Japanese Yen Exchange Guide: Cost Analysis of 4 Methods and the Optimal Choice

In the wave of Taiwan dollar depreciation, the Japanese Yen becomes the new safe haven

December 2025, the TWD/JPY exchange rate reaches 4.85. What investment opportunities are hidden behind this rate? Many people still hold the old mindset of “exchanging cash at the bank,” unaware that choosing the wrong exchange channel can cost you an extra NT$1,000-2,000. This article provides an in-depth analysis of Taiwan’s four major currency exchange methods, along with the latest cost comparisons, to help you find the most cost-effective way to exchange currency.

Why is it worth starting to allocate in JPY now?

The changing role of safe-haven assets

The Japanese Yen has long been ranked among the world’s three major safe-haven currencies (USD, CHF, JPY), especially during geopolitical tensions or stock market volatility. For example, during the Russia-Ukraine conflict in 2022, the Yen appreciated by 8% within a week, successfully buffering the 10% decline in global stock markets. For Taiwanese investors, appropriately allocating in Yen is not just for travel but also a strategic tool to hedge against Taiwan stock market fluctuations.

Exchange rate trend analysis

From 4.46 at the beginning of the year to 4.85 now, the Yen has appreciated approximately 8.7%, reflecting several key factors:

Expectations of Bank of Japan interest rate hikes — Recent hawkish remarks by Governor Ueda have pushed market expectations of rate hikes to 80%, with a December 19 meeting expected to raise rates by 0.25 basis points to 0.75% (a 30-year high), and Japanese government bond yields reaching a 17-year high of 1.93%.

Narrowing US-Japan interest rate differential — The US is entering a rate cut cycle while Japan is starting to raise rates, causing the interest rate gap to shrink from 4.0%. Yen arbitrage trading risks are rising, potentially triggering a short-term wave of closing positions, causing volatility of 2-5%.

Increased currency exchange demand in the second half of the year by 25% — Driven by travel recovery and safe-haven allocation, market activity has surged significantly.

USD/JPY has fallen from a high of 160 at the start of the year to around 154.58. In the short term, it may retrace to 155, but medium to long-term forecasts suggest it will be below 150, indicating opportunities for phased entry.

Overview of Taiwan’s four major JPY exchange methods

Method 1: Bank counter cash exchange

Process — Bring TWD cash to a bank branch or airport counter to exchange for Yen cash.

Exchange rate characteristics — Uses the “cash selling rate,” which is about 1-2% worse than the spot rate. For example, Taiwan Bank’s cash selling rate on December 10, 2025, was 0.2060 TWD/JPY (1 TWD = 4.85 JPY).

Hidden costs — Some banks charge an additional fixed fee of NT$100-200, making this the most expensive overall.

Suitable for — Travelers unfamiliar with online operations or needing small amounts for emergency (e.g., sudden cash shortage at the airport).

Estimated cost for NT$50,000 exchange — Loss of about NT$1,500-2,000.

Real-time bank rates comparison (2025/12/10):

• Taiwan Bank: 0.2060 TWD/JPY, no fee
• Mega International Bank: 0.2062 TWD/JPY, no fee
• CTBC Bank: 0.2065 TWD/JPY, no fee
• E.SUN Bank: 0.2067 TWD/JPY, NT$100 fee
• Fubon Bank: 0.2058 TWD/JPY, NT$100 fee

Method 2: Online banking exchange + counter or ATM withdrawal

Process — Use bank app or online banking to convert TWD into JPY and deposit into a foreign currency account, enjoying the “spot selling rate” (about 1% better than cash selling rate). When cash is needed, withdraw at the counter or foreign currency ATM.

Cost structure — Better exchange rate, but additional fees for cash withdrawal (from NT$100), cross-bank withdrawals add NT$5-100.

Suitable for — Those with foreign exchange investment experience, observing exchange rate trends for phased entry. Can buy gradually when TWD/JPY is below 4.80 to lower average cost, maintaining flexibility.

Additional opportunity — The Yen received can be directly transferred into a Yen fixed deposit (current annual interest 1.5-1.8%). For example, E.SUN Bank offers a minimum of NT$10,000 deposit, earning interest while holding.

Estimated cost for NT$50,000 exchange — Loss of NT$500-1,000.

Method 3: Online currency exchange + airport pickup

Process — No need to open a foreign currency account in advance. Fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, pick up with ID and transaction notice.

Bank advantages — Taiwan Bank’s “Easy Purchase” platform and Mega Bank offer this service, with appointment options at various airport branches, including 14 Taiwan Bank counters at Taoyuan Airport (2 open 24 hours).

Cost optimization — Taiwan Bank’s Easy Purchase online exchange is fee-free (pay NT$10 via TaiwanPay), with about 0.5% better rate.

Suitable for — Travelers planning 1-3 days before departure, booking in advance, and picking up cash directly at the airport, avoiding carrying large amounts of TWD and sudden rate fluctuations. Ideal for planned trips.

Estimated cost for NT$50,000 exchange — Loss of NT$300-800.

Method 4: 24-hour foreign currency ATM withdrawal

Process — Use a chip-enabled bank card to withdraw Yen cash at foreign currency ATMs, available year-round, across time zones.

Cost advantage — Deduct directly from TWD account, cross-bank fee only NT$5, no additional exchange fee, relatively cheap.

Limitations — About 200 ATMs nationwide, limited to major currencies (JPY, USD, etc.), with fixed denominations (1,000, 5,000, 10,000 JPY). Daily limit for Fubon Bank’s foreign currency ATM is NT$150,000.

Risk reminder — During peak times (e.g., airports), cash may run out, especially during holiday seasons. It’s recommended to plan 2-3 days in advance rather than waiting until the last minute.

Suitable for — Those with no time to visit banks during business hours or needing urgent cash. Not recommended as the main method due to limited locations and denominations.

Estimated cost for NT$50,000 exchange — Loss of NT$800-1,200.

Summary table of four exchange methods

Best for beginners: If your budget is NT$50,000-200,000, a combination of “Online exchange + airport pickup” or “Online banking + foreign ATM” can minimize costs.

Asset allocation suggestions after currency exchange

After exchanging for Yen, don’t let your funds sit idle without interest. Choose based on your risk preference:

Conservative — Yen fixed deposit
Open a foreign currency account, transfer Yen online, with an annual interest rate of 1.5-1.8%, minimum NT$10,000 deposit. Suitable for short-term travel funds or conservative investors.

Medium-term holding — Yen insurance
Buy Yen savings insurance from Cathay or Fubon Life, with guaranteed interest rates of 2-3%. Upon maturity, automatically receive or transfer back. Suitable for those with insurance planning needs.

Growth-oriented — Yen ETFs
For example, Yuanta 00675U (Yen index tracking), can be bought in fractional shares via brokerage apps for dollar-cost averaging. Management fee 0.4% annually, diversifies exchange rate risk, suitable for those optimistic about Yen appreciation in the medium term.

Advanced — Forex swing trading
Trade USD/JPY or EUR/JPY directly on forex platforms. Benefits include two-way trading, 24-hour operation, and small capital requirements. Suitable for experienced traders with swing trading skills. Be aware of risks; short-term arbitrage may cause 2-5% volatility.

Frequently Asked Questions

Q. What’s the difference between cash rate and spot rate?
Cash rate (Cash Rate) is used for physical cash buying/selling, suitable for travel exchange, settled immediately but usually 1-2% worse than the market. Spot rate (Spot Rate) is used for electronic transfers, settled within two business days (T+2), closer to international market prices, but involves waiting. Choosing spot rate can save NT$40-200 in fees.

Q. How much Yen can I get with NT$10,000?
Using Taiwan Bank’s cash selling rate of 0.2060 TWD/JPY, NT$10,000 can exchange for about 48,500 Yen. Using the spot selling rate of 0.2055 TWD/JPY, it’s about 48,700 Yen, a difference of roughly 200 Yen (about NT$40). Actual amounts vary with bank rates.

Q. What ID do I need for counter exchange?
Taiwanese: ID card + passport; foreigners: passport + residence permit. For online appointment pickup, bring transaction notice. Under 20 requires parental accompaniment. Large exchanges over NT$100,000 may require source of funds declaration.

Q. What’s the limit for foreign currency ATM withdrawal?
Different banks have different limits (new rules from October 2025):

• CTBC Bank: NT$120,000 per day for own card, NT$20,000 per transaction for other banks
• Taishin Bank: NT$150,000 per day, depends on issuing bank for others
• E.SUN Bank: NT$50,000 per transaction (50 banknotes), NT$150,000 per day

Use your own bank card to avoid cross-bank fees or withdraw in multiple transactions to stay within limits.

Conclusion

The Yen has evolved from a simple “travel pocket money” to an asset with hedging and investment value. Follow the dual principles of “phased exchange + immediate transfer into fixed deposits or ETFs” to reduce exchange rate risk and keep idle funds growing.

For beginners, starting with “Taiwan Bank online exchange + airport pickup” is the safest. Adjust costs with “online phased exchange” based on rate trends, then transfer Yen into fixed deposits or ETFs for long-term holding. This approach allows you to enjoy cost-effective travel and adds a layer of asset protection during global market turbulence. Given the current relatively weak TWD environment, now is a good time to allocate in Yen.