TWD to JPY vs HKD — Which is more worth it in 2025? A practical guide to 4 exchange methods

Preface: Current Exchange Rate Trends for JPY and HKD

As of December 10, 2025, the TWD to JPY exchange rate has reached 4.85, appreciating by 8.7% from the beginning of the year at 4.46. Meanwhile, more and more Taiwanese are not only considering currency exchange for travel but also treating the Japanese yen as an asset to hedge against Taiwan stock market fluctuations. But whether it’s worthwhile depends on how you exchange—using the wrong method can eat up several cups of bubble tea just in the spread.

In comparison, although HKD is also a commonly used foreign currency, the channels for exchange and the volatility of the rate are significantly inferior to JPY, and its investment value is also lower. Today, we focus on analyzing JPY and briefly compare why JPY is more worth paying attention to.

Why is now a good time to exchange for JPY? (Not HKD)

Daily Life Aspects

In Japanese travel and consumption scenarios, cash payments still account for the majority (credit card penetration is only 60%), and cities like Tokyo, Osaka, and Hokkaido all require yen. Shopping agents and Japanese online auction enthusiasts also often need to pay directly in yen. In contrast, HKD is mainly used for consumption in Hong Kong, where electronic payment is more widespread, and cash demand is relatively lower.

Financial Investment Perspective

The yen is one of the three major safe-haven currencies globally (alongside USD and Swiss Franc), serving as a hedge during market turbulence. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a single week, successfully buffering a 10% decline in the stock market. For Taiwanese investors, holding some yen can hedge against Taiwan stock risks.

Additionally, the Bank of Japan Governor Ueda Kazuo recently made hawkish comments, pushing market expectations of interest rate hikes to 80%. It is expected that the December 19 meeting will raise rates by 0.25 bps to 0.75% (a 30-year high), with Japanese bond yields reaching a 17-year high of 1.93%. This indicates strong medium- to long-term appreciation potential for the yen, whereas HKD lacks such drivers.

Is it worthwhile to exchange for JPY now? Timing analysis

Simple answer: Yes, but operate in batches.

TWD to JPY has risen from 4.46 at the start of the year to 4.85 now, a total appreciation of 8.7%. For investors already holding JPY positions, this has brought considerable exchange gains. Data shows that in the second half of the year, Taiwan’s currency exchange demand increased by 25%, mainly driven by travel recovery and hedging needs.

Short-term volatility considerations: USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now. In the short term, it may return to 155, but in the medium to long term, it is forecasted to stay below 150—this is bullish for TWD. While JPY appreciates, TWD also faces depreciation pressure. Under this dual effect, the gains from exchanging for JPY do exist.

Investment risk warning: Arbitrage closing risks remain, with short-term fluctuations of 2-5%. It is recommended to buy in batches rather than all at once.

Four Methods to Exchange for JPY in Taiwan — Cost Comparison

Method 1: Bank counter or airport cash exchange

The most traditional way—bring TWD cash to a bank or airport to exchange for yen cash. Simple operation but the highest cost, as banks use the “cash selling rate” (about 1-2% worse than the spot rate).

As of December 10, 2025, cash selling rates at various banks:

• Taiwan Bank: 0.2060 TWD/JPY (no fee)
• Mega Bank: 0.2062 TWD/JPY (no fee)
• CTBC Bank: 0.2065 TWD/JPY (no fee)
• E.SUN Bank: 0.2067 TWD/JPY (per transaction NT$100)
• Fubon Bank: 0.2069 TWD/JPY (per transaction NT$100)
• Cathay United Bank: 0.2063 TWD/JPY (per transaction NT$200)

Estimating with NT$50,000 exchanged, this method incurs a loss of NT$1,500–2,000. Best suited for those unfamiliar with online operations or urgent airport needs.

Method 2: Online banking app exchange, then withdraw cash at counter or ATM

Use bank app or online banking to convert TWD to JPY at the “spot selling rate,” which is about 1% better than cash selling. When cash is needed, go to the counter or use foreign currency ATMs to withdraw, but this incurs a spread fee (starting around NT$100).

Advantages: 24-hour operation, batch entry for average cost, better interest rates (current JPY fixed deposit annual rate about 1.5-1.8%).
Disadvantages: Need to open a foreign currency account first, withdrawal fees apply.
Cost estimate (NT$50,000): Loss NT$500–1,000.
Best for: Those experienced in forex investment, planning to hold JPY fixed deposits or investments long-term.

Method 3: Online currency purchase reservation, pick up at airport or designated branch

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After transfer, bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” online currency purchase is fee-free (pay NT$10 via TaiwanPay), with about 0.5% better rates.

Taoyuan Airport has 14 Taiwan Bank outlets (including 2 24-hour branches), making it the most convenient choice before departure.

Advantages: Better rates, often no fees, can specify airport pickup.
Disadvantages: Need to book in advance (1-3 days), pickup limited to business hours.
Cost estimate (NT$50,000): Loss NT$300–800.
Best for: Planned travelers who want to withdraw at the airport before departure.

Method 4: Foreign currency ATM withdrawal of yen cash

Use chip-enabled financial cards at foreign currency ATMs to withdraw yen, supporting 24-hour operation. Deduct NT$5 cross-bank fee from TWD account (free with same bank card), no exchange fee. Limited locations (~200 nationwide), denominations fixed at 1,000, 5,000, 10,000 yen.

For example, E.SUN Bank: Foreign currency ATM withdrawals from TWD accounts, with a daily limit of NT$150,000.

Note: During peak times (like airports), cash may run out, so avoid last-minute withdrawals. After the 2025 new regulations, many banks have adjusted daily limits to NT$100,000–150,000; it’s recommended to split withdrawals.

Advantages: Instant withdrawal, high flexibility, low cross-bank fees.
Disadvantages: Limited locations and denominations, possible cash shortages during peak hours.
Cost estimate (NT$50,000): Loss NT$800–1,200.
Best for: Those with no time to visit banks or needing emergency cash.

Complete Comparison Table of 4 Currency Exchange Methods

After Exchanging for Yen: Don’t Let Your Money Lie Idle

If you’ve already exchanged for yen, don’t let it sit interest-free in your account. Here are four options suitable for small-scale beginners:

1. Yen Fixed Deposit (Stable) Minimum NT$10,000, annual interest rate 1.5-1.8%. E.SUN, Taiwan Bank offer online account opening.

2. Yen Savings Insurance (Mid-term Holding) Cathay, Fubon Life offer yen policies with guaranteed interest rates of 2-3%, suitable for 1-3 year allocations.

3. Yen ETFs (Growth) Yuanta 00675U, 00703 tracking yen indices, can be bought as fractional shares via broker apps with an annual management fee of 0.4%.

4. Forex Swing Trading Trade USD/JPY, EUR/JPY on forex platforms to capture rate fluctuations. Advantages include two-way trading, 24-hour market, and small capital requirements.

Common FAQs about Exchanging for JPY

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

Cash Rate:
The rate banks offer for physical cash buy/sell transactions, settled immediately. It’s convenient but usually 1-2% worse than the spot rate, with higher fees.

Spot Rate:
The rate for transactions settled within two business days in the forex market, mainly used for electronic transfers without cash. It’s more favorable (close to international market prices), but settlement takes T+2.

Q. How many yen can I get for NT$10,000?

Calculation: JPY amount = TWD amount × current rate

For example, Taiwan Bank’s December 10, 2025, cash selling rate is about 4.85, so NT$10,000 can get approximately 48,500 yen. Using the spot selling rate (about 4.87), it’s about 48,700 yen, a difference of roughly 200 yen (equivalent to NT$40).

Q. What do I need to bring for counter currency exchange?

Taiwanese need to bring ID card + passport; foreigners need passport + residence permit; companies need business registration proof.

If pre-booked online (online currency purchase), also bring transaction notice. Under 20 years old, need parental consent. Large exchanges (over NT$100,000) may require source of funds declaration.

Q. What is the limit for foreign currency ATM withdrawals?

Post-2025 new regulations, bank limits are adjusted as follows:

It’s recommended to split withdrawals or use same bank cards to avoid cross-bank fees.

Final Advice

The yen is no longer just pocket money for travel but also an asset with hedging and investment value. If you’re considering exchanging for yen, follow the two main principles of “batch exchange + don’t leave it idle after exchange” to minimize costs and maximize gains.

The simplest starting point for beginners is “Taiwan Bank online currency purchase + airport pickup” or “foreign currency ATM,” then transfer yen into fixed deposits, ETFs, or even try forex swing trading. This way, you not only enjoy more cost-effective travel but also add a layer of protection during global market turbulence.