## How to Choose Among the Four Channels for Yen Exchange? Latest 2025 Exchange Rates and Cost Comparison

Recently, the TWD to JPY exchange rate has reached around 4.85, prompting many to consider traveling abroad or allocating foreign currency assets. But did you know? Choosing the wrong exchange channel could cost you an extra NT$2,000. Conversely, those familiar with the exchange rates of other major currencies like CHF and USD will find that the cost of exchanging JPY is indeed worth studying separately—after all, JPY is the most common foreign currency for Taiwanese people for travel, fixed deposits, and even as a hedge asset.

## Why Is the Yen So Popular?

From travel, consumption to investment, the yen covers many aspects of daily life.

**Travel and Consumption**: Department stores in Shibuya, Osaka Shinsaibashi, ski resorts in Hokkaido, Okinawa restaurants—most still rely on cash transactions (Japan’s credit card penetration is about 60%), meaning carrying yen cash on-site is still essential. Buyers and Japanese online shopping enthusiasts also need to pay directly in yen.

**Investment Perspective**: More noteworthy. The yen ranks alongside USD and CHF as one of the world's three major safe-haven currencies, due to Japan’s stable economy and disciplined government debt management. When the Russia-Ukraine conflict erupted in 2022, the yen appreciated 8% in a week, successfully buffering global stock declines—this is a concrete demonstration of its "hedge" attribute. For Taiwanese investors, allocating part of their funds into yen is like buying an extra insurance policy.

Additionally, the Bank of Japan has maintained ultra-low interest rates for a long time (recently raised to 0.75%), creating a "funding currency" role—many professional investors borrow low-interest yen to invest in higher-yield assets like USD (the USD/JPY interest rate differential once reached 4%), waiting for market reversal to close positions and arbitrage. This logic also applies to small retail investors, as long as they choose the right exchange method.

## Is Now a Good Time to Exchange Yen? Timing Analysis

As of December 10, 2025, the TWD to JPY rate is about 4.85 (meaning 1 TWD = 4.85 JPY), up more than 8.7% from the beginning of the year at 4.46. This indicates that exchanging yen now can yield exchange gains, but the key is to **operate in batches, not all at once**.

Technically, the yen fluctuates within a wide range. The US interest rate cut cycle is expected to support the yen, and the Bank of Japan is expected to raise rates to a historic high of 0.75% at the December 19 meeting. Japanese bond yields have surged to a 17-year high of 1.93%. The USD/JPY exchange rate has fallen from 160 at the start of the year to around 154.58 now. Short-term rebound to 155 is possible, but medium to long-term forecasts are below 150.

In other words, it’s not the "lowest point" now, but also not expensive—an appropriate entry point, just need to adopt a batch strategy to balance risk.

## Four Main Channels for Taiwanese to Exchange Yen

### 1. Bank Counter Cash Exchange—Most Traditional but Highest Cost

Bring NT$ cash to a bank branch or airport counter to directly receive yen cash. Simple operation, but uses the "cash selling rate" (1-2% worse than the market spot rate), making it more costly.

**Example**: Taiwan Bank’s rate on December 10, 2025, is about 0.2060 NT$/JPY (about 4.85 JPY per NT$). Exchanging NT$50,000 would result in a loss of NT$1,500-2,000.

Comparison of bank rates and fees (as of December 10, 2025):

| Bank | Cash Selling Rate | Counter Service Fee |
|-------|---------------------|---------------------|
| Taiwan Bank | 0.2060 | Free |
| Mega International | 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 |

**Advantages**: Instant cash, full denominations, assistance available.
**Disadvantages**: Exchange rate spread, limited operating hours, need to go in person.
**Suitable for**: Urgent small amounts, airport emergencies, unfamiliar with online methods.

### 2. Online Exchange + Counter or ATM Withdrawal—A Balanced Approach

Log into your bank app or online banking, convert TWD to JPY and deposit into a foreign currency account (using favorable spot rates, usually 1% better than cash rates). When withdrawing cash later at a counter or foreign currency ATM, a fee of NT$100+ applies.

This method is best suited for **those with foreign exchange investment experience and frequent use of foreign currency accounts**, allowing for staggered purchases to average costs. For example, buying in installments when TWD/JPY is below 4.80, for better long-term costs.

Exchanging NT$50,000 might cost NT$500-1,000 in losses.

**Advantages**: Better exchange rates, 24/7 operation, flexible batch entry, suitable for regular investments.
**Disadvantages**: Need to open a foreign currency account first, withdrawal fees apply, interbank transfer fee of NT$5-100.
**Suitable for**: Strategic investors, planned purchases.

### 3. Online Currency Purchase + Designated Branch Pickup—Best Before Travel

No need for a foreign currency account. Fill in exchange details (currency, amount, pickup branch, date) on the bank’s website, transfer funds, then pick up in person with ID and transaction notice. Taiwan Bank’s "Easy Purchase" and Mega International offer this service, with reservation options at airport branches.

Taiwan Bank’s online exchange is fee-free (pay NT$10 via TaiwanPay), with about 0.5% better rates. Taoyuan Airport has 14 pickup points (2 open 24 hours).

Exchanging NT$50,000 might cost NT$300-800 in losses.

**Advantages**: Best rates, usually no fee, airport pickup, time-saving.
**Disadvantages**: Need to book 1-3 days in advance, limited pickup times, branch changes not allowed.
**Suitable for**: Travel planning, convenience-focused travelers.

### 4. Foreign Currency ATM Instant Withdrawal—Fast Option Without In-Person Visit

Use chip-enabled bank card at foreign currency ATMs to withdraw yen cash, supporting 24-hour operation, cross-bank fee of NT$5. Limited locations (~200 nationwide), supporting major currencies.

E.SUN Bank’s foreign currency ATMs allow direct withdrawal from NT$ accounts, with a daily limit of NT$150,000 and **no exchange fee**. However, denominations are fixed (1,000/5,000/10,000 JPY), and cash may run out during peak hours.

Exchanging NT$50,000 might cost NT$800-1,200 in losses.

**Advantages**: Instant withdrawal, 24/7 flexibility, low cross-bank fee.
**Disadvantages**: Limited locations, fixed denominations, cash shortages at peak times.
**Suitable for**: Urgent needs, time-sensitive situations.

## Summary of the Four Channels: Costs and Suitable Scenarios

| Exchange Method | Advantages | Disadvantages | Estimated Cost ( NT$50,000) | Suitable Scenarios |
|------------------|--------------|-----------------|------------------------------|---------------------|
| Counter Cash Exchange | Safe, full denominations, assistance | Spread, limited hours | NT$1,500-2,000 | Small urgent needs, airport emergencies |
| Online Exchange | 24/7, batch, better rates | Need account, withdrawal fee | NT$500-1,000 | Forex investment, regular buying |
| Online Currency Purchase | Best rates, free, airport pickup | Need reservation, time-limited | NT$300-800 | Travel planning, airport pickup |
| Foreign Currency ATM | 24/7, low cross-bank fee | Few locations, fixed denominations | NT$800-1,200 | Time crunch, urgent cash needs |

## After Exchanging Yen—Don’t Let Your Money Sit Idle

Once you have yen, instead of letting it gather dust, consider small, steady yield investments.

**Yen Fixed Deposits** are beginner-friendly. E.SUN and Taiwan Bank allow online setup with a minimum of 10,000 yen, offering 1.5-1.8% annual interest. A 3-month deposit yields about 375-450 yen annually.

**Yen Insurance Policies** are suitable for medium-term holding. Cathay and Fubon offer dollar or yen savings insurance with guaranteed interest rates of 2-3%, combining protection.

**Yen ETFs** (like Yuanta 00675U, 00703) track yen index trends, available via brokerage apps for fractional investing. Ideal for those optimistic about long-term yen appreciation, with an annual management fee of 0.4%.

**Forex Trading**: An advanced option, allowing direct trading of USD/JPY or EUR/JPY on platforms like Mitrade, with high liquidity 24/7. It involves higher volatility risk, so start with small position swings.

## Common Q&A

**Q: What’s the difference between cash rate and spot rate?**
Cash rate is the bank’s buy/sell price for physical bills/coins, offering immediate cash but usually 1-2% worse than the spot rate plus fees. Spot rate is the electronic market price settled T+2, closer to international levels, used for account transfers and import/export without physical cash.

**Q: How much JPY can I get with NT$10,000?**
Using Taiwan Bank’s cash sell rate of 0.2060 NT$/JPY, NT$10,000 ≈ 48,500 JPY. With the spot rate of 0.2059, about 48,570 JPY—difference of only 70 JPY (~NT$14).

**Q: What should I bring for counter exchange?**
Taiwanese: ID card + passport; foreigners: passport + residence permit; companies: business registration. If pre-booked online, bring transaction notice. Under 20 need parent accompaniment. Large amounts (>NT$100,000) may require source declaration.

**Q: What’s the daily withdrawal limit at foreign currency ATMs?**
Post-2025, most banks limit to NT$10,000-15,000 per day. E.SUN allows NT$50,000 per transaction, NT$150,000 per day; other banks vary. Suggest spreading withdrawals or using your bank’s card to avoid cross-bank fees.

## Conclusion: Yen Is No Longer Just Travel "Pocket Money"

The yen has become an asset with both hedging and investment value, beyond just travel expenses. Whether planning for a trip to Japan next year or hedging against TWD depreciation, mastering "batch exchange + quick transfer" can minimize costs and maximize returns.

Beginners are advised to start with "Taiwan Bank online exchange + airport pickup" or "foreign currency ATM," then gradually move into fixed deposits, ETFs, or forex trading based on needs. This way, not only will your trips be more cost-effective, but you’ll also add a layer of asset protection amid global market turbulence.