Japanese Yen Purchase Guide: The Most Cost-Effective Exchange Methods and Timing in 2025

Is it really worth buying Japanese Yen now?

As of December 10, 2025, the TWD/JPY exchange rate has reached 4.85. What does this mean for investors looking to enter the market? Let’s look at the data: compared to 4.46 at the beginning of the year, the Yen has appreciated approximately 8.7% year-to-date. This rally is quite significant under the pressure of TWD depreciation.

Market observations show that Taiwan’s foreign exchange demand in the second half of the year increased by 25%, driven by two factors—first, the recovery of the travel market, and second, investors beginning to consider safe-haven assets in their asset allocation. The recent hawkish stance by Bank of Japan Governor Ueda Kazuo has pushed market expectations of interest rate hikes to 80%. The December 19 meeting is expected to raise rates by 0.25 basis points to 0.75% (a 30-year high), with Japanese bond yields reaching a 17-year high of 1.93%. These signals indicate that the Yen is not just pocket money for travel but an asset with safe-haven value and investment potential.

In the short term, USD/JPY has fallen from a high of 160 at the start of the year to around 154.58, with still large fluctuations. Medium to long-term forecasts point below 150, but in the short term, it may rebound to 155. What does this mean? The key to buying Yen is to enter in batches rather than exchanging all at once.

Four ways to buy Yen: which is the most cost-effective?

Different exchange channels have astonishing differences in rates and fees. Let’s break down actual quotes.

Method 1: Traditional counter exchange—most convenient but most expensive

Bring cash TWD to a bank or airport counter to exchange for JPY cash. This is the most old-fashioned but also the most common method. The downside is clear: banks use “cash selling rates,” which are about 1-2% worse than the international spot rate. For example, Taiwan Bank’s cash selling rate on December 10, 2025, was 0.2060 TWD/JPY (about 4.85 JPY per TWD), plus fixed handling fees at some banks, making it the most costly.

Estimating for 50,000 TWD, this method results in a loss of about 1,500–2,000 TWD.

Who is it suitable for: People unfamiliar with online operations or needing small, urgent exchanges (e.g., at the airport).

Comparison of major banks’ cash selling rates (2025/12/10):

Method 2: Online foreign exchange + airport pickup—most efficient combo

This is a hidden gem many overlook. Fill out the exchange request via bank’s website or app, complete remittance, then bring ID and transaction notice to the airport to pick up. No need for a foreign currency account.

Taiwan Bank’s “Easy Purchase” online exchange nearly waives handling fees (only 10 TWD with Taiwan Pay), with about 0.5% rate advantage. Booking at the airport branch is even more convenient—Taoyuan Airport has 14 Taiwan Bank outlets, 2 of which operate 24 hours. Perfect for travelers planning ahead.

Estimating for 50,000 TWD, the loss is controlled within 300–800 TWD, saving about 60% of the cost compared to counter exchange.

Who is it suitable for: Planned travelers who arrange their schedule in advance.

Method 3: Foreign currency ATM withdrawal—most flexible emergency option

Use a chip-enabled bank card to withdraw cash in JPY at foreign currency ATMs, available 24/7. E.SUN Bank’s foreign currency ATMs allow withdrawals from TWD accounts, with a daily limit of 150,000 TWD and cross-bank fee of only 5 TWD. Very friendly for urgent needs.

However, there are about 200 foreign currency ATM locations nationwide, and denominations are fixed (1,000, 5,000, 10,000 JPY). During peak times (e.g., at airports or year-end travel), cash may run out.

Estimating for 50,000 TWD, the loss is about 800–1,200 TWD.

Who is it suitable for: People who don’t have time to visit banks or need urgent cash.

Method 4: Online exchange + foreign currency account—investor’s choice

Open a foreign currency account, transfer TWD via online banking app to deposit JPY, using “spot sell rate” (about 1% better than cash selling rate). If cash is needed, withdraw via counter or ATM, but will incur exchange spread and handling fees (from about 100 TWD).

This method allows 24-hour operation, enabling batch entry at low rates after observing market trends, lowering average costs. After exchanging, you can also transfer to JPY fixed deposits (annual interest rate about 1.5–1.8%) or JPY ETFs, continuously growing your funds.

Estimating for 50,000 TWD, the loss is about 500–1,000 TWD.

Who is it suitable for: Experienced forex investors planning long-term holdings in Yen.

Cost comparison table of the four methods

Post-purchase Yen asset allocation

After buying Yen, the key is “don’t just leave it idle.” Here are four common follow-up options:

JPY fixed deposit: The most conservative choice. Open an account with a bank’s foreign currency service, deposit JPY online, minimum 10,000 JPY, with annual interest of 1.5–1.8%, providing stable income over 6–12 months.

JPY insurance policy: Cathay and Fubon offer Yen savings insurance, with guaranteed interest rates of 2–3%, suitable for medium-term holding (3–5 years).

JPY ETFs: Such as Yuanta 00675U or 00703, tracking Yen indices, can be bought as fractional shares via broker apps, with an annual management fee of 0.4%. Suitable for dollar-cost averaging.

Forex trading: Trade USD/JPY or EUR/JPY directly on trading platforms, with 24/7 long/short options, requiring minimal capital, suitable for experienced swing traders.

Common Q&A about Yen exchange

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

Cash rate refers to the buying and selling of physical cash (notes/coins). It’s convenient for immediate delivery but usually 1-2% worse than the spot rate. The spot rate is the exchange rate settled within two business days (T+2) in the forex market, mainly used for electronic transfers or non-cash settlement, offering better rates but requiring waiting for settlement.

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

Based on Taiwan Bank’s quote on December 10, 2025, the cash selling rate is about 4.85 (1 TWD ≈ 4.85 JPY). So, 10,000 TWD can exchange for approximately 48,500 JPY. Using the spot selling rate (about 4.87), it’s roughly 48,700 JPY, a difference of about 200 JPY (roughly 40 TWD).

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

Taiwanese citizens need to bring ID and passport; foreigners need passport and residence permit; companies need business registration proof. If pre-booked online, also bring transaction notice. Minors under 20 need a parent present. Large exchanges (over 100,000 TWD) may require source of funds declaration.

Q: Is there a limit for foreign currency ATM withdrawals?

Yes. After the 2025 reform, most banks’ ATM withdrawal limits are reduced to 100,000–150,000 TWD per day. For example, E.SUN Bank’s card has a single transaction limit equivalent to 50,000 TWD, with a daily cap of 150,000 TWD; other banks’ cards typically limit to 20,000 TWD per transaction. It’s recommended to split withdrawals or use your bank’s card to avoid cross-bank fees.

Summary: The golden rule for buying Yen

The Yen is no longer just pocket money for travel but an asset with safe-haven and investment value. Whether preparing for next year’s trip or capitalizing on TWD depreciation for asset allocation, mastering “batch buying + not leaving it idle after exchange” can minimize costs.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then shift to fixed deposits, ETFs, or swing trading based on needs. This way, you can enjoy more cost-effective travel and add a layer of protection during global market fluctuations.