Japanese Yen Exchange Complete Guide: Cost Comparison of 4 Channels, Batch Currency Exchange is the Most Cost-Effective

Why the Japanese Yen Has Become Taiwan’s Top Choice for Currency Exchange

The popularity of the Japanese Yen in Taiwan continues to rise, not only because of the rebound in travel to Japan but also because the Yen itself holds dual value for consumption and investment.

Everyday Life: Japan’s cash-based tourism culture remains strong (credit card penetration rate of 60%), coupled with demand for purchasing online, studying abroad, and working part-time, making the Yen the most commonly used foreign currency.

Investment Perspective: The Yen, as one of the world’s three major safe-haven currencies (alongside the US dollar and Swiss franc), benefits long-term from Japan’s stable economy and low debt levels. During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a single week, enough to hedge against stock market declines. For Taiwanese investors, converting to Yen adds a layer of insurance to their portfolios. Additionally, recent hawkish signals from Bank of Japan (BOJ) Governor Ueda Kazuo have driven market expectations of interest rate hikes, with the December 19 meeting expected to raise rates to 0.75% (a 30-year high), further supporting the Yen.

Is Now a Good Time to Exchange for Yen?

Exchange Rate Observation: As of December 10, 2025, the TWD/JPY rate is about 4.85 (meaning 1 TWD = 4.85 JPY), up 8.7% from the beginning of the year at 4.46. Based on this, 10,000 TWD can be exchanged for approximately 48,500 Yen.

Market Signals: In the second half of the year, Taiwan’s currency exchange demand increased by 25%, mainly driven by tourism recovery and risk hedging. Under the backdrop of the US entering a rate-cut cycle, the Yen remains supported. The short-term USD/JPY may test 155, but medium to long-term forecasts are below 150.

Conclusion: Exchanging for Yen is advantageous, but the key is staged operations. Converting all at once involves exchange rate risk, while gradual entry can average costs, especially within volatile ranges.

Four Methods to Exchange Yen: ATM, Bank, Online Currency Exchange — Cost Comparison

Many think there is only one way to exchange Yen through banks, but even just the difference in exchange rates can cost you several drinks. Here’s a breakdown of the real costs for each method:

Method 1: Bank Counter Cash Exchange (Highest Cost)

Bring cash TWD to a bank or airport counter to exchange, using the “cash selling rate” (1-2% worse than spot rate). Simple and convenient, but more expensive.

Example: Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 TWD/JPY. 50,000 TWD yields about 242,718 Yen, plus handling fees (some banks charge NT$100-200 per transaction).

Advantages: Safe, reliable, denominations available (1,000/5,000/10,000 Yen)
Disadvantages: Exchange rate spread, limited operating hours, handling fees
Suitable for: Urgent airport needs, unfamiliar with online methods

Method 2: Online Currency Exchange to Foreign Currency Account (Investment-Oriented)

Use online banking app to convert TWD to Yen and deposit into a foreign currency account, using the spot selling rate (about 1% better than cash rate). If cash withdrawal is needed, additional fees apply.

Features: Can operate 24/7, observe low exchange rate points (below 4.80). E.SUN Bank offers foreign currency accounts with 1.5-1.8% annual interest, akin to Yen investment.

Advantages: 24-hour operation, better rates, can invest in Yen fixed deposits
Disadvantages: Need to open a foreign currency account first, withdrawal fees
Suitable for: Experienced forex investors planning to hold Yen

Method 3: Online Currency Exchange for Airport Pickup (Most Convenient)

No need for a foreign currency account. Book via bank website, fill in currency, amount, pickup branch, and date, then pick up in person. Taiwan Bank’s “Easy Purchase” waives handling fees (pay NT$10 via TaiwanPay), with about 0.5% better rates.

Can reserve at 14 Taiwan Bank locations at Taoyuan Airport (2 open 24 hours). Ideal for collecting before departure.

Advantages: Better rates, often no handling fee, airport pickup
Disadvantages: Need to book 1-3 days in advance, pickup during business hours
Suitable for: Planned travelers, pre-trip arrangements

Method 4: Foreign Currency ATM Withdrawal (Most Flexible)

Use a chip-enabled financial card at foreign currency ATMs to withdraw Yen cash, available 24/7. Cross-bank withdrawal fee is NT$5 (deducted from TWD account). E.SUN Bank’s foreign currency ATM limit is NT$150,000 per day, with no exchange fee.

There are about 200 ATMs nationwide, but limited in number and cash may run out during peak times. It’s recommended not to wait until the last minute.

Advantages: Instant withdrawal, 24/7 access, low cross-bank fees
Disadvantages: Limited locations, fixed denominations (1,000/5,000/10,000 Yen)
Suitable for: Emergency needs, no time to visit bank

Cost comparison of four methods (estimated for 50,000 TWD exchange)

Conclusion: Online currency exchange + airport pickup is the most cost-effective (loss as low as NT$300), with foreign currency ATM offering the most flexibility.

After Exchanging Yen, Don’t Just “Lounge”: Investment Options Comparison

After exchanging Yen, don’t let your money sit idle (no interest). Here are four common options suitable for small-scale beginners:

1. Yen Fixed Deposit (Capital preservation): E.SUN/Bank of Taiwan offer foreign currency accounts with a minimum of 10,000 Yen, annual interest rate 1.5-1.8%.

2. Yen Insurance Policy (Mid-term lock-in): Cathay/ Fubon life insurance savings plans with guaranteed interest rates of 2-3%.

3. Yen ETF (Growth allocation): Yuanta 00675U tracks Yen index, with 0.4% annual management fee, can be bought as fractional shares via broker apps.

4. Forex Trading USD/JPY (Swing trading): Directly trade Yen currency pairs, both long and short, 24-hour trading, with small capital.

While Yen is a strong hedge, it also has two-way volatility. Rate hikes by the BOJ are positive for Yen, but global arbitrage unwinding or geopolitical conflicts could suppress it. Investors should choose based on their risk tolerance.

How Much RMB for 10,000 Yen? International Exchange Rate Benchmark

Many investors are concerned about Yen-RMB exchange rates. As of December 10, 2025:

1 Yen ≈ 0.052 RMB (JPY/CNY)

Thus, 10,000 Yen ≈ 520 RMB.

Compared to the TWD/JPY rate of 4.85, the RMB/JPY rate fluctuates more due to USD movements and Chinese central bank policies. Yen, as a safe-haven currency, is more attractive under rate hike expectations, but watch for RMB depreciation pressures and Yen appreciation potential.

Frequently Asked Questions

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

Cash rate (Cash Rate) applies to physical bills/coins, suitable for travel exchange. It offers immediate cash but has a 1-2% spread. Spot rate (Spot Rate) is used for electronic transfers and foreign currency accounts, settled T+2, offering more favorable rates close to international markets.

Q: What ID do I need to exchange foreign currency?

For counter transactions, bring ID + passport (foreigners need passport + residence permit). Online booking requires transaction notification. Under 20 needs parental accompaniment; amounts over NT$100,000 may require source of funds declaration.

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

Post October 2025, limits vary by bank. CTBC Bank equivalent NT$120,000/day, Taishin Bank NT$150,000/day, E.SUN NT$50,000 per transaction (total NT$150,000/day including card charges). It’s recommended to split withdrawals to avoid cross-bank fees.

Final Advice for Exchanging Yen

The Yen has evolved from a travel “pocket money” to an asset with both hedging and investment value. Whether traveling or hedging Taiwan stocks, following the principles of staged exchange + post-exchange investment can minimize costs and maximize returns.

Beginners are advised to start with Taiwan Bank online currency exchange + airport pickup or foreign currency ATM, then progress to fixed deposits, ETFs, or forex swing trading as needed. This approach not only makes travel more economical but also adds a layer of protection during global market turbulence.