Japanese Yen Exchange Guide: Cost Comparison of 4 Major Channels, Choose the Right Method to Save Thousands

Current Exchange Rate Situation and Timing for Currency Exchange

This year, the Taiwanese dollar against the Japanese yen has appreciated to 4.85, an 8.7% increase from 4.46 at the beginning of the year. Travel demand to Japan and interest in yen investments have also warmed up accordingly. Market observations indicate that Taiwan’s currency exchange demand will grow by 25% in the second half of the year, mainly driven by the recovery of outbound travel and asset hedging strategies.

So, is it a good time to exchange for yen now? The answer is “yes, but in installments.” As one of the world’s three major safe-haven currencies (along with the US dollar and Swiss franc), the yen has defensive value during market volatility. Currently, the Bank of Japan’s rate hike expectations are heating up (Governor Ueda Kazuo’s hawkish comments have pushed expectations to 80%, with the December 19 meeting expected to raise the rate to a new high of 0.75%). USD/JPY has fallen from 160 at the start of the year to 154.58, with a short-term rebound possibly to 155, but medium to long-term levels are expected below 150. It is recommended to enter in stages to avoid exchange rate risks.

4 Ways for Taiwanese People to Exchange for Yen

Option 1: Bank Counter Cash Exchange

The most traditional method—bring cash in TWD to a bank or airport counter to exchange directly for yen cash. Looks simple, but actually the most costly, as it uses the “cash selling rate” (1-2% worse than the spot rate), plus handling fees, with total loss reaching NT$1,500-2,000 (based on NT$50,000).

For example, as of December 10, 2025, Taiwan Bank’s selling rate is 0.2060 TWD/JPY (meaning NT$1 exchanges for 4.85 yen). Some banks charge fixed handling fees.

Bank Cash Exchange Fees Comparison (as of December 10, 2025)

Suitable for: Small, urgent needs (e.g., at the airport), unfamiliar with online operations.

Warning: Needs to operate during bank hours (weekday 9:00-15:30), and exchange rate is most unfavorable.

Option 2: Online Banking Electronic Exchange + Cash Withdrawal

Use bank app or online banking to convert TWD to yen at the “spot selling rate” and deposit into a foreign currency account (about 1% better than cash). If physical cash is needed, withdraw at counters or foreign currency ATMs, paying an additional exchange margin fee (starting around NT$100).

Total cost ranges from NT$500-1,000, suitable for those experienced in forex operations or long-term holders. The advantage is observing exchange rate trends, allowing staged purchases at low points (e.g., below 4.80), averaging costs.

Intended for: Those planning yen fixed deposits (annual interest 1.5-1.8%) or yen ETF investments.

Digital account limitations: Some digital accounts have restricted foreign currency exchange functions; third-tier accounts may have ATM withdrawal limits as low as NT$100,000 per day (many banks adjusted after October 2025). Confirm account level and limits before opening.

Option 3: Online Currency Exchange Reservation + Airport Pickup (Most Smart Method)

No need for a foreign currency account—simply reserve online via bank website, select currency, amount, pickup branch (can specify airport), and date. After remittance, bring ID + transaction notification to pick up in person. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service.

Most cost-effective: Taiwan Bank’s online exchange is fee-free (using Taiwan Pay costs NT$10), with about 0.5% favorable exchange rate margin, estimated cost NT$300-800.

Airport convenience: Taoyuan Airport has 14 Taiwan Bank outlets (2 open 24 hours), allowing you to pick up cash before departure without extra bank visits.

Reservation lead time: At least 1-3 days; pickup time is limited by bank hours. Once a branch is chosen, it cannot be changed.

Best for: Planned travelers, those with ample time before departure.

Option 4: Foreign Currency ATM Instant Withdrawal

Use a chip-enabled financial card to withdraw yen cash at foreign currency ATMs, operational 24/7. Cross-bank withdrawals cost only NT$5 fee (directly deducted from TWD account). E.SUN Bank’s foreign currency ATM limit is NT$150,000 equivalent per day, with no exchange fee.

Highest flexibility: Can decide spontaneously and get cash on the same day. However, only about 200 ATMs nationwide, with fixed denominations (1,000/5,000/10,000 yen). During peak times (holidays, airports), cash may run out, not suitable for urgent last-minute needs.

Estimated cost: NT$800-1,200 (for NT$50,000).

Risk warning: Japan’s ATM withdrawal services will be adjusted by end of 2025 to use international cards (Mastercard/Cirrus).

Quick Comparison Table of 4 Methods

Investment Planning Before and After Currency Exchange

After exchanging yen, funds sit idle without interest. Based on risk preference, four common allocation strategies are:

1. Yen Fixed Deposit (Conservative)
Open a foreign currency account at E.SUN or Taiwan Bank, transfer yen online, with minimum NT$1,000, annual interest 1.5-1.8%, flexible terms from 3 to 12 months.

2. Yen Insurance Products (Mid-term)
Cathay United Bank or Fubon Life savings insurance, locking in guaranteed interest rates of 2-3%, suitable for 1-5 year mid-term financial needs.

3. Yen ETFs (Growth)
Yuanta 00675U tracking yen index, or Japan 50 ETF, support fractional purchase, regular investment, low management fee (e.g., 0.4%/year for 00675U), diversifying currency risk.

4. USD/JPY Rate Trading (Swing)
Trade currency pairs like USD/JPY or EUR/JPY on forex platforms, with long and short options, 24-hour trading, small capital to capture intraday or swing price differences. Platforms generally offer zero commission, low spreads, and stop-loss/take-profit tools.

Essential Q&A for Beginners on Currency Exchange

What’s the difference between cash rate and spot rate?

Cash rate (Cash Rate) applies to physical cash and coins, exchanged on the spot, but banks add 1-2% as liquidity cost. Spot rate (Spot Rate) is used for electronic transfers or T+2 settlement, closer to international market prices, more favorable but requires waiting for settlement. Simple: cash is convenient but expensive; transfer is cheaper but slower.

How many yen for NT$10,000?

Formula: Yen amount = NT$ amount × current rate. Using Taiwan Bank’s December 10, 2025 rate of 4.85, NT$10,000 can exchange for about 48,500 yen; at the spot rate 4.87, about 48,700 yen, difference of 200 yen (NT$40).

What to bring for counter exchange?

Taiwanese: ID + passport; foreigners: passport + residence permit; companies: business registration. If pre-booked online, also bring transaction notification. Under 20 years old need parental consent and written approval. Large amounts over NT$100,000 may trigger source of funds declaration.

Foreign currency ATM withdrawal limits?

Banks are adjusting due to new regulations from October 2025; most now limit daily withdrawal to NT$100,000-150,000 equivalent. CTBC: NT$120,000/day; Taishin and E.SUN: NT$150,000/day. Other banks’ limits are lower; use your own bank’s card to avoid cross-bank fees.

Final Decision Logic

Yen is no longer just for travel pocket money but also an asset with hedging and appreciation potential. Under continued NT$ depreciation pressure, holding some yen can hedge stock market volatility and benefit from BOJ rate hikes via fixed deposits.

Advice for beginners: Start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM” for simplicity and low cost. After withdrawal, immediately transfer into fixed deposits or ETFs for automatic growth. This approach saves on cash exchange margins and allows your funds to work 24/7, making travel more cost-effective and investments more efficient. Remember the core principle: exchange in installments to spread risk, and invest immediately after exchange to make your money grow.