JPY exchange rate is 4.85. Which of the 4 exchange channels is the cheapest? Let's do the math.

December 10, 2025, the TWD/JPY exchange rate surpasses 4.85, appreciating over 8% compared to the beginning of the year at 4.46. The revival of travel demand to Japan and the influx of safe-haven funds have led to a noticeable increase in currency exchanges. But the key question is: how to exchange without losing out?

Many believe that bank counter exchange is the only option, but in reality, just the exchange rate spread can cost you over NT$1,500 more. We tested the four most common exchange channels in Taiwan and calculated the real rates for you.

Is now a good time to exchange JPY?

The answer is “Yes, but in installments.”

Currently, the TWD/JPY fluctuation range is about 2-5%. The US is entering a rate-cut cycle, while the Bank of Japan is preparing to raise interest rates—Governor Ueda’s hawkish comments have pushed market expectations to 80%, with a projected rate hike of 0.25 basis points to 0.75% on December 19 (a 30-year high). USD/JPY has fallen from 160 at the start of the year to 154.58 now, with a short-term test of 155 possible, but medium to long-term forecasts are below 150.

From an investment perspective, the yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), suitable for hedging Taiwan stock market volatility. For Taiwanese investors, when the Taiwan stock market becomes more volatile, exchanging part of their funds into yen deposits or ETFs can effectively reduce risk.

However, arbitrage trading faces liquidation risks, so full one-time exchange is not wise. The most prudent approach is to exchange in installments within the 4.80-4.85 range.

Practical comparison of 4 JPY exchange methods

1. Bank counter cash exchange — the most traditional but most costly

Carry NT$ cash directly to a bank or airport counter to exchange for cash JPY. This is the simplest method but also the most expensive.

Why is it costly? Banks use “cash selling exchange rates,” usually 1-2% worse than the spot rate. For example, as of December 10, 2025, Taiwan Bank’s cash selling rate is about 0.2060 TWD/JPY (1 TWD = 4.85 JPY), with some banks charging additional handling fees.

For NT$50,000, choosing the bank with the lowest fee, the cost is about NT$1,500-2,000. E.SUN Bank charges NT$100 per transaction, YuShan Bank also NT$100, and their rates are slightly worse, increasing costs.

Suitable for: Urgent needs (e.g., exhausted airport cash), small amounts, unfamiliar with online operations.

2. Online exchange + cash withdrawal — flexible and cost-effective

First, use the bank app or online banking to convert TWD to JPY at the “spot selling rate” (about 0.2063 TWD/JPY), then withdraw cash at a counter or foreign currency ATM.

The exchange rate is about 1% better, but withdrawal incurs additional fees (around NT$5-100 cross-bank). If you want cash, the total cost is roughly NT$500-1,000, similar to counter exchange.

Advantages: Can monitor rates 24/7, buy in installments at low points, reducing average cost. E.SUN Bank and Taiwan Bank support foreign currency accounts, with a minimum deposit of NT$10,000 or 10,000 JPY.

After exchanging, don’t let the money sit idle—consider transferring into yen fixed deposits (annual interest rate 1.5-1.8%), turning potential floating losses into gains.

Suitable for: Those experienced in forex operations, frequently using foreign currency accounts.

3. Online currency exchange + airport pickup — the top choice for travelers

No need to open a foreign currency account. Simply fill in the currency, amount, and pickup branch on the bank’s website, complete the transfer, then bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service.

Main advantage: Taiwan Bank’s online currency exchange is fee-free (pay NT$10 via TaiwanPay), with about 0.5% better rates. You can schedule pickup at Taoyuan Airport branches (14 locations, 2 open 24 hours), and pick up cash before departure.

For NT$50,000, the cost is about NT$300-800, making it nearly the lowest-cost option.

Disadvantages: Requires prior appointment (at least 1-3 days), pickup only during bank hours (not 24/7).

Suitable for: Travelers planning trips, especially those who can plan ahead.

4. Foreign currency ATM withdrawal — 24/7 emergency solution

Use a chip-enabled financial card to withdraw cash in JPY at foreign currency ATMs, supporting 24-hour operation. Cross-bank fees are NT$5, cheaper than counter exchange.

E.SUN Bank’s foreign currency ATMs allow withdrawal from TWD accounts, with a daily limit of NT$150,000, no exchange fee. However, there are only about 200 ATMs nationwide, with fixed denominations (1,000, 5,000, 10,000 JPY), and cash may run out during peak times.

For NT$50,000, the cost is about NT$800-1,200.

Suitable for: Those who don’t have time to visit banks or need cash urgently.

Summary of NT$50,000 exchange costs

How to use a JPY account? Don’t let your money depreciate after exchange

After acquiring JPY, don’t let your money lose value. Here are four configurations suitable for beginners:

1. JPY fixed deposit — Conservative choice
Open a foreign currency account, deposit into a fixed deposit online, with an annual interest rate of 1.5-1.8%, starting from 10,000 JPY. YuShan Bank and Taiwan Bank support this. It’s like earning interest just by holding.

2. JPY insurance policy — Medium-term capital preservation
Cathay and Fubon life offer JPY savings insurance with guaranteed interest rates of 2-3%, suitable for holding 3-5 years.

3. JPY ETFs (00675U, 00703) — Growth allocation
YuanDa 00675U tracks the JPY index, with a management fee of 0.4%. You can buy fractional shares via brokerage apps for dollar-cost averaging. Higher risk than deposits but with long-term appreciation potential.

4. Forex trading (USD/JPY, EUR/JPY) — Swing trading profits
Trade JPY currency pairs directly on forex platforms, with both long and short options, 24-hour trading. Suitable for experienced investors.

Quick FAQs

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

Cash rate is the buy/sell rate banks offer for physical banknotes, with a 1-2% spread, paid on the spot. Spot rate is the FX market’s T+2 settlement rate, closer to international market prices, but requires waiting for settlement.

Q. How much JPY can NT$10,000 buy?

Using Taiwan Bank’s cash selling rate of 4.85, NT$10,000 ≈ 48,500 JPY. Using the spot rate of 4.87, about 48,700 JPY.

Q. What to bring for counter exchange?

ID + passport (foreigners bring passport + residence permit). For online reservations, also bring transaction notice. Under 20, need parental consent; amounts over NT$100,000 may require source of funds declaration.

Q. What’s the daily withdrawal limit at foreign currency ATMs?

Post-2025 regulations, most banks set daily limits around NT$100,000-150,000 equivalent. Use your own bank card to avoid cross-bank fees, and plan ahead during peak times to prevent cash shortages.

Conclusion

The JPY is no longer just for travel “pocket money”; it also has hedging and small investment value. Whether traveling or investing, follow the principles of “installment exchange + value-added after exchange” to minimize costs.

Beginners can start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transition into JPY fixed deposits, ETFs, or swing trading based on needs. This way, you can enjoy your trip and add a layer of protection during global market fluctuations.