Japanese Yen Exchange Guide: Comparing Costs of 4 Channels and the Best Timing

Is Now a Good Time to Exchange for Yen? Check This Number First

As of December 10, 2025, the TWD/JPY exchange rate reached 4.85, up approximately 8.7% from 4.46 at the beginning of the year. In other words, if you exchanged yen at the start of the year, you’ve already gained a significant profit just from the exchange rate difference. But here’s the question—is it really worth it now?

The answer: It’s best to do it in installments. The yen market is highly volatile, with the US rate cut cycle underway and the Bank of Japan on the verge of raising interest rates (expected to rise to 0.75% in December). USD/JPY has fallen from 160 at the start of the year to 154.58, possibly rebounding to 155 in the short term, with medium to long-term forecasts below 150. For investors, staggered entry can help hedge exchange rate risks.

Why do Taiwanese people want to exchange for yen? It’s not just for travel

Travel, living, long-term residence

Tokyo, Osaka, Hokkaido—Japan’s cash culture is deeply rooted—credit card penetration is only 60%, and most stores only accept cash. Plus, demand from purchasing agents, Japanese online shopping, studying, working holidays, and long-term stays continues to rise.

From a financial perspective: the top safe-haven asset

The yen is one of the three major safe-haven currencies alongside USD and Swiss Franc. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a single week, while the stock market dropped 10%—this demonstrates its safe-haven power. For Taiwanese investors, holding yen is like insuring Taiwanese stocks.

Additionally, Japan’s ultra-low interest rate policy (0.5%) makes the yen a funding currency for arbitrage trading. Many large investors borrow low-interest yen to buy higher-yield USD (the USD/JPY interest rate differential reaches 4.0%), and when risks increase, they close positions for profit, further boosting yen trading demand.

How do Taiwanese people exchange for yen? Four practical methods tested

Method 1: Bank Counter Exchange — The most traditional but most costly

Bring cash to a bank counter or airport to exchange, using the “cash selling rate,” which is usually 1-2% worse than the spot rate. Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 TWD/JPY (1 TWD = 4.85 JPY), with some banks adding handling fees.

Cost estimate: For 50,000 TWD, loss of about 1,500-2,000 TWD.

• ✓ Safe, reliable, full denominations, staff assistance
• ✗ Exchange rate difference, limited operating hours, possible handling fees
• Suitable for: Urgent airport needs, customers unfamiliar with online methods

Latest bank rates comparison (2025/12/10):

• Taiwan Bank: 0.2060, no fee
• Mega International Bank: 0.2062, no fee
• E.SUN Bank: 0.2067, per transaction 100 TWD
• Taipei Fubon Bank: 0.2069, per transaction 100 TWD

Method 2: Online FX Conversion + In-branch Cash Pickup — Best rates but with pickup fee

Use bank app to convert TWD to JPY into a foreign currency account, using “spot selling rate” (about 1% better than cash rate). When needed, go to the branch to withdraw cash, incurring a currency exchange handling fee (minimum 100 TWD).

E.SUN Bank and Taiwan Bank offer this service. You can observe favorable rates (below 4.80) for multiple entries, or transfer into yen fixed deposits (annual interest 1.5-1.8%).

Cost estimate: For 50,000 TWD, loss of 500-1,000 TWD.

• ✓ 24/7 operation, averaging costs over time, better rates
• ✗ Need foreign currency account, withdrawal fee applies
• Suitable for: Experienced forex investors, long-term holders

Method 3: Online FX Booking for Pickup — Reservation-based, cheapest handling fee

No need for a foreign currency account. Book online via bank website, specify currency, amount, branch, and date. After transfer, pick up in person with ID and transaction notice. Taiwan Bank’s “Easy Purchase” online FX booking is fee-free (using TaiwanPay costs only 10 TWD), with about 0.5% better rates.

Taoyuan Airport has 14 Taiwan Bank branches, 2 open 24 hours, ideal for pre-departure pickup.

Cost estimate: For 50,000 TWD, loss of 300-800 TWD.

• ✓ Better exchange rates, often fee-free, airport pickup option
• ✗ Requires 1-3 days reservation, pickup time limited, branch cannot change
• Suitable for: Planned travelers, airport pickup needs

Method 4: Foreign Currency ATM Withdrawal — 24/7 flexible, but sparse locations

Use chip-enabled bank card at foreign currency ATMs to withdraw yen cash, operate anytime, cross-bank fee only 5 TWD, directly debited from TWD account. Cathay United Bank’s foreign currency ATMs have a daily limit of 150,000 TWD, no exchange fee.

Disadvantage: Only about 200 ATMs nationwide, often out of cash during peak times (like airports), limited denominations (fixed 1,000/5,000/10,000 JPY).

Cost estimate: For 50,000 TWD, loss of 800-1,200 TWD.

• ✓ Instant, 24/7, flexible, low cross-bank fees
• ✗ Limited locations and denominations, often out of stock at peak times
• Suitable for: Busy professionals needing quick cash without visiting branch

Cost comparison table of 4 methods

How much yen can 10,000 TWD buy? Quick calculation

Based on Taiwan Bank’s rate on December 10, 2025, cash selling rate 4.85:

• 10,000 TWD ≈ 48,500 JPY (cash exchange)
• 10,000 TWD ≈ 48,700 JPY (spot rate, difference of about 200 JPY ≈ 40 TWD)

Choosing the right method can amplify this 200 JPY difference to 2,000 JPY at 50 million TWD, enough to buy several days’ worth of coffee at convenience stores.

After exchanging yen, how to “use” it? Don’t let your money sit idle

Yen fixed deposit: steady returns

E.SUN, Taiwan Bank foreign currency accounts, starting from 10,000 yen, annual interest 1.5-1.8%, suitable for conservative investors.

Yen ETFs: diversify volatility risk

Yuan Tai 00675U tracks the yen index, annual management fee 0.4%, can be bought as fractional shares via brokerage apps, offering better growth potential than just holding cash.

Yen insurance policies: medium-term income lock-in

Cathay, Fubon foreign currency savings insurance, guaranteed interest rate 2-3%, suitable for 3-10 year holding.

Yen forex trading: capture swing opportunities

Trade USD/JPY or EUR/JPY directly via forex platforms like Mitrade with zero commission and low spreads, support 24-hour, long/short, suitable for advanced traders confident in exchange rate movements.

Quick FAQ

Q: What’s the difference between cash rate and spot rate?
Cash rate applies to physical cash transactions (travel, in-branch), higher cost but immediate; spot rate is used for electronic transfers (foreign currency accounts, non-cash settlement), T+2 settlement, closer to international market.

Q: What do I need to bring for in-branch currency exchange?
Taiwanese: ID + passport; foreigners: passport + residence permit. Large amounts (over 100,000 TWD) may require source declaration. Under 20 need parental accompaniment.

Q: Are there limits on foreign currency ATM withdrawals?
Different banks have different limits (adjusted after October 2025). CTBC, Taishin: about 120,000-150,000 TWD per day; E.SUN: about 50,000-150,000 TWD (including card spending); other banks: usually 20,000 TWD per transaction. Suggest using your own bank card or spreading withdrawals to avoid cross-bank fees.