The most cost-effective way to exchange TWD to JPY! Understand the 4 major banks' JPY exchange channels in one go

Is it cost-effective to exchange for Japanese Yen now? Check out this data

As of December 10, 2025, the TWD to JPY exchange rate has reached 4.85, meaning 1 TWD can be exchanged for 4.85 JPY. Compared to the beginning of the year at 4.46, the yen has appreciated about 8.7% over the year. For those wanting to exchange for yen, it’s actually quite advantageous.

According to market statistics, Taiwanese demand for yen exchange has increased by 25% in the second half of the year. There are two main reasons: first, the recovery of international travel; second, investors beginning to allocate assets for hedging. In the short term, the Bank of Japan Governor Ueda Kazuo recently signaled a hawkish stance, with market expectations of a rate hike to 0.75% on December 19 (a 30-year high), which will further support the yen’s strength.

But while it’s advantageous, the key is choosing the right currency exchange method. Exchanging 50,000 TWD through different channels can cost up to over 1,000 yuan difference, enough to buy a month’s worth of bubble tea.

Why exchange for yen? It’s not just for travel

Many think exchanging yen is only for traveling to Japan. In fact, the value of the yen goes far beyond that.

For travel and daily life, most Japanese restaurants, drugstores, and convenience stores only accept cash (credit card penetration is about 60%), and trips to Tokyo, Osaka, Hokkaido skiing, or Okinawa resorts all require yen. People who buy Japanese products online or shop for clothes and anime merchandise on Japanese websites often need to pay directly in yen. Those planning to stay long-term or work in Japan usually exchange money in advance to avoid exchange rate fluctuations increasing costs.

From an investment perspective, the yen is not just for travel. It is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), backed by Japan’s stable economy and prudent government debt management. Whenever global markets are turbulent, funds flow into the yen for safety—during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, successfully buffering a 10% stock market decline. For Taiwanese investors, exchanging for yen adds a layer of protection against risks in the Taiwan stock market.

Another investment angle is interest rate arbitrage. Japan maintains ultra-low interest rates (around 0.5%), allowing investors to borrow yen at low cost and invest in higher-yield USD assets (the USD/JPY interest rate differential is about 4.0%). When risks increase, they can close the position by buying back yen, profiting from the exchange rate difference.

Four ways to exchange yen at banks— which one is really the cheapest?

Many people habitually go to bank counters to exchange currency, but this isn’t necessarily the most cost-effective method. Using actual rates from December 2025, here are the main bank options in Taiwan for exchanging yen.

Method 1: Cash exchange at counter — convenient but expensive

Bring cash TWD to a bank or airport counter to exchange for yen cash. It’s simple, but banks use the “cash selling rate” (about 1-2% worse than the spot rate), plus some banks charge handling fees, making the overall cost higher.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is about 0.2060 TWD per yen (1 TWD = 4.85 yen). Exchanging 50,000 TWD results in a loss of about 1,500–2,000 TWD. E.SUN Bank’s rate is slightly better at 0.2058, but charges a 100 TWD fee per transaction; E.SUN Bank charges 200 TWD per transaction, and Cathay United Bank even more.

Advantages: Safe, reliable, full denominations available (1,000, 5,000, 10,000 yen), staff guidance on-site.

Disadvantages: Poorer exchange rates, limited operating hours (weekday 9:00-15:30), possible additional fees.

Suitable for: Those unfamiliar with online methods or needing small amounts for urgent airport use.

Major banks’ cash selling rates and fees (2025/12/10)

Method 2: Online transfer deposit, then withdraw cash

Use banking app or online banking to convert TWD into yen and deposit into a foreign currency account. This uses the “spot selling rate,” which is about 1% better than cash selling. If you want to withdraw cash, you can do so at counters or via foreign currency ATMs, but there will be exchange rate spread and handling fees (minimum 100 TWD).

For example, after currency exchange via E.SUN Bank app, withdrawing yen cash incurs fees equal to the difference between spot and cash rates. Exchanging 50,000 TWD costs about 500–1,000 TWD, saving quite a bit compared to counter exchange.

This method allows you to observe exchange rate trends, and buy in batches when the rate is low (e.g., TWD/JPY below 4.80), averaging your cost over time.

Advantages: 24/7 operation, better rates, suitable for gradual accumulation.

Disadvantages: Need to open a foreign currency account first, withdrawal fees apply.

Suitable for: Those experienced with forex, using foreign currency accounts regularly, and possibly investing in yen deposits (current annual interest 1.5-1.8%).

Method 3: Online currency exchange reservation, pick-up at airport

A new, convenient method that doesn’t require a foreign currency account. Fill in the amount, branch, and date online, pay, then bring ID and transaction notice to pick up at designated branch. Taiwan Bank and Mega International offer this, with some branches at airports.

Taiwan Bank’s “Easy Purchase” online currency exchange even waives handling fees (pay only 10 TWD via Taiwan Pay), with about 0.5% better rates. Exchanging 50,000 TWD results in a loss of only 300–800 TWD. Taoyuan Airport has 14 Taiwan Bank outlets, two of which are open 24 hours.

Advantages: Better rates, often no fees, airport pick-up available.

Disadvantages: Need to book 1–3 days in advance, limited to operating hours, branches cannot be changed.

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

Method 4: Foreign currency ATM withdrawal — most flexible

Use a chips-enabled card at foreign currency ATMs to withdraw yen cash, available 24 hours. When deducting from your TWD account, only a 5 TWD interbank fee applies (or free with your own bank card). The daily withdrawal limit at E.SUN Bank’s foreign currency ATMs is 150,000 TWD, with no exchange fee.

Exchanging 50,000 TWD costs about 800–1,200 TWD, making it the most cost-effective among the four methods. The only downside is limited ATM locations (about 200 nationwide), fixed denominations (1,000, 5,000, 10,000 yen), and potential cash shortages during peak times.

Advantages: Instant withdrawal, high flexibility, lowest fees.

Disadvantages: Limited ATM locations, fixed denominations, possible cash shortages at peak times.

Suitable for: Those who don’t have time to visit banks or need emergency cash.

Cost comparison of the 4 currency exchange methods

Based on December 2025 data, using 50,000 TWD as an example:

Conclusion: For budgets between 50,000–200,000 TWD, a recommended approach is a combination of “online currency exchange + ATM withdrawal,” balancing favorable rates with flexibility.

Key concepts to know before exchanging for yen

Cash rate vs spot rate difference?

The cash rate is the bank’s buy/sell rate for physical bills, used for travel exchange or on-site transactions. It allows immediate cash in hand but is usually 1–2% worse than the spot rate, plus handling fees, making it more expensive.

The spot rate is the foreign exchange market rate settled within T+2, used for electronic transfers, interbank settlements, or foreign currency accounts. It’s closer to international market prices and offers better rates but involves waiting for settlement.

How much yen can I get for 10,000 TWD?

Using the formula: Yen amount = TWD amount × current rate.

At Taiwan Bank’s December 10, 2025, cash selling rate (~4.85), 10,000 TWD ≈ 48,500 yen. Using the spot rate (~4.87), it’s about 48,700 yen, a difference of roughly 200 yen (about TWD 40).

What to bring for counter exchange?

Taiwanese nationals: ID card + passport. Foreigners: passport + residence permit. If exchanging under a company name, bring business registration. For online pre-booking, also bring transaction notice.

Important: minors under 20 need a parent’s consent and signature; large amounts over 100,000 TWD may require source of funds declaration.

Are there withdrawal limits at foreign currency ATMs?

As of October 2025, regulations vary by bank:

Tip: Spread out withdrawals or use your own bank card to avoid cross-bank fees. During peak times (like at airports), cash may run out quickly, so plan ahead.

After exchanging yen, don’t let it sit idle without earning returns

Exchanging yen is not the end. If you’re investing, consider ways to let your yen appreciate further.

Yen deposits are the most stable. Open a foreign currency account at E.SUN or Taiwan Bank and deposit online, starting from 10,000 yen, with annual interest rates of 1.5–1.8%.

Yen insurance policies are suitable for medium-term holding. Cathay and Fubon Life offer savings insurance with guaranteed interest rates of 2–3%.

Yen ETFs (like 00675U, 00703) are growth-oriented options. You can buy fractional shares via brokerage apps, suitable for regular investment.

Forex trading involves directly trading USD/JPY or EUR/JPY on forex platforms, suitable for experienced investors. Yen is a safe-haven but also volatile. Rate hikes by BOJ are positive for yen, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) can weaken it. For investment, yen ETFs (annual fee 0.4%) diversify risk; for short-term trading, forex offers both long and short positions, 24-hour trading, and low capital requirements.

Final reminder

To sum up: Yen is no longer just pocket money for travel but an asset with hedging and investment value.

When exchanging at banks, remember the principles of “gradual exchange + don’t leave it idle” to minimize costs and maximize gains. Beginners should start with “Taiwan Bank online exchange + airport pick-up” or “foreign currency ATM,” then transfer yen into deposits, ETFs, or try small-scale trading based on needs. This way, you can enjoy cost-effective travel and also add a layer of protection during global market turbulence.

With TWD/JPY at 4.85, it’s relatively low. As BOJ rate hike expectations heat up, gradual exchange and strategic deployment are what smart investors should do.