Should I exchange Japanese Yen? The meaning of Taiwanese dollar appreciation and the 2025 currency exchange strategy guide

Is now a good time to exchange for Japanese Yen?

December 10, 2025, the TWD/JPY quote is 4.85. Compared to the beginning of the year at 4.46, the yen has appreciated by about 8.7%. But behind this number lies an important financial concept: TWD appreciation means the TWD has strengthened relative to other currencies. Conversely, the yen has weakened against the TWD.

For those wanting to exchange for yen, this presents both an opportunity and a challenge. The good news is that the yen, as one of the world’s three major safe-haven currencies (USD, CHF, JPY), remains resilient during global turmoil—during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, helping investors hedge against a 10% stock market decline. The bad news is that TWD appreciation also means the cost of buying yen with TWD decreases, but in the long term, the Bank of Japan is on the verge of raising interest rates (Governor Ueda Kazuo is expected to raise rates by 0.25 basis points to 0.75% on December 19), Japanese bond yields have hit a 17-year high of 1.93%, USD/JPY may short-term return to 155, but medium to long-term forecasts are below 150.

Conclusion: Now is a good time to exchange, but it’s best to do so in batches to avoid putting all your eggs in one basket.

Why exchange for yen? Three practical values

Daily life: travel, shopping, studying abroad

When traveling to Japan, cash is still king—stores in Tokyo, Osaka, Hokkaido have cash acceptance rates over 80%, and credit cards are not as widely accepted as expected. Additionally, Japanese drugstores, fashion, and anime merchandise often require direct yen payments. For long-term plans (studying, working holidays), people also exchange in advance to lock in rates and avoid last-minute fluctuations increasing costs.

Investment: hedging assets and arbitrage tools

The yen has long been a safe-haven currency, with stable economy and low debt. When market risks rise, capital flows into the yen—that’s why during geopolitical conflicts or stock crashes, the yen tends to appreciate inversely.

Another investment aspect is arbitrage trading. Japan maintains an ultra-low interest rate policy (currently around 0.5%), making the yen a “funding currency”—investors borrow yen at low interest, convert to higher-yield USD (USD/JPY interest rate differential reaches 4.0%). When risks increase, they close positions by buying back yen, profiting from the interest rate spread.

Full analysis of Taiwan’s five major yen exchange channels

Many think there’s only one way to exchange yen, but different channels can have rate differences that cost you thousands more. Here, we list the latest five methods with actual quotes.

① Bank counter cash exchange—most traditional but most expensive

Bring TWD cash directly to a bank branch or airport counter to exchange for yen cash. Simple operation, but using “cash selling rate” (about 1-2% worse than spot rate), the highest cost.

For example, Taiwan Bank’s quote on December 10, 2025, is a cash selling rate of 0.2060 TWD/JPY (1 TWD = 4.85 JPY). Some banks also charge a fixed fee of 100-200 TWD.

Advantages: Safe, denominations available (1,000, 5,000, 10,000 JPY), staff assistance
Disadvantages: Rate difference, limited business hours, extra fees
Suitable for: Small amounts, urgent airport needs, unfamiliar with online operations
Estimated cost (TWD 50,000): loss of 1,500-2,000 TWD

Comparison of banks (source: official bank websites, updated 2025/12/10):

② Online exchange + cash withdrawal—balanced approach

Use online banking app to convert TWD to JPY and deposit into a foreign currency account, using “spot sell rate” (about 1% better than cash selling rate). If cash is needed, withdraw at counters or foreign currency ATMs, incurring additional exchange fees (starting at 100 TWD).

This method suits those monitoring exchange rates, entering in batches when TWD/JPY drops below 4.80.

Advantages: 24/7 operation, ability to buy in batches for average cost, better rates
Disadvantages: Need foreign currency account, withdrawal fees apply
Suitable for: Experienced forex users, those with foreign currency accounts, wanting to invest in yen deposits
Estimated cost (TWD 50,000): loss of 500-1,000 TWD

③ Online currency exchange + 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 completion, bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” online exchange is fee-free (TWD 10 if paid via TaiwanPay), with about 0.5% rate advantage. Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours), making it an ideal pre-departure choice.

Advantages: Better rates, often fee-free, airport pickup option, convenient for travel
Disadvantages: Need to book 1-3 days in advance, pickup time limited to business hours, branch cannot modify
Suitable for: Planned travelers, those wanting to pick up cash at the airport
Estimated cost (TWD 50,000): loss of 300-800 TWD

④ Foreign currency ATM—24/7 flexible withdrawal

Use chip-enabled bank cards at foreign currency ATMs to withdraw yen cash, available 24/7. Cross-bank withdrawals cost only 5 TWD per transaction. E.SUN Bank’s foreign currency ATMs allow withdrawal from TWD accounts, with a daily limit of TWD 150,000 and no exchange fee.

Advantages: Instant withdrawal, 24/7 access, high flexibility, low cross-bank fee
Disadvantages: Limited locations (~200), fixed denominations (1,000/5,000/10,000 JPY), cash may run out during peak times
Suitable for: Those with no time for counters, needing urgent cash
Estimated cost (TWD 50,000): loss of 800-1,200 TWD

Foreign currency ATM limits (source: official bank websites, updated 2025/12/10):

⑤ Online forex trading platforms—advanced investment

Trade yen currency pairs directly on forex platforms (e.g., Mitrade), such as USD/JPY or EUR/JPY. Mitrade offers zero commission, low spreads, and various tools (stop-loss, take-profit, real-time signals), suitable for swing or intraday strategies.

Advantages: Long and short positions, 24-hour trading, small capital required, rich tools
Disadvantages: Requires forex knowledge, higher risk, not physical cash
Suitable for: Experienced traders wanting to capitalize on rate fluctuations

Quick comparison table of four exchange methods

How much yen for 10,000 TWD? Actual calculation

Formula: JPY amount = TWD amount × current rate

Using Taiwan Bank’s quote on December 10, 2025:

• Cash selling rate (0.2060): 10,000 TWD × 4.85 = approximately 48,500 JPY
• Spot sell rate (approx. 0.2055): 10,000 TWD × 4.87 = approximately 48,700 JPY
• Difference: about 200 JPY (roughly TWD 40)

Small differences matter over large amounts—5 million TWD would yield 10,000 JPY more, highlighting the importance of choosing the right channel.

After exchanging yen—let your money keep working

Don’t let the yen sit idle without interest. Consider moving into stable investments or growth assets.

1. Yen deposits—conservative (annual interest 1.5-1.8%)

Open foreign currency accounts at E.SUN or Taiwan Bank, deposit online starting from 10,000 yen.

2. Yen insurance policies—medium-term holding (guaranteed 2-3%)

Buy savings insurance from Cathay or Fubon Life, suitable for 2-3 years.

3. Yen ETFs—growth-oriented (annual management fee 0.4%)

Yuanta 00675U tracks yen index, can buy fractional shares via broker apps, suitable for dollar-cost averaging.

4. Yen forex trading—swing opportunities (USD/JPY, EUR/JPY)

Platforms like Mitrade offer zero-commission trading, suitable for short-term swings.

Though yen is a safe-haven, it also fluctuates bidirectionally. Rate hikes by the Bank of Japan favor yen appreciation, but global arbitrage unwinding or geopolitical conflicts can suppress it. For investments, yen ETFs diversify risk; for trading, USD/JPY remains a classic choice.

Quick FAQs

Q. What’s the difference between cash rate and spot rate?
Cash rate applies to physical cash transactions (bills/coins), with the advantage of immediate delivery but worse rates (1-2% off the market). Spot rate applies to non-cash transactions (bank transfers, foreign currency accounts), offering better rates but T+2 settlement.

Q. What do I need to bring when exchanging currency?
Counter exchange requires ID + passport. Online booking also needs transaction notice. Under 20 years old, must be accompanied by a parent. Amounts over TWD 100,000 may require source of funds declaration.

Q. What does TWD appreciation mean? How does it affect exchange?
TWD appreciation means the TWD has strengthened against other currencies, increasing purchasing power. For yen buyers, it means the same TWD buys fewer yen. For example, from 4.46 to 4.85, an 8.7% appreciation, indicating the market views TWD as more valuable, reducing yen demand.

Q. What are foreign currency ATM withdrawal limits?
Varies by bank. CTBC, Taishin, E.SUN cards typically have daily limits around TWD 120,000-150,000, with single transaction limits of TWD 20,000. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees (5 TWD per transaction).

The golden rules for exchanging yen

Yen is no longer just for travel “pocket money”—it’s an asset with hedging and investment value. Follow these two principles to reduce costs and maximize gains:

First principle: Batch exchange — Avoid exchanging all at once; observe the TWD/JPY fluctuation range (currently 4.80-4.90), and buy in batches at lows.

Second principle: Don’t just leave it — After exchanging, move the yen into deposits, ETFs, or swing trading to keep your capital growing.

Beginners can start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then upgrade to yen deposits, ETFs, or forex trading based on needs. This way, you not only enjoy cost-effective travel but also add a layer of protection during global market turbulence.