Yen exchange pitfalls guide: Direct comparison of 4 methods' costs, I’ve calculated it clearly for you

2026-01-04 13:09:04

Straightforwardly, there are 4 ways to exchange TWD to JPY.
As of December 10, 2025, the TWD/JPY exchange rate reaches 4.85, appreciating 8.7% since the beginning of the year.
But how to exchange without banks profiting from the spread? Let’s clarify the latest exchange costs.

4 Methods to Exchange JPY, Cost Differences Are Significant

Many think currency exchange just involves queuing at banks, but choosing the wrong method could cost an extra NT$1,500 on NT$50,000. Below is a detailed analysis based on actual rates:

Method 1: Cash Pickup at Counter — Most Expensive but Most Secure

Bring cash directly to the bank or airport counter to exchange for JPY banknotes. It sounds straightforward, but it’s the most costly—banks sell cash at the “cash selling rate” (1-2% above the spot rate), plus possible handling fees.

For example, Taiwan Bank’s cash selling rate is 0.2060 TWD/JPY (meaning NT$1 = 4.85 JPY). Exchanging NT$50,000 results in a loss of about NT$1,500–2,000.

When to choose this? If unfamiliar with online procedures, need cash urgently (like at the airport), or for small amounts (under NT$3,000).

Bank	Cash Selling Rate (JPY/TWD)	Counter Fee
Taiwan Bank	0.2060	Free
Mega Bank	0.2062	Free
CTBC Bank	0.2065	Free
E.SUN Bank	0.2067	NT$100
Fubon Bank	0.2058	NT$100
Taipei Fubon	0.2069	NT$100

Method 2: Online Currency Exchange Account — Moderate Cost, Suitable for Holders

Use bank app to convert TWD to JPY and deposit into a foreign currency account, using the “spot sell rate” (about 1% cheaper than cash rate). If withdrawing cash, additional handling fees apply (from NT$100+).

Exchanging NT$50,000 results in a loss of NT$500–1,000. And this method is good for phased entry—buy when the rate dips favorably to average out costs.

This JPY can be placed in fixed deposits (annual interest 1.5-1.8%), or invested in JPY ETFs (like Yuanta 00675U), or used for forex trading to profit from volatility.

When to choose this? If you have a foreign currency account, plan long-term holding, or want to buy JPY fixed deposits or investments.

Method 3: Online Currency Exchange + Airport Pickup — Most Cost-Effective Mechanism

No need for a foreign currency account. Fill in currency, amount, and pickup branch (e.g., Taoyuan Airport Taiwan Bank), pay online, then pick up with ID. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay NT$10 via TaiwanPay), with about 0.5% better rates.

Exchanging NT$50,000 costs only NT$300–800, the lowest among the 4 methods. Taoyuan Airport has 14 Taiwan Bank counters, plus 2 open 24 hours.

The downside: requires reservation (at least 1-3 days in advance), and pickup times are limited by bank hours. If you have a planned trip, this is the most economical.

When to choose this? If you have fixed travel dates, no rush, and amounts between NT$50,000–200,000.

Method 4: Foreign Currency ATMs — Most Flexible but Limited

Use a chip-enabled bank card at foreign currency ATMs to withdraw JPY, open 24/7, with only NT$5 fee for interbank transactions. However, locations are limited (~200 units nationwide), and denominations are fixed (only 1,000, 5,000, 10,000 JPY).

Exchanging NT$50,000 results in a loss of NT$800–1,200. Fubon Bank’s foreign currency ATM has a daily limit of NT$150,000 and no exchange fee, making it the best choice for urgent cash needs.

When to choose this? For sudden needs, no time to visit a bank, or near ATM locations. Be aware that during peak hours (airports, tourist spots), cash may run out—avoid last-minute reliance.

Cost Comparison Table: Clear at a Glance

Method	Cost (NT$50,000)	Advantages	Disadvantages	Suitable For
Cash at Counter	NT$1,500–2,000	Safe, full denominations	Spread, limited hours	Small amounts, urgent airport needs
Online Account Exchange	NT$500–1,000	Better rates, phased buying	Need foreign account, withdrawal fees	Forex investing, long-term holding
Online + Airport Pickup	NT$300–800	Lowest cost, reservation easy	Need advance booking, branch fixed	Planned trips, medium amounts
Foreign Currency ATM	NT$800–1,200	24/7, flexible	Limited locations, fixed denominations	Urgent cash, no time for bank visit

Is it a good time to exchange JPY now? Key depends on timing and amount

Brief answer: Yes, but do it in phases.

By end of 2025, JPY/TWD fluctuates around 4.85. Compared to early-year 4.46, appreciating 8.7%, Taiwanese investors have gained significant returns. The BOJ governor Ueda signals a hawkish stance, expecting a rate hike to 0.75% in December (a 30-year high), which usually boosts the yen. Meanwhile, the US easing cycle begins, increasing JPY’s safe-haven appeal.

But this isn’t a signal to exchange everything now. Short-term arbitrage closing could cause 2-5% volatility. USD/JPY dropped from 160 to 154.58, with a short-term rebound to 155 possible. Long-term, expect below 150.

Recommended approach:

For NT$50,000–100,000, use “online exchange + airport pickup” once.
For over NT$200,000, buy in 3-4 tranches during dips via online accounts.
After exchanging, don’t just hold; consider fixed deposits (1.5% annual) or ETFs, rather than doing nothing.

After exchanging JPY, what’s next?

If just traveling, spend it.
If aiming for JPY appreciation, four options:

JPY Fixed Deposit: Most conservative, starting from 10,000 JPY, annual interest 1.5-1.8%, suitable for capital preservation.

JPY Savings Insurance: Medium-term holding, Cathay/Fubon Life offers guaranteed 2-3% interest, with protection.

JPY ETFs (00675U, 00703): Yuanta 00675U tracks JPY index, management fee 0.4%/year, suitable for dollar-cost averaging.

Forex Trading USD/JPY, EUR/JPY: Swing trading, long/short, 24-hour market, high risk/high reward. Use platforms like Mitrade, with zero commission, low spreads, suitable for experienced traders.

Quick FAQs

Q. What’s the difference between cash rate and spot rate?
Cash rate is the bank’s quote for physical cash, with a 1-2% spread due to handling costs.
Spot rate is the FX market’s T+2 settlement price, closer to international rates, more favorable but involves waiting and no cash on hand.

Q. How much JPY for NT$10,000?
Formula: JPY amount = NT$ amount × current rate.
On Dec 10, Taiwan Bank cash rate 4.85: NT$10,000 × 4.85 = 48,500 JPY.
Using spot rate 4.87: NT$10,000 × 4.87 = 48,700 JPY, difference of 200 JPY (~NT$40).

Q. What to bring for counter exchange?
Taiwanese: ID card + passport
Foreigners: Passport + residence permit
Company: Business registration
Reservation: Transaction notice
Under 20: Parental consent + ID

Q. What’s the daily limit for foreign currency ATMs?
As of October 2025, regulations vary:

Bank	Domestic card daily limit	Interbank limit
CTBC	NT$120,000 equivalent	NT$20,000 per transaction
Taishin	NT$150,000 equivalent	NT$20,000 per transaction
E.SUN	NT$150,000 (including debit)	NT$20,000 per transaction

Use your own bank card to avoid interbank fees. Plan ahead during peak hours to prevent cash shortages.

Summary: JPY is no longer just for travel, but an asset allocation option

JPY combines hedging and investment value. Whether for next year’s travel, hedging Taiwan stocks, or earning fixed deposit interest, phased exchange + not just holding cash is key.

Beginners should start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then shift to fixed deposits, ETFs, or swing trading as needed. This way, you can enjoy cheaper travel and add a layer of protection during market volatility.

Remember: choosing the right exchange method can save NT$1,200 on NT$50,000; choosing the right holding method can earn 1.5-3% annual interest. Details determine wealth.

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