Japanese Yen Exchange Guide: Airport, Bank, ATM – Which Method Saves the Most Money?

Is now a good time to exchange for Japanese yen?

By mid-December 2025, the TWD/JPY exchange rate is about 4.85, which has appreciated over 8% from the 4.46 level at the beginning of the year. This is not just a figure that travelers should pay attention to, but also an opportunity for investors to hedge risks.

The Bank of Japan is about to raise interest rates, with market expectations of a 0.25 basis point hike to 0.75% at the December meeting (a 30-year high), and Japanese bond yields reaching a 17-year high of 1.93%. Meanwhile, USD/JPY has fallen from a high of 160 to 154.58, and in the short term may oscillate around 155, but in the medium to long term, it is expected to continue declining below 150.

In conclusion: It’s suitable to exchange in batches now, but choosing the right method is key to avoid paying unnecessary extra costs.

Is it worth exchanging for JPY? Three perspectives

Travel and daily expenses

Tokyo, Osaka, Okinawa — Japan remains the top destination for Taiwanese travelers. Most local stores only accept cash (credit card penetration is about 60%), and purchasing agents or online shopping in Japan require payment in yen. This is the most direct demand for currency exchange.

Safe-haven asset attribute

The yen has long been one of the three major safe-haven currencies alongside the USD and Swiss franc. Japan’s economy is stable, public debt ratio is high but financing costs are low, and during market risk surges, funds flow into the yen — for example, during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, while the stock market fell 10%, providing effective hedging. For Taiwanese investors, exchanging for yen is akin to insuring against Taiwanese stock market risks.

Arbitrage and yield

Japan’s ultra-low interest rate (currently only 0.5%) makes the yen a “funding currency.” Many institutions borrow low-interest yen and convert to higher-yield USD investments, with a USD/JPY interest rate differential of 4.0%. When risks rise, they close positions and buy back, creating arbitrage opportunities. For investors experienced in forex trading, this can be an additional source of profit.

Comparing 4 ways to exchange for yen in Taiwan

Many think that just going to a bank is enough, but the difference in exchange rates alone can cost you an extra 2,000 TWD. Here is a full breakdown of costs.

Method 1: Bank counter or airport cash exchange

Using cash directly via traditional channels, this is the most popular method but also the most expensive.

Banks use “cash selling rates” (1-2% worse than spot rates). For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 TWD/JPY (meaning 1 TWD = 4.85 JPY). Some banks also charge fixed handling fees, around 100-200 TWD per transaction.

Exchanging at the airport is even less cost-effective — airport duty-free shops’ rates are often 0.5-1% worse than banks, but it’s very convenient for urgent needs.

Estimated cost: 50,000 TWD exchange results in a loss of about 1,500-2,000 TWD

Suitable for: People who dislike hassle, need cash urgently, or are not familiar with online operations

Method 2: Online exchange + foreign currency account + ATM or counter withdrawal

Use bank apps or online banking to convert TWD into JPY and deposit into a foreign currency account, enjoying “spot selling rates” (about 1% better than cash selling). For cash withdrawal, use foreign currency ATMs or counters, incurring additional withdrawal fees (interbank around 5-100 TWD).

E.SUN Bank and Bank of Taiwan support this service. E.SUN’s foreign currency ATM allows direct withdrawal of JPY from TWD accounts, with a daily limit of 150,000 TWD equivalent, and no currency exchange fee.

This method’s advantage is 24-hour operation, allowing you to buy in batches when the rate is low (e.g., when TWD/JPY drops below 4.80), reducing average costs.

Estimated cost: 50,000 TWD exchange results in a loss of about 500-1,000 TWD

Suitable for: Those with forex accounts and experience, wanting to invest gradually

Method 3: Online currency exchange + airport pickup (recommended)

The smartest approach — no need for a foreign currency account, just book online through the bank’s website and choose airport branch pickup. Taiwan Bank’s “Easy Purchase” online exchange is fee-free (pay with TaiwanPay, only 10 TWD), with about 0.5% better rates.

Taoyuan Airport has 14 Taiwan Bank counters, including 2 open 24 hours, allowing you to pick up cash directly before departure — very convenient. Mega International Bank also offers similar services.

Estimated cost: 50,000 TWD exchange results in a loss of about 300-800 TWD

Suitable for: Planning travelers who want to withdraw cash at the airport before departure

Method 4: Foreign currency ATM 24-hour self-service withdrawal

Use a chip-enabled financial card at foreign currency ATMs to withdraw cash in JPY directly, unrestricted by business hours. TWD account withdrawals cost only about 5 TWD in interbank fees, very cheap.

However, the drawbacks are limited locations (about 200 nationwide), fixed denominations (1000/5000/10000 JPY), and cash shortages during peak times. It’s recommended not to wait until the last minute to avoid missing out.

Estimated cost: 50,000 TWD exchange results in a loss of about 800-1,200 TWD

Suitable for: People with no time for counters or sudden cash needs

Cost comparison of 4 methods

Actual rates at airport currency exchange counters (2025/12/10)

Taiwan Bank’s rate is the most reference-worthy; when withdrawing at the airport, it’s recommended to choose Taiwan Bank counters.

Foreign currency ATM withdrawal limits (latest regulation)

After the October 2025 update, the ATM withdrawal limits are as follows:

Note: Many third-party digital accounts have reduced limits to 100,000 TWD/day. During peak airport hours, cash may run out quickly. It’s advisable to plan ahead or split withdrawals.

What happens after exchanging yen back home? Don’t let your money sit idle without interest

After exchanging for yen, many people just keep it in their wallet or passbook, but there are smarter ways to grow your assets.

Yen fixed deposit: The most stable option. E.SUN and Bank of Taiwan support foreign currency accounts, with online deposits. Minimum 10,000 yen, annual interest rate 1.5-1.8%.

Yen insurance policies: Medium-term holding options. Cathay Life and Fubon Life offer savings insurance with guaranteed interest rates of 2-3%.

Yen ETFs (00675U, 00703): Growth-oriented investments. Yuanta’s 00675U tracks the yen index, can be bought as fractional shares via broker, suitable for dollar-cost averaging. Management fee is 0.4% annually.

Forex trading: Directly trade USD/JPY, EUR/JPY to capture exchange rate fluctuations. Both long and short positions, 24-hour trading, small capital can operate.

Common questions about exchanging for yen

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

Cash rate applies to physical bills and coins, suitable for travel currency exchange. Its advantage is immediate delivery, but it’s usually 1-2% worse than the spot rate plus handling fee. Spot rate is used for electronic transfers (T+2 settlement), offering better rates but requiring waiting. In simple terms: use cash rate for cash needs, spot rate if not in a rush.

Q: How much yen do I get for 10,000 TWD?

Multiply by the current rate. For example, Taiwan Bank’s cash selling rate of 0.2060 TWD/JPY means about 48,500 JPY for 10,000 TWD. Using the spot rate of 0.2055, it’s about 48,780 JPY, a difference of roughly 280 JPY (about 60 TWD).

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

ID card + passport. Under 20s need a parent present. Large amounts (over 100,000 TWD) may require source of funds declaration. If pre-booked online, also bring transaction notification.

Q: Are there traps at airport currency exchange?

The main trap is the exchange rate difference. Airport duty-free shops and some exchange counters often have rates 0.5-1% worse than banks. It’s recommended to pre-book Taiwan Bank or Mega International Bank online, pick up at the airport — safe, cost-effective, and avoid long queues.