USD to JPY and TWD exchange guide: The 4 most cost-effective strategies for 2025

Is now a good time to exchange for Japanese Yen?

As of December 10, 2025, the exchange rate data shows that the Taiwan dollar (TWD) against the Japanese Yen (JPY) is approximately 4.85, an 8.7% appreciation from the start of the year at 4.46. Meanwhile, the USD/JPY has also reached a critical point — falling from a high of 160 at the beginning of the year to around 154.58. For investors, this dual currency movement presents opportunities: on one hand, the TWD faces significant depreciation pressure, while on the other, the Yen, as one of the three major safe-haven currencies, is gaining attention.

Based on the latest market observations, Taiwan’s foreign exchange demand in the second half of the year has increased by 25%, mainly driven by tourism recovery and risk hedging. Bank of Japan Governor Ueda Kazuo has issued hawkish comments, with market expectations of a rate hike to 0.75% on December 19 (a 30-year high), and Japanese government bond yields reaching a 17-year high of 1.93%. In this context, the arbitrage space for USD/JPY exchange is narrowing, but the long-term hedging value of holding Yen is increasing.

Why consider investing in Yen?

The Yen has long been regarded as one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), supported by Japan’s stable economy and manageable debt levels. During market turbulence, capital often flows into Yen — for example, during the Russia-Ukraine conflict in 2022, the Yen appreciated by 8% in one week, effectively buffering a 10% decline in the stock market. For Taiwanese investors, exchanging USD to JPY or directly converting TWD to JPY can be effective tools to hedge against Taiwan stock market volatility.

Additionally, Japan maintains an ultra-low interest rate policy (currently 0.5%), making Yen a “financing currency” for arbitrage trading. Many institutional investors borrow Yen at low interest, convert to higher-yield USD, and enjoy a 4.0% interest rate differential. However, such arbitrage positions are quickly unwound when risks increase, potentially causing short-term Yen fluctuations of 2-5%.

Complete comparison of 4 Yen exchange methods

Option 1: Bank counter exchange (traditional but costly)

Carry cash TWD to a bank branch or airport counter to exchange for Yen notes. Using the “cash selling rate” (about 1-2% worse than the spot rate), overall costs are higher.

As of December 10, 2025, bank cash selling rates comparison:

Advantages: Safe, full denominations (1,000, 5,000, 10,000 Yen), staff assistance on site
Disadvantages: Worse exchange rate, limited business hours, additional fees increase costs
Estimated cost (TWD 50,000): Loss of about TWD 1,500–2,000
Suitable for: Inexperienced with online operations, urgent airport needs

Option 2: Online exchange transfer + foreign currency ATM withdrawal (most flexible)

Use online banking to convert TWD into Yen and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling rate). If cash is needed, withdraw from foreign currency ATMs with chip-enabled debit cards, operating 24/7. E.SUN Bank’s foreign currency ATMs allow withdrawal of Yen from TWD accounts, with a daily limit of TWD 150,000, no exchange fee, and only TWD 5 cross-bank fee.

Advantages: 24-hour operation, dollar-cost averaging, better exchange rates, instant withdrawal
Disadvantages: Need to open a foreign currency account first, limited locations and denominations (~200 nationwide)
Estimated cost (TWD 50,000): Loss of about TWD 500–1,000
Suitable for: Experienced in forex, no time for counter visits, need flexible withdrawals

Option 3: Online currency exchange + airport pickup (best for planned trips)

No need for a foreign currency account. Fill out exchange info on the bank’s website, then bring ID and transaction notice to pick up at the counter. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (TWD 10 if paid via TaiwanPay), with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours).

Advantages: Better rates, often no fees, airport pickup option
Disadvantages: Need to book in advance (1-3 days), pickup during bank hours only
Estimated cost (TWD 50,000): Loss of TWD 300–800
Suitable for: Well-planned trips, pre-trip arrangements, direct airport cash pickup

Option 4: USD to Yen (mid-term investment consideration)

If you already hold USD, you can directly exchange USD for Yen. At the current USD/JPY around 154.58, the rate is relatively stable. Use bank foreign currency accounts or forex platforms (like Mitrade) for real-time conversions.

Key considerations:

• The USD/JPY interest differential is about 4.0%, but arbitrage closing risks exist
• BOJ rate hike expectations support Yen, but global stock volatility may counteract
• Suitable for holding 3-6 months

Advantages: Reduce TWD volatility impact, clear arbitrage opportunities
Disadvantages: Double exchange rate risk, basic forex knowledge needed
Estimated cost (equivalent TWD 50,000): depends on rate fluctuations, TWD 0–500

Cost comparison of 4 methods (based on December 2025 data)

Quick FAQs

Q: How much is the cash exchange rate different from the spot rate?
Cash rate for physical notes is usually 1-2% worse than the spot rate. Spot rates are used for electronic transfers, which settle in T+2 but offer better rates.

Q: How much Yen can I get with TWD 10,000?
Using Taiwan Bank’s cash selling rate of 4.85, TWD 10,000 ≈ 48,500 Yen. Using the spot rate (~4.87), about 48,700 Yen — a difference of roughly 200 Yen.

Q: What do I need to bring for counter exchange?
Taiwanese: ID + passport; foreigners: passport + residence permit. For online reservations, also bring transaction notice. Under 20 requires a parent. For amounts over TWD 100,000, may need to declare source of funds.

Q: What is the daily withdrawal limit at foreign currency ATMs?
Post-October 2025, banks have different limits. CTBC: TWD 120,000/day; Taishin: TWD 150,000/day; E.SUN: TWD 150,000/day (including debit card). It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Next steps after exchanging Yen: 4 ways to grow your chips

If you’ve successfully exchanged for Yen, don’t let your funds sit idle. Consider these options:

Yen fixed deposit: Stable, E.SUN/Taiwan Bank foreign currency accounts, starting from 10,000 Yen, annual interest 1.5–1.8%
Yen insurance policies: Medium-term, Cathay/Fubon savings insurance, guaranteed interest 2–3%
Yen ETFs (00675U, 00703): Growth-oriented, Yuanta 00675U tracks Yen index, buy fractional shares via broker apps
Forex trading USD/JPY, EUR/JPY: Swing trading, zero commission, low spreads, 24/7 trading, long/short strategies

Summary recommendations

Yen is no longer just for travel “pocket money,” but also a hedging and investment asset. With the TWD under depreciation pressure and USD arbitrage less attractive, direct TWD to Yen exchanges or USD to Yen conversions can diversify your assets.

Core principles: Use staggered exchange (avoid all at once), don’t just convert and leave idle (move into fixed deposits/ETFs/forex). Beginners can start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then upgrade as needed. This way, you can enjoy more cost-effective travel and add a layer of protection during global market turbulence.