JPY exchange via four major channels: foreign currency withdrawal vs. bank counter service, the most cost-effective currency exchange strategy in 2025

December 10, 2025, the TWD to JPY exchange rate reaches 4.85, and two major currency exchange waves are fermenting—travelers rushing to prepare for Japan trips, investors eyeing the yen’s potential as a safe-haven asset. But the immediate question is: how, where, to exchange without losing a chunk of money to exchange rate spreads?

This article cuts straight to the point, not only explaining the cost differences among four currency exchange methods but also revealing whether now is a good time to exchange yen.

Why is it worth exchanging yen now?

When it comes to foreign currency exchange, the yen often ranks among the top three. But the reasons for exchanging yen go far beyond simply “wanting to visit Japan.”

Lifestyle aspects: Japan still relies heavily on cash for travel (credit card penetration is only 60%), and activities like shopping, online purchasing of Japanese goods, or working holidays all require yen payments.

Financial aspects: The yen is one of the world’s three major safe-haven currencies (the other two are USD and Swiss Franc). During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while global stock markets fell 10%, clearly demonstrating its safe-haven nature. For investors holding Taiwanese stocks, converting part of their funds into yen is like buying insurance for their portfolio.

Arbitrage opportunities: The Bank of Japan maintains ultra-low interest rates (currently 0.5%), while the Federal Reserve keeps rates high (over 4%), creating a 3-4% interest rate differential. Many institutional investors use the low-interest yen as leverage, investing in higher-yield USD assets, then closing positions when market risks rise to profit from the spread. Although retail investors are smaller in scale, they can also participate in this arbitrage via yen fixed deposits or foreign currency wealth management.

Is it worthwhile to exchange yen now? The answer: stagger your exchanges for the smartest approach

Current exchange rate and trend

The current TWD/JPY rate is about 4.85, up from 4.46 at the start of the year, appreciating by 8.7%. In other words, with the same amount of TWD, you can now buy more yen. But assuming “now is the cheapest” isn’t necessarily correct.

Recent data shows the Bank of Japan Governor Ueda Haruhiko has signaled a hawkish stance, with markets expecting a 0.25 percentage point rate hike at the December 19 meeting to 0.75% (a 30-year high). Japanese bond yields have hit a 17-year high of 1.93%. Meanwhile, the US is entering a rate-cutting cycle. USD/JPY has fallen from a high of 160 at the start of the year to 154.58, with short-term fluctuations around 155, but the medium to long-term trend points below 150.

Investment advice

If your purpose is travel, exchanging now is fine. But for investment allocation, it’s better to stagger your entries for three reasons:

1. Avoid catching the high exchange rate all at once: While the yen is a safe-haven, it also fluctuates bidirectionally. When geopolitical risks increase, it appreciates; when risks ease, it weakens. Staggered operations can average out costs.

2. Hedging arbitrage risk: When the US-Japan interest differential narrows or arbitrage funds exit, the yen may fluctuate 2-5%. Staggering reduces single-transaction risk.

3. Align with fixed deposits or ETF investments: Yen fixed deposits offer annual interest rates of 1.5-1.8% (e.g., E.SUN, Taiwan Bank), and yen ETFs provide steady growth options. Staggered exchange allows flexible allocation.

Complete comparison of four currency exchange channels

Method 1: In-person cash exchange (most traditional)

Bring cash TWD to a bank branch or airport counter for immediate yen cash exchange.

Cost structure: Uses “cash selling rate,” which is 1-2% worse than the spot rate. For example, Taiwan Bank’s December 10 rate is 0.2060 TWD/JPY (1 TWD = 4.85 JPY), while the spot rate is about 0.2064 TWD/JPY. Exchanging 50,000 TWD this way results in an extra loss of about 1,500-2,000 TWD. Some banks also charge an additional 100-200 TWD handling fee.

Pros: Simple operation, immediate cash receipt, denominations available (1,000/5,000/10,000 JPY).

Cons: Limited by bank hours (weekday 9:00-15:30), large spread.

Suitable for: Emergency needs, small amounts, unfamiliar with online methods.

Method 2: Online exchange + ATM cash withdrawal (balanced approach)

Use bank app or online banking to convert TWD to JPY in a foreign currency account at the “spot selling rate.” When cash is needed, go to a counter or foreign currency ATM to withdraw, incurring a withdrawal spread fee (~100 TWD).

Cost structure: Spot rate is about 1% better than cash rate, but withdrawal incurs fees. For 50,000 TWD, estimated loss is 500-1,000 TWD.

Pros: 24/7 operation, can buy in installments to average costs, better exchange rate, suitable for investors observing trends for low-entry.

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

Suitable for: Experienced forex traders, long-term yen holders, or those investing in yen ETFs/fixed deposits.

Method 3: Online currency purchase reservation for airport pickup (most convenient)

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After transfer, bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” online currency purchase service is well-known, offering 0.5% rate discount, and paying via Taiwan Pay costs only 10 TWD handling fee.

Key feature: You can reserve pickup at Taoyuan Airport’s Taiwan Bank branches (14 branches, 2 open 24 hours). Complete online the night before departure, then pick up cash at the airport in the morning, saving queue time.

Cost structure: About 300-800 TWD loss for 50,000 TWD exchanged, relatively low.

Pros: Favorable rate, low or no handling fee, airport pickup (great for travelers), reservation guarantees sufficient cash.

Cons: Need to reserve 1-3 days in advance, pickup time limited by bank hours, branches cannot be changed.

Suitable for: Planned travelers, those wanting to prepare everything before departure.

Method 4: Foreign currency ATM withdrawal (most flexible)

Use chip-enabled bank card at foreign currency ATMs to withdraw yen cash 24/7. Interbank withdrawal fee is only 5 TWD (deducted from TWD account). For example, SinoPac’s foreign currency ATM allows a daily limit of 150,000 TWD equivalent, with no exchange fee.

Advantages: Anytime, anywhere—no bank hours restriction. ATMs are available at airports, MRT stations, department stores, especially useful for last-minute exchange needs. Many banks support direct deduction from TWD accounts, avoiding pre-purchasing foreign currency.

Limitations: About 200 ATMs nationwide, not as widespread as regular ATMs. Limited currencies (mainly USD, JPY, RMB). Fixed denominations (1,000/5,000/10,000 JPY). During peak times (airports, weekends), cash may run out.

Cost structure: Interbank fee 5 TWD, free at own bank, estimated loss 800-1,200 TWD for 50,000 TWD.

Withdrawal limits (2025 new rules):

• Own bank card: single limit 50,000-120,000 TWD equivalent, daily 150,000 TWD equivalent
• Other bank card: single 20,000 TWD, daily per bank rules
• RMB: single/ daily limit not exceeding 20,000 RMB

Pros: 24/7 access, instant cash, lowest cross-bank fee, no bank hours restriction.

Cons: Limited locations, fixed denominations, peak shortages, may not withdraw large amounts.

Suitable for: Urgent needs, no time for counter visits, night or holiday withdrawals.

Summary of four exchange methods

Depending on your budget and timing, for those with a budget of @E5@ to , we especially recommend a hybrid approach: use “online currency purchase + airport pickup” for large cash needs (saving handling fees), and “ATM withdrawal” for small, last-minute cash needs (24/7 convenience).

What to do after exchanging yen?

Once you have yen, don’t let the money sit idle without earning interest. Based on your risk appetite, consider:

Conservative: Yen fixed deposit, annual interest 1.5-1.8% (E.SUN, Taiwan Bank), minimum 10,000 yen.

Steady: Yen savings insurance, guaranteed interest 2-3%, medium-term holding (Cathay, Fubon Life).

Growth: Yen ETFs (e.g., Yuanta 00675U, 00703), tracking yen-related indices, low management fee (0.4%), can be bought as fractional shares or via dollar-cost averaging in brokerage apps.

Advanced: Forex trading platforms for USD/JPY or EUR/JPY, capturing exchange rate fluctuations, long and short positions, 24/7 trading, but with higher risk.

FAQs

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

Cash exchange rate (cash selling rate) is the rate banks set for physical cash transactions, usually 1-2% worse than the spot rate. It involves immediate cash exchange but at higher cost. The spot rate is the international market price settled T+2, used for electronic transfers and foreign currency accounts, closer to real-time market prices.

Q: How much yen can I get with 10,000 TWD?

Using Taiwan Bank’s December 10 cash selling rate of 0.2060 TWD/JPY, 10,000 TWD ≈ 48,500 JPY. Using the spot rate (~0.2064), about 48,700 JPY. The difference is roughly 200 JPY (~40 TWD).

Q: What ID do I need to exchange foreign currency?

Taiwanese nationals: ID card + passport. Foreigners: passport + residence permit. If pre-ordered online, bring transaction notice. Under 20s need parental consent. Large amounts (>100,000 TWD) may require declaration of source of funds.

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

Post-2025 rules vary by bank. For own bank cards, daily limit often 120,000-150,000 TWD equivalent; for others, usually lower (around 20,000-50,000 TWD). RMB limits are typically 20,000 RMB per transaction/day.

Q: What if foreign currency ATMs run out of cash?

Peak times (airports, weekends, holidays) are prone to shortages. Plan ahead. If ATMs are out, consider online currency purchase for in-branch pickup (more reliable).

Final advice

Yen has evolved from a pocket money for travel to an asset with hedging and investment value.

Travelers: exchanging now is very cost-effective, with “online currency purchase + airport pickup” being the easiest.

Investors: although the current rate has room to appreciate, staggered entry is recommended. Convert yen into fixed deposits or ETFs to keep assets growing. Also, leverage the flexibility of “foreign currency ATM withdrawal” to buy in parts based on exchange rate movements, spreading risk.

In any scenario, mastering the two principles of “phased exchange” and “not letting your money sit idle” will help minimize costs and maximize returns.