How to exchange TWD to JPY in the most cost-effective way? Cost breakdown of the four major channels in 2025

December 10, 2025, the Taiwan dollar against the Japanese yen reached a relatively high of 4.85. Many people are preparing for year-end travel or increasing their hedging assets, but the question is: whether exchanging 50,000 TWD to JPY at a bank counter, online currency exchange, or foreign currency ATM, the cost difference can be as high as NT$1,700—enough to buy several months of bubble tea. This article provides an in-depth breakdown of the hidden costs of each channel, helping you make informed currency exchange decisions without blind spots.

Why focus on the Japanese yen now? Threefold value explained

The yen in Taiwan has long surpassed the “travel pocket money” role.

Travel and consumption aspect, most Japanese merchants still mainly accept cash (credit card penetration is only 60%), whether shopping in Tokyo, skiing in Hokkaido, or vacationing in Okinawa, pre-prepared cash is necessary. Resellers and online shoppers in Japan are also long-term demanders.

From a financial market perspective, it’s even more critical—the yen ranks among the world’s three major safe-haven currencies (USD, CHF, JPY). Japan’s economy is stable, with low debt, attracting capital inflows during market turbulence. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, buffering a 10% stock market decline. For Taiwanese investors, exchanging for yen adds a hedge against Taiwan stock market volatility.

Additionally, the Bank of Japan maintains an ultra-low interest rate policy (recently raised to 0.75%), making the yen an ideal “funding currency”—many hedge funds borrow low-interest yen, switch to higher-yield USD, and profit from the US-Japan interest rate differential (about 4.0%). When risks rise, they unwind positions and buy back yen, creating an arbitrage cycle.

Complete cost comparison of four currency exchange channels in 2025

Many think exchanging yen is just a quick bank visit, but hidden costs like exchange rate spreads, service fees, and withdrawal charges are often overlooked. Here’s a breakdown of the actual costs for four mainstream channels:

First: Bank counter cash exchange—most traditional but highest cost

Carrying NT$ cash directly to a bank or airport counter to exchange for yen cash. Seems simple, but banks use “cash selling rate,” which is 1-2% worse than the interbank spot rate, plus some banks charge handling fees, increasing costs significantly.

For example, Taiwan Bank’s rate on December 10, 2025, is 0.2060 TWD/JPY (1 TWD = 4.85 JPY). Without fees, NT$50,000 can buy about 242,700 JPY. But banks like E.SUN, E.SUN Bank, and Cathay United Bank add NT$100-200 handling fee, and Cathay United Bank charges NT$200, further reducing the actual amount received.

Advantages: simple operation, safe, full denominations (1,000/5,000/10,000 JPY), suitable for those unfamiliar with online operations or urgent airport needs. Disadvantages: worse exchange rate, limited operating hours (weekday 09:00-15:30), not suitable for large or long-term exchanges.

Estimated loss of NT$1,500-2,000 for NT$50,000.

Second: Online exchange then in-person pickup—balanced option

Use bank app or online banking to convert TWD to JPY and deposit into a foreign currency account, using the “spot sell rate” (about 1% better than cash). If cash is needed, pick up in person or withdraw via foreign currency ATM, but this incurs “cash withdrawal fee” (around NT$100+).

For example, E.SUN Bank, after online exchange, withdrawing cash involves the difference between spot and cash rates plus handling fee. Compared to direct in-branch exchange, this saves about 0.5-1% in exchange spread.

This method is especially suitable for investors monitoring exchange rates and entering in batches at low points (e.g., when TWD/JPY drops below 4.80). 24/7 operation, multiple small entries, more precise average cost. Drawbacks: need to open a foreign currency account (most already have), and withdrawal fees apply.

Estimated loss of NT$500-1,000 for NT$50,000.

Third: Online currency exchange with airport pickup—best before departure

No need for a foreign currency account. Fill in currency, amount, designated pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notice to the branch for pickup. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay NT$10 via Taiwan Pay), with about 0.5% better rates.

Main advantage: can reserve pickup at Taoyuan Airport’s 14 Taiwan Bank locations (2 open 24 hours), ideal for planning sufficient cash before travel. The 2025 update improved online reservation convenience, helping many office workers avoid queues at banks on holidays.

Pros: better exchange rate, often no handling fee, direct airport pickup without extra travel. Cons: need to book 1-3 days in advance, pickup during bank hours, reservations cannot be changed once made.

Estimated loss of NT$300-800 for NT$50,000.

Fourth: Foreign currency ATM—most flexible but limited locations

Use chip-enabled bank card to withdraw yen cash from foreign currency ATMs, operating 24/7. Interbank withdrawal fee is NT$5 (much cheaper than NT$100-200 at counters), with daily withdrawal limit usually NT$150,000+.

Banks like E.SUN, Taishin have wider ATM networks (about 200 nationwide), with fixed denominations of 1,000/5,000/10,000 JPY. Note: by the end of 2025, Japan’s ATM withdrawal rules will change, requiring international cards (Mastercard/Cirrus) for overseas withdrawals.

Highest flexibility—no appointment needed, no time restrictions, suitable for sudden needs. Drawbacks: limited locations and denominations, cash often sold out during peak times (airports, year-end), so early preparation is recommended.

Estimated loss of NT$800-1,200 for NT$50,000.

Quick comparison table of four currency exchange methods

Is now a good time to exchange for yen?

As of December 2025, TWD/JPY is 4.85, up 8.7% from 4.46 earlier this year. The exchange gain is significant, especially amid ongoing TWD depreciation pressures.

However, JPY exchange rate remains volatile. The US entering a rate cut cycle supports the yen, but the Bank of Japan’s rate hike expectations (Governor Ueda’s hawkish comments pushing market expectations to 80%, planning to raise to 0.75% on December 19, a 30-year high) also push Japanese bond yields to 1.93%. USD/JPY has fallen from a high of 160 early in the year to 154.58, with short-term tests of 155 possible, but medium to long-term forecasts suggest further weakening below 150.

Conclusion: staggered entry recommended, avoid full commitment at once. Investors can choose:

• For travel needs: pre-book online exchange 1-2 weeks ahead to lock in rates
• For hedging: split into 3-4 batches via online exchange or ATM to reduce risk
• For short-term trading: consider forex trading rather than holding cash

After exchanging for yen—four options to make your money work

Many hold onto yen without interest, wasting potential. Here are four suitable options for small-scale beginners:

1. Yen fixed deposit—most stable

Open an account with E.SUN or Taiwan Bank, deposit online, starting from 10,000 yen, with annual interest of 1.5-1.8%. Risk-free, no volatility, suitable for short-term travel funds or conservative investors.

2. Yen insurance—medium-term yield

Buy yen savings insurance from Cathay Life, Fubon Life, etc., with guaranteed interest rates of 2-3%, typically 3-6 years. Suitable for medium-term funds. Be aware of exchange rate risk: if yen depreciates, converting back to TWD incurs losses. US dollar policies also face similar issues—when USD weakens, the return can be eroded by exchange rates. Investors should evaluate global interest rate trends before deciding.

3. Yen ETFs—growth allocation

For example, Yuanta 00675U tracks the yen index, purchasable as fractional shares via brokerage apps, with monthly investments of NT$100-500. Management fee 0.4%, lower risk than stocks but higher than deposits, suitable for long-term bullish yen outlook.

4. Forex swing trading—advanced

Trade USD/JPY or EUR/JPY directly on forex platforms, capturing exchange rate fluctuations. Advantages: long and short positions, 24-hour trading, small capital with leverage (10-50x). Risks are high, requiring professional knowledge.

Quick FAQ

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

Cash rate (Cash Rate) applies to physical bills or coins; banks bear the costs of handling cash, inventory risk, so the rate is worse (usually 1-2% behind the market). Advantage: immediate delivery, no waiting.

Spot rate (Spot Rate) is the market rate for settlement within two business days, used for electronic transfers and account transfers, close to international market prices, but settled T+2.

Q: How much yen can I get with NT$10,000?

Formula: Yen amount = TWD amount × current rate

At Taiwan Bank’s cash rate of 4.85 on December 10, 2025: NT$10,000 × 4.85 = about 48,500 JPY. Using the spot rate of 4.87, about 48,700 JPY, difference of roughly 200 JPY (about NT$40).

Q: What do I need to bring for in-branch exchange?

Taiwanese: ID card + passport. Foreigners: passport + residence permit. Company: business registration documents. If online reservation is made, bring transaction notice. Under 20: accompanied by parent and consent form. For amounts over NT$100,000, declare source of funds.

Q: Are there withdrawal limits at foreign currency ATMs?

Different banks have different limits. CTBC: NT$120,000/day. Taishin: NT$150,000/day. E.SUN: NT$50,000 per transaction, NT$150,000 per day. RMB ATMs often limit to NT$20,000 per transaction. Others may be NT$20,000-50,000 per transaction. From October 2025, many banks will lower daily limits to NT$100,000 due to anti-fraud measures. It’s recommended to diversify withdrawals or use your own bank card to avoid cross-bank fees.

Final advice on currency exchange

The yen has evolved from a simple travel currency to an asset with hedging and yield features. Whether for next year’s trip or asset allocation amid TWD depreciation risks, the key is the “batch exchange + value-added after exchange” principle.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “bank foreign currency ATM.” After familiarization, consider yen deposits, ETFs, or swing trading as needed. This way, you can enjoy more economical travel and better protection amid global asset fluctuations.