Japanese Yen Exchange Guide: Comparing the Costs of 4 Major Methods, Which Saves the Most?

December 10, 2025, the TWD to JPY exchange rate reaches 4.85, meaning that 10,000 TWD can be exchanged for 48,500 JPY. Compared to the beginning of the year at 4.46, the yen has appreciated by approximately 8.7%. Whether planning to travel abroad or seeking foreign currency hedging allocations, now is a good time for many to consider exchanging for Japanese yen.

But the question is: what is the most cost-effective way to exchange for yen? Bank counters, online currency exchange, foreign currency ATMs… what are the differences between these methods? For exchanging 50,000 TWD, choosing different channels could cost you an extra 1,500 TWD or save you 1,000 TWD. This article will analyze each method to help you find the most suitable exchange approach.

Why is now a good time to consider exchanging for yen?

When it comes to foreign currency exchange, many people habitually think of the yen. But this is not only because traveling in Japan is inexpensive; there are deeper reasons worth understanding.

Travel shopping and daily use

Shopping in Tokyo, tasting Osaka, skiing in Hokkaido—most merchants still prefer cash (credit card penetration is only about 60%). Additionally, people engaging in purchasing代理代購, online shopping, or planning to work holiday in Japan need to prepare yen in advance. When traveling to Japan with a temporary Taiwan passport, it’s also wise to carry sufficient cash for emergencies.

Financial hedging perspective

The yen is one of the world’s three major safe-haven currencies alongside the US dollar and Swiss franc. During global market turbulence, funds tend to flow into yen for protection—during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% within a week, while stock markets fell by 10%. For Taiwanese investors, exchanging for yen is not just for travel; it’s also a tool to hedge against Taiwan stock market risks.

Furthermore, the Bank of Japan maintains ultra-low interest rates (currently 0.5%), attracting investors to borrow low-interest yen and shift into higher-yield USD investments (the USD/JPY interest rate differential is about 4.0%), creating arbitrage opportunities.

A table to understand 4 exchange methods

Just choosing different channels can lead to significant cost differences. Using a real exchange rate of 50,000 TWD as an example, here’s a clear comparison.

Method 1: Foreign currency ATM—most flexible emergency option

24/7 withdrawals using a chip-enabled financial card, directly debiting from your TWD account, with only a 5 TWD cross-bank fee—this is the advantage of foreign currency ATMs. Institutions like E.SUN Bank offer this service, with a daily withdrawal limit of about 150,000 TWD and no currency exchange fee.

Practical note: There are limited ATM locations (about 200 nationwide), with fixed denominations of 1,000, 5,000, and 10,000 yen. During peak times (airports, stations), cash often runs out, making it risky for last-minute needs. Planning ahead is better than waiting until just before departure.

• Advantages: Anytime, no prior reservation needed, minimal cross-bank fees
• Disadvantages: Limited locations, fixed denominations, possible stockouts during peak hours
• Suitable for: Busy professionals, those who don’t have time to visit banks

Method 2: Bank counter cash exchange—traditional but most expensive

Bring cash in TWD directly to a bank or airport counter to exchange for yen cash. This is straightforward but the “cash selling rate” used is 1-2% worse than the spot rate, making it the most costly method.

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

Bank exchange rates and fees comparison:

• Advantages: Safe, full denominations, assistance from staff
• Disadvantages: Worst exchange rate, limited operating hours (9:00-15:30 on weekdays), possible extra fees
• Suitable for: Urgent airport needs, those unfamiliar with online methods

Method 3: Online currency settlement + airport pickup—best pre-trip plan

No need to open a foreign currency account in advance. Simply fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notice to the designated branch for pickup. Taiwan Bank’s “Easy Purchase” online settlement is fee-free (using Taiwan Pay, only 10 TWD), with an exchange rate advantage of about 0.5%.

The biggest benefit is the ability to reserve pickup at Taoyuan Airport’s Taiwan Bank branches—there are 14 branches inside the airport, with 2 open 24 hours, so you can pick up cash directly before departure.

• Advantages: Better rates, often no fees, airport pickup option
• Disadvantages: Need to reserve 1-3 days in advance, pickup during bank hours
• Suitable for: Travelers planning trips, those wanting to save time

Method 4: Online exchange + counter pickup—preferred by forex investors

Use bank app or online banking to convert TWD into JPY and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling). When cash is needed, visit the bank counter or use a foreign currency ATM. This incurs a spread fee, roughly starting at 100 TWD.

The main advantage is the ability to observe exchange rate trends, entering in phases when the rate is low (e.g., TWD/JPY below 4.80), averaging costs. E.SUN Bank’s app offers spot rate exchange, and if you withdraw cash later, a fee applies based on the rate difference.

After exchanging for yen, you can also invest in yen deposits (annual interest 1.5-1.8%, starting from 10,000 yen) or buy yen insurance policies (guaranteed interest 2-3%), generating small returns.

• Advantages: 24/7 operation, phased entry for lower average cost, relatively favorable rates
• Disadvantages: Need to open a foreign currency account first, withdrawal incurs additional fees
• Suitable for: Experienced forex investors, those planning long-term yen holdings

Is it worthwhile to exchange yen now? Timing analysis

As of December 2025, the yen exchange rate remains volatile. It has appreciated from 4.46 at the start of the year to 4.85 now, an approximately 8.7% increase, which is quite profitable for Taiwanese investors. Especially under the backdrop of the TWD’s depreciation pressure, exchanging for yen has some hedging value.

Recent policy catalysts

Japan’s central bank governor Ueda Kazuo recently made hawkish comments, raising market expectations of interest rate hikes to 0.75% at the December 19 meeting (a 30-year high), with Japanese government bond yields reaching a 17-year high of 1.93%. USD/JPY has retreated from the high of 160 at the start of the year to around 154.58 now, with short-term fluctuations possibly returning to 155, but medium to long-term forecasts suggest below 150.

Exchange strategy advice

Yes, it’s a good time to exchange, but consider phased operations. Converting all at once risks buying at a high point; phased entries can effectively average costs. Also, watch for global arbitrage unwinding or geopolitical risks (Taiwan Strait, Middle East) that could cause short-term fluctuations of 2-5%.

Tips for temporary Taiwan passport holders

If you hold a temporary Taiwan passport to Japan, pay special attention when withdrawing yen at the airport:

• Show your temporary Taiwan passport + original passport at counters
• For large amounts (over 100,000 TWD), you may need to fill out a source of funds declaration
• If planning ATM withdrawals, confirm whether your issuing bank has limits for temporary passports
• Pre-arranged online settlement is less likely to be delayed due to document issues

Investment options after exchanging yen

After exchanging for yen, consider these ways to make your funds work:

Conservative: Yen deposits
Open a foreign currency account with E.SUN or Taiwan Bank, deposit online, with annual interest of 1.5-1.8%, starting from 10,000 yen—suitable for short-term parking.

Mid-term: Yen insurance
Cathay and Fubon offer yen savings insurance with guaranteed interest rates of 2-3%, combining protection and returns.

Growth: Yen ETFs
Yuanta 00675U, 00703, etc., track yen indices and can be bought as fractional shares via broker apps, suitable for regular investment. Management fee is about 0.4% annually, with diversified risk.

Swing trading: Forex trading
Trade USD/JPY, EUR/JPY, and other yen pairs on forex platforms, with long and short options, 24-hour trading, capturing rate fluctuations. Small capital can start, with advanced tools like stop-loss, take-profit, and trailing stops.

Quick FAQs

Q. What’s the difference between cash rate and spot rate?
Cash rate is the buy/sell rate banks offer for physical cash (notes and coins), settled immediately, convenient but usually 1-2% higher cost. Spot rate is the foreign exchange market rate for transactions settled within two business days, used for electronic transfers and non-cash settlements, more favorable and closer to international market prices.

Q. How much yen can 10,000 TWD buy?
Based on Taiwan Bank’s cash selling rate on December 10, 2025 (0.2060), 10,000 TWD can buy about 48,500 yen. Using the spot selling rate (~0.2052), it’s about 48,700 yen—roughly 200 yen difference (about 40 TWD).

Q. What documents are needed for counter exchange?
Taiwanese citizens: ID + passport; foreigners: passport + residence permit; temporary Taiwan passport holders: original documents. Minors under 20 need parental consent and ID. Large exchanges over 100,000 TWD may require source of funds declaration.

Q. What is the limit for foreign currency ATM withdrawals?
Limits vary by bank (some strengthened from October 2025). For example, China Trust’s daily limit is equivalent to 120,000 TWD; Taishin Bank’s is about 150,000 TWD; E.SUN Bank’s is also about 150,000 TWD (including debit card). It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Summary

Yen is no longer just for travel “pocket money”; it’s also an asset with hedging functions. Whether you plan to travel next year or want to allocate foreign currency assets amid TWD depreciation pressures, applying the principles of “phased exchange + immediate allocation” can lower costs and increase returns.

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