Yen investment and travel are booming! An in-depth analysis of the top 5 exchange channels' costs in Taiwan

On December 10, 2025, the TWD to JPY exchange rate has surged to 4.85, reigniting interest in travel to Japan and JPY asset allocation. Many assume that exchanging yen only requires a quick trip to the bank, but they may not realize that differences in exchange rates alone can cost you thousands of NT dollars. This article provides an in-depth analysis of the five most common JPY exchange channels in Taiwan, clarifying the true costs, suitable scenarios, and risks of each method.

Why is it worth exchanging for JPY? Dual value from daily life to investment

Daily needs: travel, purchasing, studying abroad are all essential

When it comes to foreign currency exchange, many Taiwanese first think of JPY, not only because of the popularity of travel to Japan. According to surveys, cash remains the main payment method in major cities like Tokyo and Osaka (credit card penetration is only 60%), whether shopping, dining, or accommodation, preparing yen cash is a must. Additionally, from Japan-based purchasing of cosmetics, clothing, to anime merchandise, many transactions are still settled in yen; young people planning to study or work in Japan need to plan their currency exchange in advance.

Financial aspect: investment potential of three major safe-haven currencies

The yen has long been ranked alongside the US dollar and Swiss franc as one of the world’s three major safe-haven currencies, due to Japan’s stable economy and relatively low government debt levels. During geopolitical tensions or market volatility, funds tend to flow into the yen for safety—during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a single week, effectively buffering stock market declines. For Taiwanese investors, holding yen is not only for leisure but also an effective hedge against Taiwan stock market risks.

Meanwhile, the Bank of Japan maintains an ultra-low interest rate policy (only 0.5%), making the yen a “funding currency.” Global arbitrage traders borrow low-interest yen to invest in higher-yield USD (US-Japan interest rate differential over 4%), and when risks rise, they unwind positions and buy back yen. This arbitrage mechanism creates a dual-directional volatility in the yen.

Cost comparison of JPY exchange: How to choose among 5 channels?

First: Bank counter cash exchange—safest but most expensive

Carrying NT$ cash to a bank branch or airport counter to exchange for yen cash is the most traditional and safest method. Banks use the “cash selling rate,” which is typically 1-2% worse than the international spot rate. Plus, some banks charge fixed handling fees (ranging from NT$100-200), making the overall cost higher.

For example, as of Taiwan Bank’s rate on December 10, 2025, the cash selling rate is approximately 0.2060 TWD/JPY (i.e., NT$1 can buy 4.85 yen). Exchanging NT$50,000 at this rate results in a hidden cost of NT$1,500-2,000, about 3-4% of the total amount.

Advantages: Safe, full denominations (1,000/5,000/10,000 yen options), in-person assistance
Disadvantages: Worst exchange rate, limited business hours (9:00-15:30 on weekdays), handling fees extra
Suitable for: Travelers unfamiliar with online methods or urgent cash needs at the airport

Major banks’ cash selling rates and fees as of December 2025:

• Taiwan Bank: 0.2060 (free)
• Mega Bank: 0.2062 (free)
• CTBC Bank: 0.2065 (free)
• E.SUN Bank: 0.2067 (NT$100)
• Fubon Bank: 0.2058 (NT$100)
• Cathay United Bank: 0.2063 (NT$200)

Second: Online currency exchange + airport pickup—best pre-departure reservation

No need to open a foreign currency account; simply fill in the amount, select pickup branch and date via bank’s website or app. After completing the online exchange, present ID and transaction notification at the designated branch to pick up cash. Taiwan Bank’s “Easy Purchase” online exchange feature is fee-free (pay NT$10 via TaiwanPay), with rates about 0.5% better than cash selling.

This service is ideal for planned travelers. Taoyuan Airport has 14 Taiwan Bank outlets, including 2 open 24 hours, allowing pre-booked airport pickup, saving last-minute trips before departure.

Advantages: Better rates (between cash and spot), often no handling fee, designated airport pickup, 24-hour reservation
Disadvantages: Need to book 1-3 days in advance, pickup times limited to bank hours, cannot change pickup branch
Suitable for: Travelers with planned trips who want to pick up cash at the airport

Estimated cost (NT$50,000): NT$300-800, half of the counter exchange cost

Third: Online exchange + foreign currency account—flexible option for investment and savings

Using bank app or online banking, convert NT$ to yen and deposit into a foreign currency account, using “spot sell rate” (about 4.87, better than cash rate). Suitable for investors monitoring exchange trends and making phased entries. If cash is needed, can withdraw at counters or via foreign currency ATMs, but cross-bank withdrawal fees apply (NT$5-100).

Advantages include 24/7 operation, averaging costs over time, better rates, and the ability to directly invest in fixed deposits (current annual interest rate about 1.5-1.8%), yen insurance policies, or ETFs.

Advantages: Instant operation, phased buying, favorable rates, can transfer into investment products
Disadvantages: Need to open a foreign currency account first, withdrawal fees, requires some forex knowledge
Suitable for: Experienced forex traders or those planning long-term holdings or investments in yen

Estimated cost (NT$50,000): NT$500-1,000

Fourth: Foreign currency ATM withdrawal—24/7 instant cash access

Using chip-enabled bank cards at foreign currency ATMs to withdraw yen cash, supporting 24/7 operation and cross-bank withdrawals (NT$5 fee from NT$ account). Fubon Bank’s foreign currency ATMs allow yen withdrawals without exchange fees, with a daily limit of NT$150,000 equivalent.

However, there are about 200 such ATMs nationwide, with limited denominations and cash supply. During peak times (especially at airports), cash may run out. It’s advisable to plan ahead and avoid last-minute withdrawals.

Advantages: 24/7 instant cash, flexible, low cross-bank fee, no reservation needed
Disadvantages: Limited ATM locations, fixed denominations (1,000/5,000/10,000 yen), may run out during busy hours
Suitable for: Busy professionals needing quick cash without visiting counters

Estimated cost (NT$50,000): NT$800-1,200

Fifth: Interbank settlement and international remittance—large-scale business exchange

For corporate import/export or large business needs, banks offer enterprise-level spot rates at the lowest cost, but with complex procedures, not suitable for retail.

Cost and scenario comparison table of 5 methods

Is it worthwhile to exchange yen now? Analysis of rates and central bank trends

2025 exchange rate review and forecast

As of December 10, 2025, TWD/JPY is about 4.85, up from 4.46 at the start of the year, appreciating roughly 8.7%. In the second half, Taiwan’s forex demand increased by 25%, driven mainly by travel recovery and safe-haven capital inflows.

From the central bank’s policy perspective, BOJ Governor Ueda Kazuo recently signaled a hawkish stance, with an 80% chance of a rate hike on December 19, raising the rate by 0.25 basis points to 0.75% (a 30-year high). The 10-year Japanese government bond yield hit a 17-year high of 1.93%. Meanwhile, USD/JPY has fallen from 160 at the start of the year to 154.58 now, with a short-term test of 155 possible, but medium to long-term forecasts suggest oscillation below 150.

Investment advice: stagger entries, avoid full conversion at once

Although the yen remains attractive as a safe-haven asset, short-term arbitrage unwind risks exist, with fluctuations possibly reaching 2-5%. For investment purposes, a phased approach is recommended to avoid chasing highs. Also, monitor global geopolitical risks (Taiwan Strait, Middle East) which could further influence the yen’s direction.

After exchanging for yen: 4 ways to increase value

Once you have successfully exchanged yen, don’t let the funds sit idle without earning interest. Based on your risk appetite, consider:

1. Yen fixed deposit—most stable growth method
Open a foreign currency account at E.SUN or Taiwan Bank, transfer yen online into a fixed deposit. Minimum NT$10,000 yen, annual interest 1.5-1.8%, suitable for conservative investors.

2. Yen insurance policy—mid-term protection option
Purchase yen savings insurance via Cathay or Fubon Life, with guaranteed interest rates of 2-3%, flexible payment periods, combining protection and returns.

3. Yen ETFs (00675U, 00703)—growth-oriented asset allocation
YuanDa 00675U tracks the yen index, can be bought in fractional shares via broker apps, with an annual management fee of 0.4%, suitable for dollar-cost averaging.

4. Forex trading—capture exchange rate fluctuations
Trade USD/JPY or EUR/JPY on platforms like Mitrade, featuring zero commissions, low spreads, and 24-hour long/short trading with stop-loss, take-profit, and trailing stop tools, suitable for experienced traders.

While yen is a strong safe-haven, it also has dual-directional volatility. For non-short-term travel, combining fixed deposits, ETFs, and other tools can diversify risk and stabilize growth.

Quick FAQs

Q: What’s the difference between cash rate and spot rate?
Cash rate (Cash Rate) is the bank’s buy/sell rate for physical bills and coins, convenient but about 1-2% higher cost. Spot rate (Spot Rate) is the electronic transfer rate for account transactions, closer to international market, lower cost, but settlement takes T+2.

Q: How much yen can I get with NT$10,000?
Using Taiwan Bank’s cash selling rate of 0.2060, NT$10,000 can buy about 48,543 yen. Using spot rate 4.87, about 48,700 yen, difference roughly 200 yen (NT$40).

Q: What ID do I need for counter exchange?
Taiwanese: ID card + passport; foreigners: passport + residence permit; companies: business registration. If pre-booked online, bring transaction notification. Under 20 need parent’s consent; over NT$100,000 must declare source of funds.

Q: Are there limits on foreign currency ATM withdrawals?
Post-2025 regulations, limits vary by card type:

• Domestic bank cards: NT$50,000-150,000 per transaction, NT$100,000-150,000 daily
• Other bank cards: 20,000 yen or equivalent 20,000 RMB per transaction, daily limits depend on issuing bank

Plan ahead and spread out withdrawals to avoid cash shortages during peak times.

Conclusion: Yen is now a multi-functional asset

Yen is no longer just travel “pocket money,” but a multi-role asset for hedging, investment growth, and daily expenses. Whether for next year’s trip, hedging against NT$ depreciation, or testing forex trading, the key principles are “phased exchange + don’t leave the position idle.”

Beginners are advised to start with “online exchange + airport pickup” or “foreign currency ATM,” get familiar with the process, then gradually move to fixed deposits, ETFs, or forex trading. This way, you can enjoy more cost-effective trips and add a layer of asset protection amid global market fluctuations.