Which method is the most cost-effective for exchanging TWD to JPY cash? A practical comparison of 4 major channels

December 10, 2025, the Taiwan dollar against the Japanese yen rose above the 4.85 level, an 8.7% increase from 4.46 at the beginning of the year. This upward trend not only attracts travelers planning trips to Japan but also prompts many investors to consider allocating yen assets as a hedge. But the key question is: How to exchange yen cash without losing money?

We have summarized the four most common currency exchange channels in Taiwan, calculating directly with the official rates. A difference of NT$50,000 could mean a gap of NT$1,700.

Why is it worth exchanging for yen? The dual appeal of travel and investment

Japan is not just a holiday destination; from a financial perspective, the yen itself holds strategic value.

Travel expenses: Shopping in Tokyo, skiing in Hokkaido, vacations in Okinawa—most scenarios still rely on cash (credit card penetration is only 60%), so independent travelers generally need to exchange yen cash in advance.

Investment perspective: The yen ranks among the world’s three major safe-haven currencies (alongside USD and Swiss Franc). When Taiwan stocks fluctuate or geopolitical risks rise, holding some yen can effectively hedge. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, while stocks fell by 10%, demonstrating the yen’s safe-haven effect.

Additionally, the Bank of Japan (BOJ) is on the verge of raising interest rates—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), further supporting the yen’s strength.

Breakdown of the four main ways to exchange yen cash in Taiwan

Method 1: Bank counter cash exchange — traditional but highest cost

Bring NT$ cash directly to a bank branch or airport counter to exchange for yen notes. The operation is straightforward, but using the “cash selling rate” (1-2% worse than the spot rate) results in the largest overall loss.

For example, Taiwan Bank’s rate on December 10, 2025, is 0.2060 NT$/JPY (meaning NT$1 exchanges for 4.85 yen). Some banks also charge handling fees, such as E.SUN, E.SUN, Cathay United, ranging from NT$100-200 per transaction.

Cost estimate: NT$50,000 exchanged at the counter could lose NT$1,500-2,000.

Suitable for: Travelers unfamiliar with online operations or those needing small amounts of cash urgently at the airport.

Major banks’ cash selling rates and handling fees on December 10, 2025:

Method 2: Online currency exchange followed by cash withdrawal at counter or ATM — flexible and moderate

Use bank app or website to convert NT$ to yen at the “spot sell rate” (better than cash rate by about 1%), deposit into a foreign currency account. When cash is needed, withdraw at counters or foreign currency ATMs. The biggest advantage is observing exchange rate trends and entering in batches at low points to average costs.

For example, after currency exchange via E.SUN Bank app, withdrawing yen cash incurs handling fees equal to the difference between spot and cash rates, with a minimum NT$100. Multiple withdrawals can further optimize costs.

Cost estimate: NT$50,000 split into multiple exchanges could lose NT$500-1,000.

Suitable for: Those experienced with forex, holding yen long-term, or considering yen fixed deposits (annual interest rate 1.5-1.8%) to increase returns.

Method 3: Online currency exchange reservation for direct pickup — lowest time cost

No need to open a foreign currency account in advance. Fill in currency, amount, pickup branch, and date on the bank’s website. After transfer, pick up with ID and transaction notice at the counter. Taiwan Bank’s “Easy Purchase” online exchange is fee-free (pay NT$10 via TaiwanPay), with about 0.5% better rates.

This is the most convenient pre-departure reservation method, especially at Taoyuan Airport, which has 14 Taiwan Bank outlets (2 open 24 hours), allowing direct pickup of yen cash at the airport, saving time on bank visits.

Cost estimate: NT$50,000 online exchange, losing NT$300-800.

Suitable for: Planned travelers who want to pick up cash at the airport.

Method 4: Foreign currency ATM instant withdrawal — most convenient 24/7

Use a chip-enabled financial card at foreign currency ATMs to withdraw yen cash. Supports 24-hour operation and interbank withdrawals (only NT$5 fee). E.SUN Bank’s foreign currency ATMs allow withdrawal from NT$ accounts, with a daily limit of NT$150,000 and no exchange fee.

Disadvantages include about 200 ATMs nationwide, fixed denominations of 1,000, 5,000, 10,000 yen, and potential cash shortages during peak times (e.g., airports). It’s recommended not to wait until the last minute.

Cost estimate: NT$50,000 withdrawal via foreign currency ATM, losing NT$800-1,200.

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

Summary table of the four exchange methods

Estimating for NT$50,000 at December 2025 rates:

Beginner tip: For a budget of NT$50,000-200,000, a combination of “online exchange + airport pickup” or “foreign currency ATM” is most cost-effective.

Quick FAQs

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

Cash exchange rate applies to physical banknotes and coins, convenient for immediate use but usually 1-2% worse than the spot rate. The spot rate is the market price for foreign exchange settled within two business days (T+2), used mainly for electronic transfers, and closer to international market prices. In simple terms: cash rate = more convenient but costlier; spot rate = cheaper but requires waiting.

Q. How much yen can I get with NT$10,000?

Yen amount = NT$10,000 × current rate (TWD/JPY)

At Taiwan Bank’s cash selling rate of 4.85, NT$10,000 ≈ 48,500 yen; at spot rate 4.87, NT$10,000 ≈ 48,700 yen. The difference is about 200 yen (roughly NT$40).

Q. What documents are needed to exchange foreign currency?

Taiwanese citizens need ID card + passport; foreigners need passport + residence permit. For company-based exchanges, business registration documents are required. For online pre-booking, transaction notice is needed. Minors under 20 require parental consent. Large exchanges over NT$100,000 may require source of funds declaration.

Q. What is the limit for foreign currency ATM withdrawals?

As of October 2025, bank limits are:

It’s recommended to use your own bank card to avoid NT$5 interbank fee, and plan ahead during peak times to prevent cash shortages.

After getting yen — how to keep your money growing

Once you have yen cash, instead of letting it sit idle with no interest, consider these four options:

Yen fixed deposit: The most stable, open online via E.SUN/Taiwan Bank foreign currency accounts, starting from 10,000 yen, with annual interest rates of 1.5-1.8%.

Yen insurance policies: Cathay/Fubon savings insurance with guaranteed rates of 2-3%, suitable for medium-term holding.

Yen ETFs: Growth-oriented options like Yuanta 00675U tracking yen indices, available for fractional investment via brokerage apps.

Forex swing trading: Trade USD/JPY or EUR/JPY directly on forex platforms, suitable for experienced traders with two-way and 24-hour trading, but watch for risks.

The BOJ’s rate hikes favor the yen, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) may temporarily weaken the currency. Expect USD/JPY to rebound to around 155 in the short term, with a long-term target below 150. For investment, yen ETFs with a management fee of only 0.4% are a prudent way to diversify risk.

Final advice

The yen is no longer just for travel “pocket money,” but also a hedge asset with small investment potential. Whether planning a trip to Japan or capitalizing on Taiwan dollar depreciation, following the principles of “batch exchange” and “not leaving money idle after exchange” can minimize costs and maximize returns.

Beginners should start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then gradually move into fixed deposits, ETFs, or swing trading based on needs. This way, you can enjoy more cost-effective trips and add a layer of asset protection during market turbulence.