Year-end exchange rate for the local currency hits 4.85. How can Taiwanese people exchange money most cost-effectively?

The wave of Taiwan dollar depreciation continues, with the Japanese yen exchange rate rising from 4.46 at the beginning of the year to 4.85 in December 2025, a total appreciation of 8.7%. Many people are asking: is it really worthwhile to exchange yen now? The answer is yes, but only if you choose the right currency exchange method. Simply selecting different channels can result in cost differences of over 1,000 yuan, enough to buy a month’s worth of bubble tea.

Is it worthwhile to exchange yen now? Timing analysis

In the second half of 2025, Taiwan’s currency exchange demand increased by 25%, driven mainly by three factors: travel recovery, risk hedging, and arbitrage opportunities.

Looking at the exchange rate trend, the yen, as one of the world’s three major safe-haven currencies (USD, Swiss Franc, Yen), has a natural property of value preservation. The Bank of Japan Governor Ueda Kazuo recently made hawkish comments, pushing up rate hike expectations to 80%, with a 0.25 basis point increase to 0.75% expected at the December 19 meeting (a 30-year high). Japanese government bond yields have hit a 17-year high of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now.

However, short-term fluctuations still exist. Closing arbitrage trades and geopolitical conflicts could cause swings of 2-5%. Therefore, the best strategy is to enter in batches, exchanging currency at different times to average out costs.

Four channels for Taiwanese to exchange yen, which one should you choose?

Many think exchanging yen is just going to the bank, but in reality, there are four completely different methods with huge cost differences. Let’s compare with real data.

Option 1: Traditional counter exchange (most conservative but highest cost)

Bring cash NT dollars to a bank branch or airport counter to exchange for yen cash. This is the most straightforward method but also the most expensive.

The reason is simple: banks use the “cash selling rate,” which is about 1-2% worse than the spot rate. For example, Taiwan Bank’s cash selling rate on December 10, 2025, was 0.2060 TWD/JPY (1 TWD = 4.85 JPY), which is already a favorable rate. Plus, some banks charge an additional 100-200 TWD handling fee, so exchanging 50,000 TWD could lose up to 1,500-2,000 TWD.

Suitable for: Elderly or travelers unfamiliar with online operations who need small, urgent exchanges (e.g., at the airport).

Major bank counter rates (2025/12/10):

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

Option 2: Online currency exchange to foreign currency account (suitable for investors)

Use bank app or online banking to convert TWD to JPY and deposit into a foreign currency account. This method uses the “spot selling rate,” about 1% better than cash selling rate.

If no cash is needed, you can save on withdrawal fees. If cash is required, you can go to the counter or withdraw via foreign currency ATM, but additional exchange spread fees (starting around 100 TWD equivalent) may apply.

The advantage is you can observe exchange rate movements, entering in batches at low points (e.g., when TWD/JPY drops below 4.80) to average costs. Exchanging 50,000 TWD might result in a loss of about 500-1,000 TWD.

Suitable for: Those experienced in forex operations, planning to hold yen long-term, or interested in yen fixed deposits (currently around 1.5-1.8% annual interest).

Option 3: Online currency exchange + counter or airport pickup (most recommended balanced approach)

No need to open a foreign currency account; just fill in currency, amount, pickup branch, and date on the bank’s official website. After completing the transfer, bring ID and transaction notification to pick up at the counter. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay via TaiwanPay for only 10 TWD), with about 0.5% better rates.

The biggest convenience is the ability to reserve airport branch pickup. Taoyuan Airport has 14 Taiwan Bank outlets (2 open 24 hours), allowing you to withdraw before departure without hassle. Exchanging 50,000 TWD results in a loss of about 300-800 TWD.

Suitable for: Travelers with a planned schedule who want to pick up cash at the airport, or those needing large transfers for counter pickup.

Option 4: 24-hour foreign currency ATM (fastest but limited)

Use a chip-enabled debit card at foreign currency ATMs to withdraw yen cash, operational 24/7. Cross-bank withdrawal fee is only 5 TWD. E.SUN Bank’s foreign currency ATM allows withdrawal from TWD account, with a daily limit of 150,000 TWD and no exchange fee.

However, the drawbacks are clear: only about 200 ATMs nationwide, limited denominations (fixed 1000/5000/10000 JPY), and during peak times (like airports), cash may run out. Exchanging 50,000 TWD could result in a loss of about 800-1,200 TWD.

Suitable for: Office workers who have no time to visit banks or travelers needing urgent cash.

Cost comparison table of the four options

Which method should I choose? Decision map

Budget 50,000-100,000 TWD travelers: Use online exchange to reserve airport pickup, which is hassle-free and cost-effective.

Large transfers over 300,000 TWD: Counter service is necessary, but remember to book online in advance to confirm branch and time. Staff can also assist with declaring large fund sources.

Urgent needs: Foreign currency ATM is the only option, but check if cash is available at that time to avoid sold-out situations.

Long-term yen investment: Open a foreign currency account, deposit via spot rate, then transfer into fixed deposits or ETFs. This minimizes costs and earns interest.

Common pitfalls when exchanging yen, one answer

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

Cash exchange rate is the rate banks offer for physical cash (banknotes/coins), provided on the spot but at a worse rate (1-2% below spot). Spot rate is the foreign exchange market rate for settlement within two business days (T+2), suitable for electronic transfers, offering better rates but requiring waiting for settlement.

Q: How much yen can I get with 10,000 TWD?

Using Taiwan Bank’s cash selling rate of 4.85 on December 10, 2025, about 10,000 TWD can exchange for approximately 48,500 JPY. Using the spot selling rate (~4.87), it’s about 48,700 JPY, a difference of roughly 200 JPY.

Q: What ID do I need for counter exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. If booking online, also bring transaction notification. Under 20 requires parental consent and ID. For large exchanges (over 100,000 TWD), may need to declare source of funds.

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

Starting October 2025, regulations vary by bank. CTBC allows equivalent of 120,000 TWD per day; Taishin about 150,000 TWD; E.SUN about 150,000 TWD (including debit). It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

After exchanging yen, how to make it grow?

Don’t let your yen sit idle without interest. Based on your risk appetite, here are four common ways:

Conservative: Yen fixed deposit
Open a foreign currency account with E.SUN or Taiwan Bank, deposit online. Minimum 10,000 JPY, annual interest 1.5-1.8%. Suitable for capital preservation with some interest.

Mid-term: Yen insurance policy
Buy savings insurance from Cathay or Fubon Life, with guaranteed interest rates of 2-3%. Suitable for families needing protection and earning interest.

Growth: Yen ETFs
For example, Yuanta 00675U tracking yen index, can be bought as fractional shares via broker app, suitable for dollar-cost averaging. Management fee 0.4% annually, moderate risk and return.

Swing trading: Forex trading
Trade currency pairs like USD/JPY or EUR/JPY directly. Advantages include two-way trading, 24-hour market, small capital required. Risks are higher and require technical analysis skills.

Final advice

Yen is no longer just for travel “pocket money,” but also a hedge and investment asset. Whether you plan to visit Japan next year or want to hedge against TWD depreciation by converting funds into yen, following the principles of batch exchange + don’t leave the money idle can minimize costs and maximize returns.

For beginners, start with the simplest options like “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transfer yen into fixed deposits, ETFs, or swing trading based on your needs. This way, you can enjoy more cost-effective trips and add a layer of protection during global market fluctuations.