Yen Exchange Battle: 4 Methods Compared, The Most Cost-Effective Exchange Method Revealed for 2025

This year’s Taiwan dollar continues to face depreciation pressure, prompting many to focus on the Japanese yen. As of December 10, 2025, the TWD/JPY exchange rate has risen above 4.85, up nearly 8.7% from the start of the year at 4.46. Coupled with the imminent rate hikes by the Bank of Japan, the investment and hedging value of the yen has come to the forefront. But how to exchange without losing out? We have compiled four major currency exchange channels, using data to show you the truly cost-effective options.

Why is now a good time to pay attention to the JPY exchange?

Many think of the yen as just “pocket money” for travel, but that’s not the case. The yen has a dual identity—both as a daily currency and a safe-haven asset.

Daily needs: travel, shopping, studying abroad—all require yen

Travel in Japan still relies mainly on cash (credit card penetration is only 60%). Shopping in Tokyo and Osaka, skiing in Hokkaido, or vacationing in Okinawa all require cash. Additionally, consumers who enjoy purchasing Japanese cosmetics, fashion, or anime merchandise often need to pay directly in yen. Those planning to study or work holiday in Japan also exchange currency in advance to handle sudden fluctuations.

Financial perspective: one of the world’s three major safe-haven currencies

Strong safe-haven attribute
The yen, along with the USD and Swiss franc, is one of the world’s three major safe-haven currencies, backed by Japan’s stable economy and low debt. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, effectively hedging stock market declines. For Taiwanese investors, holding yen isn’t just for travel—it’s also a risk hedge for Taiwan stocks.

Arbitrage opportunities from low interest rates
Japan maintains ultra-low interest rates (~0.5%), making the yen a “funding currency.” Many institutional investors borrow low-interest yen to exchange into higher-yield USD (USD-JPY interest differential up to 4.0%), then close positions when risks rise, buying back yen for profit. These arbitrage trades significantly impact exchange rates.

Recent rate hike expectations heating up
BOJ Governor Ueda Kazuo’s hawkish comments have increased market expectations of a rate hike to 0.75% (a 30-year high), with an 80% probability by December 19, 2025, up 0.25 basis points. Japanese bond yields have hit a 17-year high of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to 154.58 now, with short-term fluctuations around 155, but medium to long-term forecasts suggest a drop below 150.

Comparison of 4 major ways to exchange TWD to JPY in Taiwan

Choosing the wrong exchange channel can cost you several cups of drinks. We tested the latest rates to show you the real costs.

Option 1: Bank counter cash exchange (traditional but costly)

Bring TWD cash to a bank or airport counter to exchange for yen cash. Simple to operate but uses the “cash selling rate” (1-2% worse than spot rate), making it the most expensive. As of December 10, 2025, Taiwan Bank’s cash selling rate is 0.2060 TWD/JPY (1 TWD = 4.85 JPY). Some banks also charge handling fees.

Bank cash selling rate comparison (2025/12/10)

Pros: Safe, reliable, denominations available, staff assistance on-site
Cons: Rate difference, limited business hours, possible extra fees
Best for: Travelers unfamiliar with online operations, small amounts for urgent needs

Option 2: Online currency exchange to deposit account (for investors)

Use bank app or online banking to convert TWD to yen and deposit into a foreign currency account, using the “spot sell rate” (about 1% better than cash rate). If cash is needed later, withdraw at counters or via foreign currency ATMs, with additional fees (from 100 NT$).

Suitable for those observing exchange rate trends, entering gradually when TWD/JPY is below 4.80. E.SUN Bank, Taiwan Bank support this service, and you can also invest in yen deposits (current annual interest 1.5-1.8%) or yen ETFs.

Pros: 24/7 operation, dollar-cost averaging, better rates, convenient for deposits
Cons: Need to open foreign currency account first, withdrawal fees (interbank 5-100 NT$)
Best for: Forex-savvy investors planning to hold yen

Option 3: Online currency settlement with airport pickup (best pre-departure plan)

No need for a foreign currency account. Fill in currency, 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” and Mega Bank offer this service, with reservation options at airports.

Taiwan Bank’s online settlement has no handling fee (pay via TaiwanPay, only NT$10), with about 0.5% rate advantage. Taoyuan Airport has 14 Taiwan Bank counters, 2 of which operate 24 hours, very convenient.

Pros: Favorable rates, often no fees, easy airport pickup
Cons: Need prior reservation (1-3 days), limited pickup times, branch cannot be changed
Best for: Planned travelers who want to withdraw directly at the airport

Option 4: Foreign currency ATM withdrawal (most flexible but fewer locations)

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen cash 24/7, with only NT$5 cross-bank fee. For example, SinoPac’s foreign currency ATMs allow withdrawal from TWD accounts, with a daily limit of NT$150,000, no exchange fee.

However, ATM locations are limited (~200 nationwide), denominations are fixed (1,000, 5,000, 10,000 JPY), and cash may run out during peak times. Not recommended for last-minute needs; plan ahead.

Pros: Instant withdrawal, 24/7 access, from TWD account saves cross-bank fees
Cons: Limited locations, fixed denominations, possible cash shortages
Best for: Those with no time to visit banks or urgent cash needs

Which exchange method is most cost-effective for 50,000 TWD?

We tested the actual costs for exchanging 50,000 TWD across different options:

Summary: For budgets of NT$50,000-200,000, “online exchange + airport pickup” offers the best balance of low fees and favorable rates.

Is now a good time to buy JPY? What signals to watch?

By the end of 2025, the yen remains volatile. From 4.46 at the start of the year to 4.85 now, appreciating 8.7%, Taiwanese investors have already gained significant forex returns. In the second half, Taiwan’s forex demand grew by 25%, driven by travel recovery and hedging needs.

Short-term volatility risks
The US has entered a rate-cutting cycle, supporting the yen. But closing arbitrage positions could cause short-term swings of 2-5%. It’s advisable to buy gradually rather than all at once.

Medium to long-term trend
BOJ rate hikes are bullish for the yen, but global arbitrage unwinding or geopolitical tensions (Taiwan Strait, Middle East) could weaken it. USD/JPY may oscillate around 155 short-term, but the medium-term target could fall below 150, implying the TWD/JPY could rise above 5.0.

Investment advice
Yen is a good hedge for Taiwan stocks, but diversify risk. Consider yen ETFs (e.g., Yuanta 00675U, annual fee 0.4%) over simple deposits. Dollar-cost averaging can help reduce costs.

How to use after buying yen? Four advanced allocations

Don’t let your yen sit idle with zero interest—consider these four advanced options:

1. Yen fixed deposit
Deposit via E.SUN or Taiwan Bank online, starting from 10,000 yen, with annual interest of 1.5-1.8%, the safest choice.

2. Yen insurance policies
Cathay, Fubon life savings insurance, offering guaranteed 2-3% interest, suitable for medium-term holding.

3. Yen ETFs (00675U, 00703)
Yuanta 00675U tracks the yen index; buy fractional shares via broker apps, suitable for dollar-cost averaging and diversification.

4. Forex swing trading
Trade USD/JPY or EUR/JPY on 24-hour forex platforms, suitable for experienced swing traders.

Quick reference for other foreign exchange rates

Recently, some ask about RMB exchange rates. With TWD/RMB around 4.4, 1,000 RMB ≈ NT$4,400, which is cheaper than yen. But RMB is more volatile and less safe as a hedge compared to yen.

Common forex Q&A

Q: What’s the difference between cash rate and spot rate?
Cash rate is the bank’s buy/sell rate for physical notes/coins, usually 1-2% worse than spot. Spot rate is the T+2 settlement rate in the forex market, more favorable but requires waiting.

Q: How much yen for NT$10,000?
Using Taiwan Bank’s cash selling rate of 4.85, NT$10,000 ≈ 48,500 JPY. Using spot rate (~4.87), about 48,700 JPY—difference of roughly 200 JPY.

Q: What ID do I need to exchange foreign currency?
Taiwanese: ID card + passport; foreigners: passport + residence permit. For corporate exchanges, business registration needed. Online reservations require transaction notices. Under 20 need parental consent; over NT$100,000 may require source of funds declaration.

Q: What’s the limit for foreign currency ATM withdrawals?
Limits vary by bank (as of October 2025, due to new anti-fraud measures):

Tip: Post-2025 limits mostly reduced to NT$100,000-150,000 daily. Spread withdrawals or use your bank’s card to avoid cross-bank fees. Plan ahead as cash shortages may occur during peak times.

Final advice

The yen is no longer just a travel currency; it’s also a hedging and investment asset. Whether traveling to Japan next year or hedging against TWD depreciation, following the principles of “gradual exchange + not leaving money idle” can minimize costs and maximize gains.

Beginners should start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then, based on needs, move yen into deposits, ETFs, or swing trading. This way, traveling becomes more economical, and you gain an extra layer of protection amid global market volatility.