Japanese Yen Exchange Overview | 4 Methods Cost Comparison, Teaching You How to Exchange Most Economically

The TWD to JPY exchange rate has reached 4.85, a key level this year. From 4.46 at the beginning of the year to now 4.85, the yen has appreciated by 8.7%. Whether for travel abroad or asset allocation, the demand for exchanging yen is heating up. The question is: Is it now a good time to exchange? How to do it without losing money on exchange rate differences?

We have summarized the four most common ways to exchange JPY in Taiwan, breaking down the costs, processes, and suitable scenarios, so you can get it all done in one article.

3 Major Reasons to Pay Attention to the Yen

First, understand that exchanging yen is not just about traveling abroad.

Travel and daily consumption scenarios are diverse. Japanese merchants still rely heavily on cash payments, up to 40%. Shopping in Tokyo, skiing in Hokkaido, or vacationing in Okinawa, credit cards may not always be accepted. Plus, strong demand for Japanese purchasing agents and online shopping means many people want to pay directly in yen.

The yen is one of the world’s three major safe-haven currencies. Alongside the USD and Swiss Franc, Japan’s economy is stable with low debt. During market turbulence, funds tend to flow into yen as a safe haven. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while the stock market fell 10%, providing effective hedging. For Taiwanese investors, exchanging yen adds an extra layer of protection.

The Bank of Japan’s interest rate hike cycle has started. Governor Ueda’s hawkish comments have pushed expectations of rate hikes to 80%, with a projected increase to 0.75% at the December 19 meeting (a 30-year high). Japanese government bond yields hit a 17-year high of 1.93%. This makes yen investments more attractive.

Is it a good time to exchange yen now? Staggered operations are key

As of December 10, 2025, the TWD to JPY rate is about 4.85. Compared to 4.46 at the start of the year, the appreciation is significant, and Taiwan’s forex demand in the second half of the year has even grown by 25%.

But, don’t exchange all at once. Although long-term outlook for the yen is positive, short-term arbitrage closing risks exist, with volatility of 2-5%. USD/JPY has fallen from a high of 160 at the start of the year to 154.58. Short-term, it may rebound to 155, but medium to long-term forecasts suggest it will stay below 150.

The best strategy is to stagger your purchases—buy in installments when the TWD/JPY rate drops below 4.80, averaging your costs. This way, you can avoid the risk of exchange rate reversal and seize the yen’s appreciation opportunity.

All four methods to exchange JPY in Taiwan explained

Exchanging yen seems simple, but there’s a lot of know-how. Just the difference in exchange rates can cost you several cups of bubble tea. We’ve calculated real prices for you.

Method 1: Bank Counter Cash Exchange｜Most traditional but highest cost

Bring cash in TWD to a bank branch or airport counter to exchange for yen cash. It’s straightforward, but banks use the “cash selling rate” (1-2% worse than spot rate), plus possible service fees, making it the most expensive option.

For example, Taiwan Bank’s rate on December 10: cash selling rate is about 0.2060 TWD per yen (1 TWD = 4.85 yen), but other banks like E.SUN may offer 0.2069 TWD. This seemingly small difference can amount to over 500 TWD in a 50,000 TWD exchange.

Some banks also charge 100-200 TWD as counter service fee, so total costs could result in a loss of 1,500-2,000 TWD.

Advantages: Safe and reliable, staff assistance on-site, options for 1,000/5,000/10,000 yen denominations.
Disadvantages: Poorer exchange rates, limited to banking hours (9:00-15:30 on weekdays).
Suitable for: Travelers unfamiliar with online operations or urgent last-minute needs at the airport.

Data source: official bank websites, updated 2025/12/10

Method 2: Online Forex Conversion to Foreign Currency Account｜Suitable for staggered investment

Use online banking or app to convert TWD into yen and deposit into a foreign currency account, using the “spot sell rate” (about 1% better than cash selling rate). If you want to withdraw cash, go to counters or foreign currency ATMs, but fees apply (around 100 TWD+).

This method allows you to observe exchange rate trends and buy in parts at low points. For example, if last week the rate dropped to 4.80, you can buy in installments; if it rises to 4.85 this week, buy less. Over time, your average cost will be much lower than a one-time exchange.

E.SUN Bank offers this service, with a minimum of 10,000 yen in foreign currency accounts, which can be transferred into yen fixed deposits (annual interest rate about 1.5-1.8%), increasing passive income.

Advantages: 24/7 operation, averaging costs over time, better rates than counters.
Disadvantages: Need to open a foreign currency account first (simple process but takes 1-2 days), withdrawal fees apply.
Suitable for: Experienced forex investors planning to hold yen long-term.

Method 3: Online Currency Purchase for Airport Pickup｜Best before departure

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 at the counter. Taiwan Bank and Mega Bank offer this service.

Taiwan Bank’s “Easy Purchase” is the most cost-effective: online currency purchase with no fee (pay via Taiwan Pay, only 10 TWD), with about 0.5% better rates. At Taoyuan Airport, there are 14 Taiwan Bank counters (2 open 24 hours). Book 1-3 days before departure, pick up yen directly at the airport, saving time and effort.

For a 50,000 TWD exchange, this method only costs about 300-800 TWD more than the spot rate, nearly half the cost of counter cash exchange.

Advantages: Better rates, often no fees, airport pickup option, flexible timing.
Disadvantages: Need to book in advance (at least 1-3 days), pickup during bank hours only.
Suitable for: Travelers planning to go abroad and want to pick up yen at the airport.

Method 4: Foreign Currency ATM Withdrawal｜Most convenient for emergencies

Use a chip-enabled bank card at foreign currency ATMs in Japan to withdraw yen cash instantly, available 24 hours. Deducted from TWD account with only a 5 TWD interbank fee, much cheaper than counter services.

SinoPac Bank’s foreign currency ATMs allow withdrawal of yen from TWD accounts, with a daily limit of 150,000 TWD, no exchange fee. CTBC and others allow equivalent of 120,000 TWD, E.SUN about 50,000 TWD (but daily limit of 150,000 TWD including card transactions).

Note: Japan ATM withdrawal services will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus). TWD account withdrawals will incur additional fees.

Limited locations (~200 nationwide), fixed denominations (1,000/5,000/10,000 yen), and cash may run out during peak times. Not recommended for last-minute withdrawals.

Advantages: 24-hour instant withdrawal, high flexibility, lowest cross-bank fee (5 TWD).
Disadvantages: Few locations, fixed denominations, possible cash shortages at peak times.
Suitable for: Readers who lack time for counters or need urgent cash.

Data source: official bank websites, updated 2025/12/10

Summary table of 4 exchange methods: costs and scenarios

Estimated costs for exchanging 50,000 TWD:

Conclusion: If you have time to plan, online currency exchange is the most cost-effective. For urgent needs, foreign currency ATMs are most convenient. Only as a last resort, consider counter cash exchange.

How to manage your yen after exchange?

Don’t let your yen sit idle without interest. Depending on your risk appetite, there are four options:

1. Yen Fixed Deposit｜Stable returns, annual interest 1.5-1.8%
Open an account with E.SUN or Taiwan Bank, deposit yen online, minimum 10,000 yen. This is the most conservative approach, suitable for risk-averse investors.

2. Yen Insurance｜Medium-term holding, guaranteed interest 2-3%
Buy foreign currency savings insurance from Cathay or Fubon Life, locking in interest rates, capital guaranteed, with potential for growth. Suitable for 2-5 year holdings.

3. Yen ETFs｜Growth-oriented, e.g., Yuanta 00675U
Track yen index via ETFs, buy fractional shares through broker apps, suitable for regular investment. Management fee around 0.4%, higher risk but higher potential returns.

4. Forex Trading｜Swing trading USD/JPY or EUR/JPY
Trade yen currency pairs directly, 24/7, with long/short options, requiring some trading experience. Suitable for active traders with time to monitor markets.

Quick FAQs

Q: What’s the difference between cash exchange rate and spot rate?
Cash rate is the bank’s quote for physical cash, 1-2% worse than spot rate. Spot rate is for T+2 settlement, closer to international market price, usually more favorable. Basically, use cash rate for cash, and spot rate for transfers to accounts.

Q: How much yen can I get with 10,000 TWD?
Using Taiwan Bank’s cash selling rate of 4.85, about 48,500 yen. With spot rate 4.87, about 48,700 yen. The difference is roughly 200 yen (~40 TWD). Actual figures vary with real-time rates.

Q: What ID do I need for counter exchange?
ID card + passport are standard. If pre-booked online, bring transaction notice. For amounts over 100,000 TWD, may need to declare source of funds. Under 20, bring parental consent and signature.

Q: How much can I withdraw daily from foreign currency ATMs?
Limits vary by bank. CTBC: 120,000 TWD equivalent/day, Taishin: 150,000 TWD, E.SUN: 150,000 TWD including card transactions. After October 2025, some digital accounts may lower to 100,000 TWD. It’s best to split withdrawals or use your own bank card to avoid cross-bank fees.

Final reminder

The yen has evolved from just a “travel pocket money” to an asset with hedging and investment value. Follow the principles of “staggered exchange + don’t leave money idle” to minimize costs and maximize returns.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then gradually explore fixed deposits, ETFs, or forex swing trading. This way, you can enjoy more cost-effective travel and add a layer of protection during global market turbulence.