Year-end new banknotes preview: Which of the 4 Japanese yen channels is the most cost-effective?

Under the pressure of TWD depreciation, exchanging for JPY has become a task for many people at year’s end. As of December 10, 2025, the TWD/JPY exchange rate has reached 4.85, appreciating over 8% since the beginning of the year. The wave of traveling abroad and investing in JPY has also heated up. But do you know? Just choosing the wrong currency exchange channel can cost you over NT$1,500 more in one go.

Don’t rush to the bank first; clarify your needs before acting—this way, you can minimize the cost of exchanging for new bills.

Ask Yourself Three Questions First

1. When do you need JPY?
A week before traveling? Flying tomorrow? Or want to invest gradually? The timeline determines the best channel.

2. How much money to exchange?
Under NT$50,000? Over NT$500,000? The amount affects handling fees and daily limits.

3. Is it for travel or investment?
Purely for consumption can simplify the process; for investment, consider exchange rate fluctuations and subsequent allocation.

4 Practical Channels for Exchanging JPY Compared

1. Over-the-counter exchange — The most traditional but most expensive

Bring cash in TWD directly to a bank or airport counter to exchange for new JPY bills. It sounds simple, but this is the highest-cost method.

Banks use “cash selling exchange rate” (about 1-2% worse than spot rate), plus fixed handling fees at some banks. For NT$50,000, the cost loss is about NT$1,500-2,000.

When is this suitable?
If you suddenly realize at the airport that you forgot your passport with JPY, the amount is small (under NT$3,000), or elderly people unfamiliar with online operations.

Quick bank rate check

2. Online exchange + counter withdrawal — Moderate cost, high flexibility

Use bank app or online banking to convert TWD into JPY in a foreign currency account (enjoy spot selling rate, saving about 1%), then go to branch or foreign currency ATM to withdraw cash.

Advantages: 24-hour operation, can buy in batches to average costs, relatively favorable exchange rates. Disadvantages: withdrawal incurs additional handling fees (NT$5-100 across banks), overall loss about NT$500-1,000.

When is this suitable?
If you have a foreign currency account, plan to invest in JPY long-term, or want to observe low exchange rates and buy in parts.

3. Online currency exchange + airport pickup — Best choice for year-end travel

No need for a foreign currency account. Book exchange online directly via bank websites (Taiwan Bank “Easy Purchase”, Mega Bank), specify airport branch and pickup date, then pick up new bills with ID and notification the next day.

Taiwan Bank charges only NT$10 via Taiwan Pay, with about 0.5% favorable rate, losing NT$300-800. Many airport locations (Taoyuan Airport Taiwan Bank has 14 branches, 2 open 24 hours) make it ideal for pre-trip planning.

When is this suitable?
Well-planned trips, confirmed itineraries, want to pick up new bills directly at the airport, amounts between NT$50,000-500,000.

Reminder:
At least 1-3 days in advance booking required. Pickup is limited to bank hours (airport branches usually 08:00-21:00). Once booked, branch changes are not possible.

4. Foreign currency ATM withdrawal — Most flexible but limited locations

Use chips financial card at foreign currency ATMs to withdraw JPY cash, 24/7, cross-bank fee only NT$5 (deducted from TWD account). E.SUN Bank foreign currency ATMs have a daily limit of NT$150,000, no exchange handling fee.

Loss: NT$800-1,200, but advantage is time freedom, no business hours constraint. Disadvantage: only about 200 ATMs nationwide, peak times (like airports) often out of cash, fixed denominations of 1,000/5,000/10,000 JPY bills.

When is this suitable?
Urgent needs, no time to visit bank, high time requirement, small amounts (under NT$50,000).

Pitfall reminder:
Don’t wait until departure day to withdraw. During peak times (like holiday airports), cash may be sold out. Prepare 2-3 days in advance for safety.

My Recommended Combo: How to get the most value with NT$200,000-500,000

If you plan to exchange NT$50,000-200,000, a mixed strategy is recommended:

1. Basic needs (NT$10,000-30,000) → Use online exchange for airport pickup, best rate, lowest fee
2. Additional needs or investment → Use foreign currency ATM at low points, diversify risk, withdraw in parts

This way, overall loss can be controlled within NT$500-800, which is 60% cheaper than full over-the-counter exchange.

Is it worthwhile to exchange for JPY now? How to time it

Short-term market analysis

Bank of Japan Governor Ueda Kazuo recently signaled a hawkish stance. Market expects a rate hike to 0.75% at the December 19 meeting (30-year high), with Japanese bond yields hitting 17-year high of 1.93%. This favors short-term JPY appreciation, but also may trigger global arbitrage unwinding, causing 2-5% short-term volatility.

USD/JPY has fallen from the high of 160 at the start of the year to around 154.58, possibly testing 155 short-term, but medium-long term forecast below 150.

Investment advice: stagger in, don’t all-in

Although JPY is one of the three major safe-haven currencies (USD, CHF, JPY), risks of two-way fluctuations remain. Recommendations:

• Travel budget: exchange in parts 2-3 weeks ahead, average cost
• Investment budget: monthly fixed amounts, use dollar-cost averaging to lower costs
• Avoid all-in exchange; keep some flexibility for potential dips back to 155.

After exchanging for new bills — don’t let your money sit idle

After exchanging JPY, if not used immediately, make it work:

JPY fixed deposit (conservative)
Minimum NT$10,000 JPY, annual interest 1.5-1.8%, E.SUN Bank, Taiwan Bank offer online foreign currency accounts. Suitable for those not needing funds within 6 months, seeking stable growth.

JPY insurance policies (medium-term allocation)
Cathay, Fubon life’s foreign currency savings insurance, guaranteed interest 2-3%, lock-in 3-5 years for returns.

JPY ETFs (growth-oriented)
Yuanta 00675U tracks JPY index, annual fee 0.4%, can buy fractional shares via broker app, diversify risk.

JPY forex trading (short-term trading)
Trade USD/JPY or EUR/JPY on forex platforms, 24-hour market, suitable for short-term swings. Note: high leverage risk, requires experience.

Quick FAQs

Q: How much is the difference between cash rate and spot rate?
Cash rate (Cash Rate) is the bank’s buy/sell rate for physical cash, usually 2-3% worse than spot rate. Spot rate (Spot Rate) is the FX market’s T+2 settlement price, close to international market, more favorable. In short: use cash rate for cash, spot rate for transfers.

Q: How much JPY can NT$10,000 buy?
At Taiwan Bank’s December 10 rate of 4.85, NT$10,000 ≈ 48,500 JPY. Using spot rate 4.87, about 48,700 JPY, difference NT$40 (about NT$40). Actual amount depends on daily rate.

Q: What ID is needed for over-the-counter exchange?
Taiwanese: ID card + passport. Foreigners: passport + residence permit. Company: business registration. Pre-booked: notification letter. Under 20: parent’s consent and ID. Large amounts (>NT$100,000) may require source declaration.

Q: What is the ATM withdrawal limit for foreign currency ATMs?
By 2025 new rules, limits vary by bank. CTBC, Taishin: NT$120,000-150,000 per day; E.SUN: NT$50,000. Card issuer also matters. Many banks now lower digital account limits to NT$100,000/day; consider using your own bank card or splitting withdrawals.

Conclusion

Year-end exchange rate volatility and busy travel season call for early planning. JPY is no longer just pocket money for travel but also an asset for hedging and small-scale investment.

Follow the core principles of “batch exchange + don’t leave money idle,” combining online exchange with foreign currency ATMs to save costs and retain flexibility. After acquiring JPY, choose fixed deposit, ETF, or trading based on your timeline to maximize both exchange gains and interest income.

Travel smart, and add a layer of protection during global turbulence—this is the ultimate goal of smart currency exchange.