Japanese Yen Exchange Guide: From Travel to Investment, Costs and Strategies for Converting TWD to JPY

As of December 2025, the NT dollar to Japanese Yen has already broken through the 4.85 level, and travel, study abroad, and investment demand for Japan are heating up again. Many people are asking: Is it a good time to exchange for Yen now? Actually, there is no absolute “best time” to exchange currency; the key lies in choosing the right channels and strategies.

Should I exchange Yen now? Exchange rate trend overview

From 4.46 at the beginning of the year to 4.85 now, the Yen has appreciated about 8.7%, and investment returns are quite substantial. But more importantly, the Bank of Japan’s policy direction—Governor Ueda and his hawkish stance—has pushed 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 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. It may briefly return to 155 in the short term, but medium to long-term forecasts suggest it will stay below 150. This indicates that the Yen’s safe-haven appeal continues to strengthen, especially amid global economic uncertainties.

Conclusion: Staggered entry is better than a one-time full exchange, as it can both hedge against exchange rate volatility and buy on dips.

Why is it worth exchanging Yen? Three key perspectives

1. Daily needs for travel, shopping, and purchasing代理

Shopping in Tokyo and Osaka, skiing in Hokkaido, vacation in Okinawa—most stores only accept cash (credit card penetration is only 60%). Additionally, Japan’s drugstores, fashion, and anime merchandise代理 and online shopping often require direct Yen payments.

2. Cost considerations for studying abroad and long-term residence

Is studying abroad worth it? This is a common question among Taiwanese students and parents. Besides tuition and living expenses, exchange rate risk is an implicit cost. Exchanging Yen in advance and making proper arrangements (such as fixed deposits, insurance policies) can effectively lock in costs and reduce additional expenses caused by exchange rate fluctuations. Japanese foreign currency fixed deposits with an annual interest rate of about 1.5-1.8% are not high, but better than Taiwan’s zero-interest environment.

3. Strategic value of risk-hedging assets

The Yen is one of the three major global safe-haven currencies (along with USD and Swiss Franc). During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week, effectively buffering stock market declines. For Taiwanese investors, exchanging Yen is not just for leisure but also for hedging Taiwan stock market volatility. Meanwhile, Japan’s ultra-low interest rate policy (0.5%) makes Yen a “funding currency,” with many investors borrowing low-interest Yen to buy higher-yield USD investments (USD-JPY interest rate differential of 4.0%), then closing positions and buying back Yen when risks increase.

Four exchange channels, how to choose?

Counter exchange: traditional but costly

Carrying NT dollars cash to bank branches or airport counters and using “cash selling rate” (1-2% higher than spot rate). Taiwan Bank’s cash selling rate on December 10, 2025, is about 0.2060 Yen per NT dollar. Some banks also charge fixed handling fees (100-200 TWD). Overall, exchanging 50,000 TWD may result in a loss of about 1,500-2,000 TWD.

Suitable for: Those unfamiliar with online operations or needing small, urgent exchanges (e.g., at the airport).

Latest rates from major banks (as of December 10, 2025):

Online exchange + foreign currency account: balanced approach

Using bank app or online banking to sell NT dollars at the “spot selling rate” (about 1% better than cash rate), converting to Yen and depositing into a foreign currency account. If cash is needed, can be withdrawn at counters or foreign currency ATMs, with additional handling fees (minimum 100 TWD). Suitable for those experienced in forex trading, observing exchange rate trends, and willing to buy on dips (e.g., when NT dollar to Yen drops below 4.80). Exchanging 50,000 TWD may result in a loss of about 500-1,000 TWD.

Suitable for: Readers with forex experience, using foreign currency accounts, and interested in investing in Yen deposits or ETFs.

Online currency exchange + airport pickup: best before departure

No need for a foreign currency account—just fill in currency, amount, pickup branch, and date on the bank’s website. Taiwan Bank’s “Easy Purchase” online exchange fee is waived (only 10 TWD via TaiwanPay), with a 0.5% exchange rate advantage. Exchanging 50,000 TWD results in a loss of about 300-800 TWD. Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours), allowing designated airport pickup.

Suitable for: Travelers with a planned schedule, those wanting to pick up cash directly at the airport, and students preparing for study abroad.

Foreign currency ATM: 24-hour flexible withdrawal

Using chip-enabled debit cards at foreign currency ATMs to withdraw Yen cash, supporting 24-hour operation and interbank transactions (only 5 TWD fee per transaction from NT accounts). E.SUN Bank’s foreign currency ATM allows NT dollar withdrawals with a daily limit of 150,000 TWD, no exchange fee. Exchanging 50,000 TWD may result in a loss of about 800-1,200 TWD.

Disadvantages: Limited locations (about 200 nationwide), cash may run out during peak times, so plan ahead.

Suitable for: Those with no time to visit banks or needing urgent cash.

Cost comparison of four methods (using 50,000 TWD as example)

After exchanging Yen: let your money keep growing

Once you have Yen in your account, it can be idle without interest. Consider the following options:

1. Yen fixed deposit: Stable, open at E.SUN, Taiwan Bank, online deposit from 10,000 Yen, with annual interest of 1.5-1.8%.

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

3. Yen ETFs (00675U, 00703): Growth-oriented, Yuanta 00675U tracks Yen index, can buy fractional shares via broker apps, suitable for dollar-cost averaging.

4. Forex trading: Advanced option, directly trade Yen currency pairs like USD/JPY, EUR/JPY, with two-way and 24-hour trading, suitable for swing traders.

Quick FAQs

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

Cash rate is the rate banks offer for physical cash (bills/coins), suitable for travel exchange. It’s on average 1-2% higher than spot rate. Spot rate is the foreign exchange market rate for settlement within two business days (T+2), mainly used for electronic transfers, offering more favorable rates close to international market prices.

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, 10,000 TWD can buy about 48,500 Yen. Using the spot selling rate (about 4.87), it’s approximately 48,700 Yen, a difference of about 200 Yen (roughly 40 TWD).

Q. What do I need to bring for counter exchange?

Taiwanese citizens: ID card + passport; foreigners: passport + residence permit. If for company, bring business registration. If booked online in advance, bring transaction notice. Under 20 years old need parent’s consent and ID. Large exchanges (over 100,000 TWD) may require source of funds declaration.

Q. What’s the limit for foreign currency ATM withdrawals?

As of 2025, limits vary by bank: China Trust equivalent of 120,000 TWD/day; Taishin Bank 150,000 TWD/day; E.SUN Bank 150,000 TWD/day (including debit). It’s recommended to use your own bank card to avoid cross-bank fees (5 TWD per transaction).

Final advice

Yen is no longer just pocket money for travel but an asset with hedging and investment value. Whether preparing for next year’s Japan trip, considering the cost of studying abroad, or shifting into hedging assets amid NT dollar depreciation pressure, following the principles of “phased exchange + don’t leave it idle after exchange” can lower costs and amplify gains.

For beginners, start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transition into fixed deposits, ETFs, or swing trading based on your needs. This way, you not only enjoy more cost-effective travel but also gain an extra layer of protection during global market fluctuations.