exchange?

As of December 10, 2025, TWD/JPY is about 4.85, up from 4.46 at the start of the year, an appreciation of approximately 8.7%. For Taiwanese investors, forex gains from exchanging yen are quite substantial. In the second half of 2025, forex demand increased by 25%, mainly driven by travel recovery and hedging needs.

Yen’s Value in the USD Weakening Era

When USD weakens, JPY, as one of the world’s three major safe-haven currencies, often attracts capital. The Bank of Japan’s Governor Ueda recently made hawkish comments, pushing expectations of a 0.25% rate hike at the December 19 meeting to 0.75% (a 30-year high). Japanese government bonds’ yields hit a 17-year high of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58, with medium-long term forecasts below 150.

Two Major Considerations for Exchanging Yen

1. Travel Demand: Japan still relies heavily on cash (credit card penetration only 60%). Shopping in Tokyo and Osaka, skiing in Hokkaido, vacationing in Okinawa all require cash. Exchanging yen has become a necessity.

2. Hedging: Yen remains a safe-haven currency long-term. During Taiwan dollar depreciation and Taiwan stock volatility, holding some yen assets can hedge risks. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, buffering stock declines.

Investment Advice: Stagger Entries, Avoid Lying Flat

Exchanging yen now is profitable, but should be done in stages. The yen exchange rate remains volatile, possibly returning to 155 in the short term, with a risk of 2-5% fluctuation. It’s recommended to average costs by staggered exchange rather than all at once.

After acquiring yen, don’t let your money sit idle without interest. Consider:

• Yen Fixed Deposit: Stable, open at E.Sun/Taiwan Bank, annual interest 1.5-1.8%, starting from 10,000 yen
• Yen Insurance Policy: Medium-term holding, Cathay/Fubon savings insurance, guaranteed interest 2-3%
• Yen ETF: Growth-oriented, e.g., Yuanta 00675U tracking yen index, annual fee 0.4%, can buy fractional shares via broker app
• USD to JPY Forex Swing Trading: Directly trade USD/JPY or EUR/JPY, capture exchange rate fluctuations, 24-hour bidirectional trading

Common Q&A on Exchanging Yen

Q: How much yen for NT$10,000?

Formula: Yen amount = TWD amount × current rate. Using Taiwan Bank’s cash selling rate 4.85, NT$10,000 ≈ 48,500 JPY; with online spot rate 4.87, ≈ 48,700 JPY; difference of 200 JPY.

Q: What documents are needed to exchange foreign currency?

Taiwanese: ID card + passport; foreigners: passport + residence permit; companies: business registration. For online booking, bring transaction notification. Under 20 need parental consent; amounts over NT$100,000 may require source declaration.

Q: What is the daily withdrawal limit at Taiwanese foreign currency ATMs?

From October 2025, many banks limit to NT$100,000-150,000 per day. CTBC: NT$120,000; Taishin: NT$150,000; E.Sun: NT$150,000 (including debit). Use your own bank card to avoid cross-bank fees, and spread withdrawals to prevent cash shortages during peak times.

Q: Which is a better hedge—yen or USD?

Yen, USD, and Swiss Franc are the three major global safe-haven currencies. USD is suitable for long-term allocation; yen is better for short- to medium-term hedging. When global risks rise (e.g., geopolitical conflicts, stock crashes), yen often appreciates more than USD, making it an effective protection for Taiwan stock investors.

Summary

The yen has evolved from a “travel petty cash” to an asset with both hedging and investment value. Whether you plan to visit Japan next year or want to hedge against TWD depreciation and USD weakness, following the principles of staggered exchange + not lying flat after exchanging can minimize costs and maximize returns.

Beginners are advised to start with Taiwan Bank’s online exchange + airport pickup or foreign currency ATMs, then transition into fixed deposits, ETFs, or small forex swing trades based on needs. This way, you can enjoy more cost-effective trips abroad and add a layer of protection during global market fluctuations.