New Opportunities from the 2025 TWD Depreciation: JPY Appreciates by 8.7%, Now is a Great Time to Exchange for Yen

The Japanese Yen Exchange Rate Hits Yearly High, Showing Yen’s Potential for Appreciation Against the US Dollar

As of December 10, 2025, the TWD/JPY exchange rate reached a high of 4.85, appreciating about 8.7% from the beginning of the year at 4.46. An interesting comparison is the changing cost of exchanging 1 USD to JPY—this reflects the Yen’s strong position in the global foreign exchange market. Many ask: Is it a good time to exchange for Yen now? The answer is yes, but only if you choose the right method.

Why Is Now a Good Time to Exchange for Yen?

The Bank of Japan (BOJ) just signaled a rate hike, with Governor Ueda Kazuo’s hawkish comments pushing expectations of a 0.25 bps increase to 0.75% at the December 19 meeting (a 30-year high). Meanwhile, Japanese government bond yields have hit a 17-year high of 1.93%, and USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now.

This is not just about exchange rate fluctuations; it reflects the Yen’s core value as one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). During market turbulence, funds flow into Yen for safety—during the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week, effectively buffering stock market declines. For Taiwanese investors, exchanging for Yen under the pressure of TWD depreciation can lock in FX gains and hedge against Taiwan stock risks.

In the second half of the year, Taiwan’s foreign exchange demand increased by 25%, mainly driven by tourism recovery and risk hedging, indicating a shift in market perception.

4 Ways to Exchange for Yen, Cost Differences Over NT$2,000

Many think exchanging Yen at banks is straightforward, but choosing the wrong method could cost NT$1,500–2,000 on NT$50,000. Based on the latest rates, we analyze the costs of four mainstream methods.

Method 1: Bank Counter Cash Exchange (Most Traditional, Highest Cost)

Carry NT$ cash to a bank branch or airport counter to exchange for Yen cash. This is the safest method but uses the “cash selling rate” (about 1-2% worse than the spot rate), plus fixed handling fees from some banks, making it more expensive overall.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is about NT$0.2060 per Yen (roughly NT$4.85 per Yen). Compared to RMB or USD rates, this is less cost-effective.

Cost Estimate (NT$50,000): Loss of NT$1,500–2,000
Suitable for: Urgent airport needs, travelers unfamiliar with online transactions

Comparison of cash selling rates on December 10, 2025:

Method 2: Online FX Conversion + Foreign Currency Account (Investment Type)

Use online banking or app to convert NT$ to Yen, enjoying the “spot sell rate” (about 1% better than cash selling rate). If cash withdrawal is needed, do so at counters or foreign ATM, incurring additional FX handling fees (from NT$100).

This method’s advantage is the ability to buy in batches, averaging costs—especially suitable for investors monitoring exchange rate trends. For example, buying in parts when TWD/JPY is below 4.80 can lower overall holding costs.

Cost Estimate (NT$50,000): Loss of NT$500–1,000
Suitable for: Experienced FX users, long-term holders, or those investing in Yen deposits (annual interest 1.5-1.8%)

Method 3: Online FX Purchase + Airport Pickup (Most Recommended)

No need for a foreign currency account—simply fill in currency, amount, pickup branch, and date on the bank’s official website. Taiwan Bank’s “Easy Purchase” online FX purchase is fee-free (pay NT$10 via TaiwanPay), with about 0.5% better exchange rate.

This is the most efficient way before traveling, especially at Taoyuan Airport, which has 14 Taiwan Bank branches (2 open 24 hours) for direct cash pickup. The downside is that reservations are required at least 1-3 days in advance, and pickup branches cannot be changed afterward.

Cost Estimate (NT$50,000): Loss of NT$300–800
Suitable for: Planned travelers who want to withdraw cash directly at the airport

Method 4: Foreign Currency ATM Withdrawal (24/7 Flexibility)

Use a chip-enabled financial card at foreign currency ATMs to withdraw Yen cash, supporting 24-hour operation and interbank transactions (interbank fee NT$5). E.SUN Bank’s foreign currency ATMs allow NT$150,000 per day withdrawal from NT$ accounts, with no FX handling fee.

Disadvantages include limited locations (~200 nationwide), fixed denominations (only NT$1,000/5,000/10,000 Yen), and potential cash shortages during peak times. Avoid waiting until the last minute to withdraw.

Cost Estimate (NT$50,000): Loss of NT$800–1,200
Suitable for: Those with no time to visit banks or needing urgent cash

Quick Comparison Table of 4 Methods

After Exchanging Yen, Don’t Let Your Money Sit Idle

If you’ve already exchanged Yen, your next choices determine your gains. Here are four common strategies:

1. Yen Fixed Deposit: Most stable, open online via E.SUN/Taiwan Bank with foreign currency accounts, starting from NT$10,000 Yen, annual interest 1.5-1.8%

2. Yen Insurance Policy: Medium-term holding, Cathay/Fubon life savings insurance, guaranteed interest rate 2-3%

3. Yen ETFs (00675U, 00703): Growth-oriented, e.g., Yuanta 00675U tracking Yen index, can buy fractional shares via broker app, suitable for dollar-cost averaging, management fee 0.4% annually

4. USD/JPY Short-term Trading: Direct FX trading to capture rate fluctuations, suitable for experienced investors

While Yen is a strong hedge, it also faces two-way volatility risks. Global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) could weaken Yen. For investment purposes, diversifying with Yen ETFs can reduce concentration risk, suitable for long-term holding.

Common FAQs on Exchanging Yen in Taiwan

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

Cash rate applies to physical cash transactions, with the advantage of immediate delivery but usually 1-2% worse than the spot rate. Spot rate is used for electronic transfers, offering more favorable rates (close to international market prices) but requires T+2 settlement.

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

Based on Taiwan Bank’s rate on December 10, 2025 (cash sell about NT$4.85), NT$10,000 can buy about 48,500 Yen. Using the spot rate (about NT$4.87), it’s roughly 48,700 Yen—a difference of about 200 Yen.

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

Taiwanese citizens need ID + passport; foreigners need passport + residence permit. If pre-booked online, also bring transaction notification. Minors under 20 require a parent; large exchanges over NT$100,000 may require source of funds declaration.

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

Post-2025 regulations vary by bank. CTBC supports NT$120,000/day equivalent, Taishin NT$150,000/day, E.SUN NT$50,000 per transaction / NT$150,000 per day. Check with your issuing bank for latest limits.

Conclusion

The Yen is no longer just pocket money for travel but an asset with hedging and small investment value. Whether you’re planning to visit Japan next year or hedging against TWD depreciation by moving funds into Yen, the key is mastering the two principles: “Batch exchange” and “Don’t leave money sitting idle after exchange.”

Start with “Taiwan Bank online FX + airport pickup” or “Foreign currency ATM,” then transition into deposits, ETFs, or short-term trading based on your needs. This way, you can enjoy more cost-effective travel and add a layer of protection during global market turbulence.