How much Japanese Yen should I exchange for a trip to Japan? The latest 2025 exchange rates and a complete guide to the 4 major methods

Is now a good time to exchange Japanese Yen?

Brief answer: Yes, but in installments.

As of December 10, 2025, the TWD/JPY exchange rate stands at 4.85, meaning 1 TWD can be exchanged for 4.85 JPY. Compared to the 4.46 at the beginning of the year, the yen has appreciated by approximately 8.7%. For those planning to travel to Japan or considering small-scale investments, it’s a decent time to exchange for yen.

However, just “exchanging now” isn’t enough. The key lies in how and where to exchange to minimize transaction fees.

Why is the JPY worth paying attention to?

The yen is not just for travel pocket money. From daily life to financial perspectives, it has practical value:

Daily Use: Most Japanese merchants only accept cash (credit card penetration is only 60%); purchasing Japanese cosmetics, clothing, and anime merchandise requires payment in yen; students working part-time abroad need to exchange money in advance to avoid exchange rate fluctuations.

Investment Perspective: The yen is one of the three major safe-haven currencies globally (the other two are USD and Swiss Franc). During market turbulence, funds tend to flow into the yen as a safe harbor. In 2022, during the Russia-Ukraine conflict, the yen appreciated by 8% in a week, while the stock market fell by 10%. For Taiwanese investors, exchanging yen can hedge against Taiwan stock market risks.

Additionally, the Bank of Japan is on the verge of raising interest rates. Recently, Governor Ueda Kazuo’s hawkish comments have pushed market expectations to 80%, with a rate hike of 0.25 bps to 0.75% expected at the December 19 meeting (a 30-year high), and Japanese government bond yields have hit a 17-year high of 1.93%. This indicates that the yen’s long-term support remains strong.

How much yen should I exchange for 10,000 TWD?

Using Taiwan Bank’s exchange rate on December 10, 2025:

Cash selling rate: approximately 4.85 (spot rate about 4.87)

• 10,000 TWD → about 48,500 JPY (using cash rate) or 48,700 JPY (using spot rate)
• 50,000 TWD → about 242,500 JPY (cash) or 243,500 JPY (spot)
• 100,000 TWD → about 485,000 JPY (cash) or 487,000 JPY (spot)

The actual amount received may vary depending on the bank, exchange rate fluctuations, and fees.

Which of the 4 methods to exchange yen is most cost-effective?

There are four main channels for exchanging yen in Taiwan, with significant cost differences. Using 50,000 TWD as an example, let’s analyze each:

Method 1: In-person cash exchange (most traditional but most expensive)

Bring TWD directly to a bank or airport counter to receive cash on the spot.

Exchange rate: Use “cash selling rate” (1-2% worse than spot rate)
Fees: Usually free, some banks charge 100-200 TWD per transaction
Estimated cost: Loss of 1,500-2,000 TWD

Advantages: Immediate cash in hand, full denominations, staff assistance
Disadvantages: Exchange rate spread, limited by bank hours (weekday 9:00-15:30)
Suitable for: Those unfamiliar with online methods or needing urgent cash at the airport

Comparison of Taiwan Bank’s cash selling rates on December 10, 2025:

Method 2: Online currency exchange + cash withdrawal (mid-tier option)

Use bank app or online banking to convert at spot rate into yen, deposit into foreign currency account. If cash is needed, withdraw at counter or foreign currency ATM, incurring a spread fee (~100 TWD).

Exchange rate: Spot sell rate (about 1% better than cash rate)
Fees: Withdrawal fee of 100-200 TWD
Estimated cost: Loss of 500-1,000 TWD

Advantages: 24/7 operation, can stagger entries to average cost, better rates
Disadvantages: Need to open foreign currency account first, extra fee for cash withdrawal
Suitable for: Those experienced with forex, wanting to monitor rate trends. After withdrawal, can transfer into yen fixed deposits (annual interest 1.5-1.8%) to increase returns.

Method 3: Online currency conversion + airport pickup (best for office workers)

No need for a foreign currency account. Fill in amount, branch, and pickup date on bank website, complete transfer, then pick up with ID. Taiwan Bank and Mega Bank offer this service, with appointment options at the airport.

Exchange rate: About 0.5% discount
Fees: Taiwan Bank’s “Easy Purchase” online currency exchange is free (pay via TaiwanPay, only 10 TWD)
Estimated cost: Loss of 300-800 TWD

Advantages: Best exchange rate, often fee-free, can choose airport pickup
Disadvantages: Need to book in advance (1-3 days), pickup only at scheduled branch
Suitable for: Well-planned travelers, those who want to prepare before departure. Taoyuan Airport has 14 Taiwan Bank branches (2 open 24 hours), very convenient.

Method 4: Foreign currency ATM withdrawal (most flexible)

Use chip-enabled financial cards at foreign currency ATMs to withdraw yen cash, available 24/7, with only 5 TWD cross-bank fee.

Fees: 5 TWD per withdrawal from TWD account, no currency exchange fee
Daily limit: varies by bank, Fubon Bank is 150,000 TWD
Estimated cost: Loss of 800-1,200 TWD

Advantages: Instant withdrawal, highly flexible, low cross-bank fee
Disadvantages: Limited locations (~200 nationwide), denominations fixed (1,000/5,000/10,000 yen), risk of stockouts during peak times
Suitable for: Those who need cash urgently without visiting a branch

ATM withdrawal limits (example):

Cost comparison of the 4 methods

Based on exchanging 50,000 TWD, December 2025 data:

How to exchange most cost-effectively? Installment strategy

If you have a budget of 50,000-200,000 TWD, the recommended optimal approach is: Combine online currency exchange with ATM withdrawals

Specific steps:

• Use Taiwan Bank’s online currency exchange for most of the amount, schedule pickup at the airport (best rate, lowest cost)
• Use the ATM for small emergency withdrawals (flexible 24/7, low cross-bank fee)

This way, you lock in the best rate and retain flexibility for last-minute cash needs.

How to use the yen after exchange?

Don’t let the yen sit idle (interest-free). Choose based on your purpose:

Conservative: Yen fixed deposit
Open an FX account at E.SUN or Taiwan Bank, deposit online. Minimum 10,000 yen, annual interest 1.5-1.8%.

Mid-term holding: Yen insurance policies
Cathay, Fubon life savings insurance with guaranteed interest rates of 2-3%.

Growth-oriented: Yen ETFs
Yuanta 00675U, Cathay 00703, tracking yen indices. Can buy fractional shares via brokerage apps, suitable for periodic investment.

Swing trading: Forex trading
Trade USD/JPY or EUR/JPY directly on forex platforms, with 24-hour long/short operations. Suitable for experienced traders.

FAQs

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

Cash rate: The rate banks offer for physical bills and coins, paid on the spot, but with higher costs (spread 1-2%).
Spot rate: The forex market’s T+2 settlement rate, used for electronic transfers, more favorable but takes 2 business days.

Q. What documents are needed to exchange yen?

In-person: ID + passport (foreigners bring passport + residence permit).
Online booking: also need transaction notification.
Large amounts (over 100,000 TWD) may require source of funds declaration.

Q. Are there withdrawal limits at foreign currency ATMs?

From October 2025, most banks set daily limits at 100,000-150,000 TWD. It’s advisable to split withdrawals or use your own bank card to avoid cross-bank fees. During peak times, cash may run out quickly, so plan ahead.

Summary

The yen has evolved from travel “pocket money” to an asset with hedging and investment value. By following the principles of “staggered exchange + not leaving funds idle,” you can lower costs and increase returns.

Beginners are recommended to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transfer into fixed deposits, ETFs, or forex swing trading as needed. This makes traveling more cost-effective and provides extra protection during market turbulence.