Should you exchange TWD for JPY now? First, check the exchange rate trend before deciding.

December 10, 2025, the Taiwan dollar against the Japanese yen surged to 4.85, up 8.7% from 4.46 at the beginning of the year. If you’re still debating “Is now a good time to exchange?”, the answer is: You can exchange, but do it wisely.

Why is it worth exchanging for Japanese yen?

Many think exchanging for yen is just for traveling abroad, but there are deeper reasons behind it.

Travel and consumption: Japan’s cash culture still dominates, with only about 60% credit card penetration. Purchasing agents, drugstores, anime merchandise all require yen.

Financial investment: The yen is one of the world’s three major safe-haven currencies (along with USD and Swiss Franc). When Taiwan stocks are volatile, holding yen can hedge risks. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, effectively buffering stock declines. Plus, the Bank of Japan is about to raise interest rates (Governor Ueda’s hawkish comments pushed market expectations to 80%, with a rate hike of 0.25 basis points to 0.75% expected on December 19), and Japanese government bonds’ yields have hit a 17-year high of 1.93%, putting medium-term upward pressure on the yen.

So, exchanging for yen now isn’t just for travel; it’s also an asset allocation option.

Four ways to exchange currency, with significant cost differences

Using the same 50,000 TWD, choosing different methods could cost an extra 1,500 or save 800. Let’s clarify with the latest rates.

Method 1: Bank or airport counter exchange (most traditional, highest cost)

Bring cash TWD to a bank branch or airport counter to exchange for yen on the spot. Simple and convenient, but uses the “cash selling rate,” which is 1-2% worse than the spot rate, resulting in a total loss of about 1,500-2,000 TWD (based on 50,000 TWD).

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 TWD/JPY (1 TWD = 4.85 JPY). Some banks also charge a handling fee of 100-200 TWD.

Advantages: Safe, denominations available, staff assistance
Disadvantages: Exchange rate spread, limited business hours (Weekdays 9:00-15:30), handling fees
Suitable for: Urgent airport needs, small amounts for temporary exchange

Bank rate overview (updated 2025/12/10 9:30):

• Taiwan Bank: 0.2060 TWD/JPY, no handling fee
• Mega International Bank: 0.2062, no handling fee
• E.SUN Bank: 0.2067, 100 TWD per transaction
• Cathay United Bank: 0.2063, 200 TWD per transaction
• Fubon Bank Taipei: 0.2069, 100 TWD per transaction

Method 2: Online currency exchange + counter or ATM withdrawal (medium cost)

Use bank app to convert TWD to yen, deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling rate). Then, withdraw cash at a counter or via foreign currency ATM. Withdrawal incurs a spread fee (minimum 100 TWD), with total losses around 500-1,000 TWD.

Advantages: 24/7 operation, better exchange rates, can average costs over time
Disadvantages: Need to open a foreign currency account first, withdrawal fees apply
Suitable for: Experienced forex users, regular foreign currency account holders, aiming to buy at lower rates

This method is also suitable for yen fixed deposits, which currently offer annual interest rates of about 1.5-1.8%.

Method 3: Online currency settlement + airport pickup (highest cost-performance)

No need for a foreign currency account. Just input amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” online settlement is fee-free (pay via TaiwanPay, only 10 TWD), with about 0.5% favorable exchange rate, resulting in only 300-800 TWD loss—the best plan before traveling abroad.

Taoyuan Airport has 14 Taiwan Bank branches, 2 of which operate 24 hours, allowing direct appointment for airport pickup without visiting the bank separately.

Advantages: Favorable rates, often no handling fee, airport pickup
Disadvantages: Need to book 1-3 days in advance, branch appointments cannot be changed
Suitable for: Well-planned travelers with confirmed travel dates

Method 4: Foreign currency ATM withdrawal (most flexible, but with limits)

Use a chip-enabled bank card to withdraw yen at foreign currency ATMs, supporting 24-hour operation, interbank (interbank fee only 5 TWD), no forex handling fee. Losses are about 800-1,200 TWD.

Note: ATM withdrawal limits vary by bank. From October 2025, due to anti-fraud measures, most banks have lowered limits to 100,000-150,000 TWD per day. For example:

• CTBC Bank: approx. 120,000 TWD/day
• Taishin Bank: approx. 150,000 TWD/day
• E.SUN Bank: 50,000 TWD per transaction, 150,000 TWD per day

Plan ahead during peak times (like at airports), as foreign currency ATMs may run out of cash.

Advantages: Instant, flexible, deduct from TWD account to save costs, 24/7
Disadvantages: Limited locations (~200 nationwide), fixed denominations, possible shortages during peak times
Suitable for: Urgent needs, no time to visit bank

Cost comparison table for four methods

Beginner tip: Start with “online settlement + airport pickup” or “foreign currency ATM” for lowest cost and maximum flexibility.

Future outlook for the yen: smarter to buy in installments

Is it a good time to exchange yen now? Yes, but don’t exchange all at once.

USD/JPY has fallen from a high of 160 at the start of the year to 154.58. Short-term, it may rebound to 155, but medium to long-term, it’s expected to fall below 150. The Bank of Japan is about to raise rates (expected on December 19 to 0.75%), and Japanese government bond yields hit a 17-year high of 1.93%, supporting the yen.

However, watch out for risks: unwinding global arbitrage trades or geopolitical conflicts (Taiwan Strait/Middle East) could cause 2-5% volatility in the yen. Therefore, installment exchange is the best strategy to avoid being caught in a sudden drop.

After exchanging yen, don’t let it sit idle

Once you’ve exchanged yen, the next step is crucial. Here are four options suitable even for small-scale beginners:

1. Yen fixed deposit: E.SUN, Taiwan Bank foreign currency accounts, starting from 10,000 yen, with annual interest of 1.5-1.8%

2. Yen insurance policies: Cathay, Fubon life savings insurance, with guaranteed interest rates of 2-3%

3. Yen ETFs: such as Yuanta 00675U (annual management fee 0.4%), tracking yen index, available as fractional shares via broker apps

4. Forex swing trading: trade USD/JPY or EUR/JPY on platforms like Mitrade, with long/short options, 24-hour trading, zero commission, low spreads, with tools for stop-loss, take-profit, trailing stops

While yen is a safe-haven, it also fluctuates bidirectionally. For investment, yen ETFs diversify risk; for short-term trading, forex is a classic approach.

Common questions about exchanging yen

Q: How big is the difference between cash rate and spot rate?

Cash rate (physical cash) is usually 1-2% worse than the spot rate (T+2 settlement). For example, converting 10,000 TWD at cash rate yields about 48,500 JPY, while at spot rate about 48,700 JPY—difference of 200 JPY (roughly 40 TWD). Although small per transaction, large amounts can significantly increase costs.

Q: What do I need to bring for foreign currency exchange?

Counter exchange: ID + passport; online booking: also bring transaction notice; under 20 years old: must be accompanied by parent; large exchanges (over 100,000 TWD): may require source of funds declaration.

Q: Are there withdrawal limits at foreign currency ATMs?

Yes. From October 2025, many banks have tightened limits to 100,000-150,000 TWD per day. For example:

• CTBC: approx. 120,000 TWD/day
• Taishin: approx. 150,000 TWD/day
• E.SUN: 50,000 TWD per transaction, 150,000 TWD/day

Plan ahead, especially at peak times like airports, as cash may run out.

Final advice

Yen is no longer just pocket money for travel; it’s an asset with hedging and investment value. Whether traveling or asset allocation, following the principles of “installment exchange + don’t leave it idle” can minimize costs and maximize returns.

Start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then move into fixed deposits, ETFs, or swing trading based on your needs. This way, you’re not only saving on travel costs but also adding a layer of protection during global market fluctuations.