Yen exchange rate hits a new high? 2025 Taiwan dollar to Japanese yen practical currency exchange guide

This year’s story of the Japanese Yen is changing. On December 10, the TWD/JPY exchange rate surged to 4.85, up 8.7% from 4.46 at the beginning of the year. This is not just news for travelers, but also a signal that investors are starting to pay attention. Why? Because the Yen is no longer just petty cash for vacations; it is becoming a key component in global asset allocation.

Why are so many people exchanging for Yen now?

Highlighting its status as a safe-haven asset

The US dollar, Swiss franc, and Japanese Yen are known as the world’s three major safe-haven currencies. During last year’s Russia-Ukraine conflict, the Yen appreciated 8% in a single week, while the stock market fell 10%—this demonstrates the power of safe-haven assets. Taiwanese investors seeking to protect their assets amid market volatility are essentially hedging Taiwan stocks by exchanging for Yen.

Profit opportunities from exchange rate fluctuations

In the second half of 2025, Taiwan’s demand for currency exchange increased by 25%. Besides the recovery in tourism, more of this demand comes from investment allocation. The Bank of Japan’s Governor Ueda Kazuo’s hawkish stance has pushed expectations of rate hikes to 80%, with a projected increase to 0.75% on December 19 (a 30-year high). This suggests the Yen may further strengthen against the US dollar.

In contrast, the US is entering a rate-cut cycle, and this change in interest rate differentials is reshaping global capital flows.

The 4 most common exchange routes in Taiwan

Many think exchanging for Yen means going to a bank, but choosing different methods can result in costs that differ by up to 5 times. For example, exchanging 50,000 TWD:

1. Bank counter cash exchange—most traditional but highest cost

Bring cash TWD directly to a bank or airport counter to get Yen cash on the spot. This method uses the “cash selling rate” (about 0.206 TWD/JPY), which is 1-2% worse than the international market rate, plus some banks’ handling fees, resulting in a total loss of about 1,500-2,000 TWD.

Suitable only for small, urgent exchanges or airport needs.

2. Online exchange account—preferred by investors

Use bank apps or online banking to convert at the “spot selling rate” (about 0.2065 TWD/JPY) into a foreign currency account. The rate is about 1% better than counter exchange. To withdraw cash, additional handling fees apply (usually 100-200 TWD).

Advantages include 24-hour operation and the ability to stagger entries for average costs. Ideal for monitoring rates and gradually building positions when the TWD/JPY rate drops below 4.80. After exchange, funds can be transferred into Yen fixed deposits (annual interest 1.5-1.8%) or forex trading for continued appreciation.

Estimated loss: 500-1,000 TWD (half of counter exchange costs).

3. Online currency exchange with airport pickup—best for planned travelers

Pre-arranged via bank website, fill in amount, pickup branch, and date. Then just bring ID and transaction notification to pick up. Supported by Taiwan Bank and Mega Bank, with multiple counters at Taoyuan Airport (including 24-hour branches).

This method offers better rates (saving about 0.5%) and often no handling fee, making it ideal for pre-trip planning to ensure cash at the airport.

Estimated loss: 300-800 TWD.

4. Foreign currency ATM withdrawal—most flexible but with limits

Use a chip-enabled bank card at foreign currency ATMs to withdraw Yen cash, supported 24/7 with a 5 TWD fee for interbank transactions. However, locations are limited (about 200 nationwide), with fixed denominations of 1,000, 5,000, and 10,000 Yen, which can run out during peak times.

Daily withdrawal limits vary by bank (often 100,000-150,000 TWD equivalent). Distributing withdrawals can avoid limit issues.

Estimated loss: 800-1,200 TWD, but offers time flexibility.

Cost comparison of the 4 methods

How to grow your Yen holdings? Don’t let your money sit idle

After exchanging for Yen, the next step determines actual gains.

Yen fixed deposit: Open a foreign currency account with a minimum of 10,000 Yen, annual interest 1.5-1.8%. Suitable for conservative investors.

Yen ETFs: For example, Taiwan-listed ETFs tracking the Yen index, can be bought in fractional shares, with about 0.4% annual management fee. Suitable for those wanting exposure to Yen appreciation without holding cash directly.

Forex trading: Trade USD/JPY or EUR/JPY on regulated forex platforms, with 24-hour bidirectional trading to capture short-term rate movements. An advanced option for investors.

Yen insurance policies: Yen-denominated savings insurance from life insurers, with guaranteed interest rates of 2-3%, suitable for medium-term holding.

Outlook for the Yen exchange rate in 2025

The Bank of Japan’s rate hike is now certain, but global arbitrage unwinding, Taiwan Strait tensions, or Middle East conflicts could influence the trend. USD/JPY has fallen from a high of 160 at the start of the year to 154.58; short-term may rebound to 155, but medium to long-term forecasts are below 150.

Investor advice: Don’t exchange all at once now, but stagger your entries. While the Yen remains supported as a safe-haven during rate cuts, risks of volatility exist. Diversifying entries can average costs and reduce exchange rate risk.

Quick answers to common currency exchange questions

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

Cash rate is the bank’s quote for physical cash, settled immediately but with a 1-2% spread. Spot rate is the electronic market price, settled T+2, more favorable, used for account transfers and import/export.

Q. How much Yen do I get for 10,000 TWD?

Using Taiwan Bank’s rate of 4.85 on December 10, 2025: 10,000 × 4.85 = 48,500 Yen (cash). Using the spot rate of 4.87, about 48,700 Yen, difference roughly 200 Yen (about 40 TWD).

Q. What do I need to bring for counter exchange?

ID + passport; foreigners bring passport + residence permit; under 20 need parent’s accompaniment; amounts over 100,000 TWD may require source of funds declaration. Pre-arranged online, also bring transaction notification.

Q. Are there limits on foreign currency ATM withdrawals?

Different banks have different limits; most domestic cards have daily limits of 100,000-150,000 TWD equivalent. Interbank cards depend on issuing bank, usually around 20,000 TWD per transaction. Plan ahead, split withdrawals, as peak times may cause shortages.

Final advice on currency exchange

The Yen has evolved from a simple travel currency to an asset with hedging and appreciation potential. The key is choosing the right exchange method, entering gradually at lows, and making your funds grow after exchange.

For beginners, starting with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM” is easiest. As experience grows, explore fixed deposits, ETFs, or forex trading. This not only reduces travel costs but also adds a layer of asset protection amid global market fluctuations.