How to exchange Japanese Yen? The four major channels' costs are fully disclosed. Is it really worth entering now?

December 10, 2025, the TWD to JPY exchange rate surged to 4.85, leading to a rebound in travel interest to Japan and increased hedging demand. Many people want to take advantage of the TWD depreciation pressure to convert into yen, but are stuck on a key question: what’s the most cost-effective way to exchange?

In fact, the cost difference when exchanging yen can be as high as over 1,500 NT dollars (based on 50,000 NT dollars), and the key is not “where to exchange” but “how to exchange.” This time, we break down the real costs of four exchange channels, so you can see at a glance which is the most economical.

Cash Rate vs. Spot Rate: The Cost Difference Is Actually So Big?

Before choosing an exchange channel, understand these two exchange rate concepts:

Cash Rate is the physical transaction rate offered by banks for banknotes and coins. The advantage is getting cash on the spot; the disadvantage is a 1-2% difference from the international market price, often with additional handling fees. For example, Taiwan Bank’s rate on December 10 is about 0.2060 NT dollars per yen (i.e., 1 NT dollar = 4.85 yen).

Spot Rate is the standard foreign exchange market rate settled T+2, close to international market prices, saving a lot of costs. On the same day, E.Sun Bank’s spot sell rate is about 0.2062 NT dollars per yen (i.e., 1 NT dollar = 4.87 yen), and just this difference allows for an extra 200 yen.

The difference seems small, but exchanging 50,000 NT dollars via cash method results in a loss of 1,500-2,000 NT dollars, while the spot method only loses 500-1,000 NT dollars. That’s why savvy traders prefer to use online banking for currency exchange.

Practical Comparison of Taiwan’s 4 Major Yen Exchange Channels

Option 1: Over-the-counter cash exchange — Traditional but most expensive

Bring NT dollars directly to a bank or airport counter, exchange at the cash rate, and receive cash immediately. This is the most straightforward method.

Advantages are clear: safe, denominations available (1,000, 5,000, 10,000 yen options), assisted by staff.

Disadvantages are also solid: poor exchange rate, limited business hours (weekday 9:00-15:30), possible additional handling fees. For 50,000 NT dollars, the cost loss can be up to 1,500-2,000 NT dollars.

Suitable for: Elderly who don’t use online banking, or travelers with urgent needs at the airport.

Option 2: Online banking exchange + over-the-counter withdrawal — Moderate cost, suitable for foreign currency investors

Use bank app or website to convert NT dollars to yen at spot sell rate, then withdraw cash at counters or foreign currency ATMs when needed, but cross-bank handling fees apply (5-100 NT dollars).

The advantage is the ability to operate in batches—monitor exchange rates, buy in multiple installments at low points (e.g., when NT dollar/yen drops below 4.80), averaging the cost. E.Sun Bank’s app supports 24-hour online operations, suitable for those holding yen long-term or investing in yen deposits (current annual interest rate 1.5-1.8%).

For 50,000 NT dollars, the cost loss is about 500-1,000 NT dollars, saving more than half compared to over-the-counter.

Suitable for: Readers with forex investment experience, accustomed to online banking; or those who want flexible timing and phased entry.

Option 3: Online currency exchange + airport pickup — Most convenient, ideal for pre-arranged trips

No need to open a foreign currency account. Fill in the exchange amount, pickup branch, and date on the bank’s website, then complete the remittance. Bring ID and transaction notification to the designated branch for pickup. Taiwan Bank’s “Easy Purchase” and Mega International Bank offer this service, with options to pick up directly at Taoyuan Airport branches.

Taiwan Bank’s online exchange is fee-free (pay only 10 NT dollars via TaiwanPay), with about 0.5% better rates. The best part is that there are 14 Taiwan Bank outlets at the airport (2 open 24 hours). Book a day in advance, pick up directly at the airport, avoiding subsequent withdrawal hassle.

For 50,000 NT dollars, the cost loss is only 300-800 NT dollars, making it the top choice for travelers.

Suitable for: Well-planned travelers with full preparation; or those with confirmed departure dates who want to pick up yen directly at the airport.

Option 4: Foreign currency ATM withdrawal — Fastest, but limited locations and limits

Use a chip-enabled financial card at foreign currency ATMs to withdraw yen directly. Advantages include 24-hour access, only 5 NT dollars cross-bank fee from your NT account (cheaper with your own bank card), and no currency exchange fee.

Disadvantages are obvious: only about 200 ATMs nationwide, fixed denominations (1,000/5,000/10,000 yen), cash shortages during peak times (e.g., airports). Also, withdrawal limits vary by bank—SinoPac Bank’s daily limit is 150,000 NT dollars equivalent, CTBC Bank’s is 120,000, Taishin Bank’s is 150,000. Note that after the new regulations in October 2025, digital accounts’ daily limit drops to 100,000 NT dollars.

For 50,000 NT dollars, the cost loss is about 800-1,200 NT dollars, a middle-range level.

Suitable for: Office workers with no time to visit branches, or those needing urgent cash; or those with existing foreign currency accounts accustomed to ATM use.

Cost Comparison Table of 4 Methods — Clear at a Glance

(Source: Official bank websites and market rates, updated 2025/12/10)

Is It Really Cost-Effective to Exchange Yen Now? Timing Analysis

Exchange Rate Position: TWD/JPY at 4.85, up from 4.46 at the start of the year, a 8.7% appreciation. This gain is significant for Taiwanese investors. Especially under ongoing TWD depreciation pressure, the hedging value of yen has increased markedly.

Central Bank Movements: Bank of Japan Governor Ueda Kazuo has recently made hawkish comments, with market expectations of a rate hike to 0.75% on December 19 (a 30-year high). Japanese government bond yields have hit a 17-year high of 1.93%. This indicates rising yen interest rates, which could lead to short-term volatility of 2-5% due to unwinding arbitrage trades.

US Factors: The US has entered a rate-cut cycle, narrowing the interest rate differential, which supports the yen. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now, with a short-term test of 155 possible, but medium to long-term forecasts suggest a decline below 150.

Conclusion: Exchanging yen now is advantageous, but must be done in phases. Avoid converting all at once; instead, split into 3-5 entries at different times to balance exchange rate risks and seize lows. Especially recommend using online banking for flexible timing, combined with price tracking tools, to build positions below 4.80 in installments.

After Exchanging Yen — Don’t Let Your Money Sit Idle

Once you have yen, instead of leaving it idle, let it work for you:

Yen Fixed Deposits: The most stable. Open a foreign currency account at E.Sun or Taiwan Bank, starting from 10,000 yen, with annual interest rates of 1.5-1.8%. This yields about 125-150 yen per month risk-free.

Yen Insurance Policies: Medium-term holding. Cathay and Fubon Life offer USD/JPY savings insurance with guaranteed interest rates of 2-3%, typically for 3-5 years.

Yen ETFs: Growth-oriented. Yuanta 00675U tracks the yen index, can be bought as fractional shares via brokerage apps, suitable for regular investment. Management fee is only 0.4% annually.

Forex Swing Trading: USD/JPY or EUR/JPY, operated directly on forex platforms to capture rate fluctuations. Advantages include two-way trading, 24-hour market, low capital requirement, but requires risk tolerance.

Although yen is a strong hedge, it also faces two-way volatility. Beginners should start with deposits or ETFs, then try swing trading after gaining experience.

Common Q&A About Exchanging Yen

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

Using 4.85 rate: 10,000 × 4.85 = 48,500 yen.
Using bank cash rate 0.2060 NT dollars/yen: 10,000 ÷ 0.2060 ≈ 48,544 yen (a bit more).
The difference comes from bank rounding and pricing.

Q: What do I need to bring for over-the-counter exchange?

Taiwanese: ID card + passport.
Foreigners: Passport + residence permit.
If pre-booked online, also bring transaction notification.
Under 20, need parent’s consent + ID.
Large amounts (over 100,000 NT dollars) may require source of funds declaration.

Q: Are there limits for foreign currency ATM withdrawals?

Yes.
SinoPac: daily limit equivalent to 150,000 NT dollars.
E.Sun: 150,000 NT dollars.
CTBC: 120,000 NT dollars.
Taishin: 150,000 NT dollars.
Post-2025 new rules, digital accounts’ limit is 100,000 NT dollars/day.
It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Q: How long does online exchange take?

Taiwan Bank’s Easy Purchase online exchange requires at least 1-3 working days.
Airport branches can be booked for specific dates.
Don’t wait until the day before departure to book, to avoid insufficient quota or cash shortages.

Final Reminder

Yen is no longer just pocket money for travel; it also has hedging and investment value. By mastering the dual strategy of “phased exchange + immediate investment,” you can minimize costs and maximize returns.

Beginners are advised to start with the simplest options like “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM withdrawal,” then transfer yen into deposits, ETFs, or swing trading based on needs. This way, you not only save on travel expenses but also add a layer of protection during global market fluctuations. Don’t hesitate with “Will I regret exchanging now?” The key is to use the right methods, split entries, and let time balance your risks.