The 4 Major Yen Exchange Traps Revealed | Understand Taiwanese Dollar Exchange in One Go

Japan is one of the countries with the lowest currency values worldwide, yet the Japanese Yen is the most sought-after foreign currency. In December 2025, the TWD to JPY exchange rate hit 4.85, a recent high. But did you know? Exchanging 50,000 TWD through different channels results in a maximum loss of only 2,000 NT—just choosing the wrong method can mean wasting a big meal.

Today, we break down the hidden costs of four methods to exchange for Yen and when to act.

Why is now a good time to exchange for Yen?

The Yen appreciation cycle has begun

So far this year, the TWD to JPY has appreciated by 8.7% (from 4.46 at the start of the year to 4.85 now). What’s the background? The Bank of Japan Governor Ueda Kazuo has turned hawkish, expecting a rate hike to 0.75% on December 19 (a 30-year high), attracting continued safe-haven capital inflows.

At the same time, global economic uncertainty is rising—during the Russia-Ukraine conflict, the Yen appreciated 8% in a week, easing stock market declines. For Taiwanese investors, holding Yen is not just for leisure but also a tool to hedge against Taiwan stock volatility.

Foreign exchange demand surged 25% in the second half

Data shows that tourism recovery plus safe-haven allocation have caused a surge in Yen demand in Taiwan. What does this mean? High market recognition, good liquidity, and easy exit.

But the key question is: Is now a good time to exchange? How to do it most cost-effectively?

Four ways to exchange currency, with big cost differences

Trap 1｜Traditional bank counter exchange: the “safest” but most “expensive”

Walking into a bank branch or airport counter to exchange TWD for Yen cash is the most common method, but also the most costly.

Why? Cash selling rate.

Banks do not use the spot rate (real-time market price) but offer a 1-2% discount. For example, Taiwan Bank’s cash selling rate is about 0.2060 TWD/JPY (roughly 4.85 TWD per Yen), which is less favorable than the market rate. Some banks also charge an additional 100-200 NT fee.

Cost to exchange 50,000 TWD: lose 1,500-2,000 NT

When to use? Urgent airport cash needs, small amounts, or distrust of online methods.

Trap 2｜Online exchange but withdrawal as cash: save a bit, still has costs

Prefer not to use bank cash rates? Use online apps to exchange at the spot rate (about 0.2059, 1% better than cash). Deposit the foreign currency into an account, then withdraw via ATM or counter when needed.

Hidden cost? Withdrawal fees.

Transferring Yen cash from a TWD account incurs cross-bank fees of 5-100 NT. Small amounts are not cost-effective.

Cost to exchange 50,000 TWD: lose 500-1,000 NT

When to use? Already have a foreign currency account, plan for long-term Yen investment, or accept exchange delays.

Trap 3｜Online currency settlement + airport withdrawal: smartest pre-trip operation

No need for a foreign currency account. Just go to the bank’s website, select “Online Currency Settlement,” fill in currency, amount, and pickup location (airport or branch). After completing, bring ID and notification to pick up.

Advantages? Taiwan Bank’s “Easy Purchase” has no fee (using TaiwanPay costs only 10 NT), with a 0.5% better rate.

You can also reserve at 14 Taoyuan Airport locations, including 2 open 24 hours, for direct pickup before departure—no need to carry cash in advance.

Cost to exchange 50,000 TWD: lose 300-800 NT

When to use? Well-planned trips, knowing departure date, and wanting to pick up cash at the airport.

Cons: requires 1-3 days reservation, and branches cannot modify.

Trap 4｜Foreign currency ATM withdrawal: most flexible but with limits

Bank foreign currency ATMs operate 24/7, allowing Yen cash withdrawal with a chip card. Single cross-bank withdrawal fee is only 5 NT, cheaper than counter. E.SUN Bank allows withdrawal from TWD account without currency exchange fee, with a daily limit of 150,000 NT.

Issue? Limited locations (about 200 nationwide), cash shortages during peak times.

At airports and stations, foreign currency ATMs often run out of bills during travel seasons, especially 5,000 Yen notes.

Cost to exchange 50,000 TWD: lose 800-1,200 NT

When to use? Emergency withdrawals, no time to visit banks, small amounts.

Plan ahead—don’t wait until just before takeoff.

Is it worth exchanging Yen now? Staggered approach is best

Short-term fluctuation range: 154-156

The US rate hike cycle has started, weakening the dollar and supporting Yen. But the BOJ’s rate hike expectations are already priced in, so short-term USD/JPY may rebound to around 155. Medium to long-term? Forecast below 150.

Exchange in installments for average cost.

Don’t exchange everything at once. Do it in 3-4 rounds, when TWD/JPY drops below 4.80. Even if short-term fluctuations are 2-5%, this protects your principal.

After exchanging, don’t just sit idle—let Yen earn interest

Yen fixed deposits offer annual interest rates of 1.5-1.8%. Regular Yen ETFs (like 00675U, 00703) can capture appreciation potential. Yen insurance policies guarantee 2-3% interest. You can also trade USD/JPY or EUR/JPY on forex platforms, with zero commissions, both long and short, 24/7.

Quick comparison table｜At a glance

My advice? Small travel amounts choose foreign currency ATMs; before traveling, use online settlement; large investments combine online exchange with fixed deposits.

FAQ

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

Cash rate applies to physical cash buying/selling, with worse rates (banks add margin); spot rate is used for electronic transfers and account transfers, close to international market prices, with 1-2% better rates.

Q. How much Yen for 10,000 TWD?

Based on December 10 rate of 4.85, about 48,500 Yen. Using spot rate (4.87), about 48,700 Yen.

Q. What to bring for counter exchange?

ID + passport (foreigners bring passport + residence permit). For online reservation, also bring transaction notification. Under 20 need parental consent; amounts over 100,000 NT may require source of funds declaration.

Q. What’s the withdrawal limit at foreign currency ATMs?

Varies by bank. CTBC, Taishin Bank: about 120,000-150,000 NT/day; E.SUN: about 150,000 NT/day (including cross-bank). After 2025 reforms, limits are often reduced to 100,000-150,000 NT; consider multiple withdrawals.

Summary｜Seize the opportunity, avoid losses

Yen is no longer just for travel; it’s a safe-haven asset amid global market turbulence. Japan, the country with the lowest currency value, has the most trusted currency worldwide.

The current rate of 4.85 is a high point for the year, but that doesn’t mean chasing the high. The key is staggered exchange + smart channel selection + don’t just sit idle after exchanging.

First-timer tip? Download Taiwan Bank’s app, try online settlement, and reserve airport pickup. Deposit into fixed deposits or ETFs for small, steady gains. Once familiar, consider forex trading for swings.

This way, you not only save money on travel but also add a layer of protection amid global volatility.