How to exchange Japanese Yen most cost-effectively! Comparison of costs across 4 major channels and the best timing

Is it really time to exchange for Japanese Yen? Market Analysis

As of December 2025, the TWD/JPY exchange rate has risen above 4.85, compared to 4.46 at the beginning of the year, with the Yen appreciating by a total of 8.7% in just one year. This increase is not a small number for those wanting to exchange for Yen—if you have 500,000 TWD to convert, the benefit from the exchange rate appreciation alone exceeds NT$35,000.

But the key to currency exchange isn’t just “is it worth it now,” but “how to do it most cost-effectively.” Many people simply walk into a bank or airport to exchange, unaware that choosing the wrong channel can cost an extra NT$1,500 to NT$2,000 per transaction. Below, we use real data to help you calculate clearly.

The 4 Main Channels for Exchanging TWD to Yen in Taiwan, with Large Cost Differences

First: Bank counter cash exchange (most traditional, highest cost)

Bring cash TWD directly to a bank branch or airport to exchange for Yen cash. This method is the simplest but also the most expensive. Banks sell Yen at the “cash selling rate” (1-2% worse than the normal rate), plus possible handling fees.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 TWD/JPY (meaning 1 TWD can buy 4.85 Yen). If you exchange NT$50,000 at the counter, you’ll get approximately 242,500 Yen, with a cost loss of about NT$1,500-2,000.

Quick reference for cash selling rates at various banks:

Who is suitable: Urgent need before travel, small amounts (under NT$5,000), unfamiliar with online methods

Second: Online exchange + airport pickup (top choice for travelers)

This is currently the most cost-effective method. You pre-book via bank app or website 1-3 days in advance, input the amount, pick-up branch, and date. The bank uses the “spot exchange rate” (about 1% better than cash rate), with low or no handling fees, and you pick up cash directly at the airport branch.

For example, Taiwan Bank’s “Easy Purchase” service, paying via TaiwanPay with NT$10 fee, offers about 0.5% better rate. Exchanging NT$50,000 can get you around 245,000-246,000 Yen, with only NT$300-800 in loss.

Key advantages:

• Exchange rate at least 1% better than counter (save NT$500-1,000)
• Handling fees often waived or very low
• Taoyuan Airport has 14 Taiwan Bank outlets, 2 of which operate 24 hours
• Can choose to pick up cash on the morning of departure, saving time

Reminder: Be sure to book in advance; last-minute requests may be rejected.

Third: Online exchange + foreign currency account storage (suitable for small investors)

If you don’t need cash immediately, you can first convert TWD to Yen and store it in a bank foreign currency account. This uses the “spot sell rate” (about 4.87), saving 1-1.5% compared to cash rate.

When you truly need cash, withdraw via counter or foreign currency ATM, but extra FX handling fees (about NT$100-200) will apply.

Hidden benefit: Yen stored in the account can earn deposit interest (annual rate about 1.5-1.8%), so 250,000 Yen stored for a year yields passive income of about 3,750-4,500 Yen.

Suitable for: Planning long-term stay in Japan, wanting to save and earn interest, patient with exchange rate fluctuations

Fourth: 24-hour foreign currency ATM withdrawal (emergency option)

Use a chip-enabled bank card at foreign currency ATMs to withdraw Yen cash 24/7. Cross-bank withdrawal fee is NT$5. Limited locations (~200 nationwide), and cash may run out during peak hours.

E.SUN Bank’s foreign currency ATMs allow NT$150,000 daily withdrawal limit from a TWD account, with very low fees, but only fixed denominations (1,000, 5,000, 10,000 Yen).

Who should use: Late-night travel plans, urgent need for cash, no time to visit bank

Practical comparison of the 4 methods (based on NT$50,000)

Conclusion: If you have more than 3 days to plan, online exchange + airport pickup is the most cost-effective. For last-minute needs, use foreign currency ATM. For long-term investment, store in the account to earn interest.

Before exchanging Yen: splitting the exchange is the winning strategy

Although Yen is a safe-haven currency, short-term fluctuations are quick. According to recent market analysis, Bank of Japan Governor Ueda Kazuo has signaled a hawkish stance, expecting a rate hike to 0.75% on December 19 (a 30-year high), which will support the Yen. Meanwhile, the USD is also at high levels, with USD/JPY oscillating between 154-156 in the short term.

Recommended approach:

• First, exchange 30% (for immediate use within the month)
• Observe for 2 weeks; if the rate drops below 4.80, exchange another 40%
• The remaining 30% can be exchanged one week before departure

This way, you can average the exchange rate within the fluctuation range of 4.80-4.90, saving NT$500-1,500 in “volatility costs.”

After exchanging Yen, don’t just sit back! 4 ways to preserve and grow your chips

Once you have Yen, don’t let it sit idle without income. Choose based on your purpose:

1. Yen fixed deposit (conservative): Earn 1.5-1.8% annual interest in bank deposits; NT$250,000 Yen yields about NT$3,750-4,500 annually

2. Yen ETFs (growth): Buy Yuanta 00675U tracking Yen index, with 0.4% annual management fee, suitable for regular investment

3. Forex trading (swing): Trade USD/JPY, EUR/JPY on forex platforms, 24/7 trading, high risk and high reward

4. Yen insurance policies (mid-term): Investment-linked policies with guaranteed 2-3% interest, lock-in for 3-5 years

Common questions about exchanging Yen answered quickly

Q: How much is the difference between cash rate and spot rate?
Cash rate (physical cash transactions) is usually 1-2% worse than spot rate (bank account transfers). Exchanging NT$50,000 can cost NT$500-1,000 more—don’t underestimate this small difference.

Q: How much Yen can I get for NT$10,000 now?
Based on December 2025 rate of 4.85, NT$10,000 ≈ 48,500 Yen (cash exchange might be slightly less, around 48,300).

Q: What do I need to bring for exchanges over NT$100,000?
ID card and passport are required. For large amounts (over NT$100,000), you may need to fill out a source of funds declaration. If using a company account, business registration proof is needed.

Q: What is the daily withdrawal limit for foreign currency ATMs?
Varies by bank; usually NT$120,000-150,000 equivalent per day for your own card. Cross-bank cards depend on issuing bank, but cross-bank fee is NT$5.

Summary: 2 core principles for smart Yen exchange

First, choosing the right channel is crucial—online exchange + airport pickup > online exchange + account storage > foreign currency ATM > counter cash. For NT$500,000, using the right method can save NT$3,000-5,000.

Second, split your exchange and plan ahead—don’t exchange everything at once or leave it idle. Observe exchange rate trends, enter multiple times to average costs, and after exchanging, move funds into fixed deposits or investment tools for continued growth.

This way, you not only save money on travel but also add a layer of asset protection in a depreciating TWD environment.