TWD to JPY exchange: the most cost-effective way｜Practical comparison of 4 currency exchange methods in April 2025

Currently, the Taiwan dollar to Japanese yen exchange rate is about 4.85, meaning 1 TWD can be exchanged for 4.85 JPY. Compared to the 4.46 at the beginning of the year, the annual appreciation has reached 8.7%. For those exchanging yen in Taiwan, the exchange gains are indeed significant. However, simply choosing the wrong currency exchange channel can cost you the price of a few more cups of bubble tea. This article summarizes the latest four methods to exchange Japanese yen in 2025, helping you calculate the true cost-effectiveness based on actual rates.

Why Now Is a Good Time to Exchange Yen

The Japanese yen is not just pocket money for travel; it has different values from daily life to investment.

Everyday Consumption: When traveling in Japan, most stores only accept cash (credit card penetration is only 60%), and purchasing Japanese cosmetics, clothing, or anime merchandise often requires direct payment in yen. Additionally, students planning to study or work in Japan usually exchange currency in advance to avoid fluctuating rates at the last minute.

Financial Investment Perspective: The yen ranks among the world’s three major safe-haven currencies (alongside USD and Swiss Franc). During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in one week, buffering a 10% stock market decline. For Taiwanese investors, exchanging yen is not only for travel funds but also as a hedge against Taiwan stock market volatility. Meanwhile, Japan’s long-term ultra-low interest rate policy (0.5%) makes the yen a “funding currency,” with many institutions borrowing yen for arbitrage, creating a market environment with abundant liquidity.

Four Main Channels for Exchanging Yen in Taiwan

Many people mistakenly think that exchanging yen just involves going to a bank, but the actual costs vary far more than expected. Here are the four latest currency exchange methods and their real cost comparisons.

1. In-Branch Cash Exchange｜Traditional but High Cost

Bring Taiwan dollar cash directly to a bank branch or airport counter to exchange for yen cash. While simple and safe, this uses the “cash selling rate” (about 1-2% worse than the spot rate), resulting in higher overall costs. Some banks also charge fixed handling fees, adding to the expense.

For example, Taiwan Bank’s rate on December 10, 2025: Cash selling rate is about 0.2060 TWD/JPY (1 TWD = 4.85 JPY). Exchanging 50,000 TWD would incur an estimated loss of 1,500-2,000 TWD.

Suitable for: Travelers unfamiliar with online operations or needing urgent cash exchange (e.g., at the airport).

Pros and Cons:

• Pros: Safe, full denominations, on-site assistance
• Cons: Less favorable rates, limited operating hours (weekday 9:00-15:30), possible additional handling fees

Reference rates and fees from major banks on December 10, 2025 (subject to actual bank websites):

2. Online Currency Exchange to Deposit Accounts｜Flexible in Batches but with Withdrawal Fees

Use online banking or app to convert TWD into yen and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling rate). If cash is needed, it can be withdrawn at counters or foreign currency ATMs, but this incurs exchange spread handling fees (starting from about 100 TWD).

This method suits those monitoring exchange rates and entering in batches at low points. For example, when TWD/JPY drops below 4.80, gradually accumulate positions. Exchanging 50,000 TWD might result in a loss of 500-1,000 TWD.

Suitable for: Investors experienced with foreign exchange, frequently using foreign currency accounts, and possibly transferring into yen fixed deposits (current annual interest rate around 1.5-1.8%).

Pros and Cons:

• Pros: 24-hour operation, averaging costs over batches, better rates
• Cons: Need to open a foreign currency account first, withdrawal incurs additional fees

3. Online Currency Settlement for Direct Pickup｜Best pre-departure booking method

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 notification to pick up in person. Taiwan Bank’s “Easy Purchase” online settlement is fee-free (pay only 10 TWD via TaiwanPay), with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank outlets (including 2 open 24 hours), convenient for pickup before departure. Exchanging 50,000 TWD might cost an estimated loss of 300-800 TWD.

Suitable for: Planned travelers who want to pick up cash directly at the airport.

Pros and Cons:

• Pros: Favorable rates, often no handling fee, airport pickup available
• Cons: Requires prior reservation (at least 1-3 days), pickup during bank hours only

4. Foreign Currency ATM Instant Withdrawal｜24/7 but limited locations

Use chip-enabled bank cards to withdraw yen cash from foreign currency ATMs, supporting 24-hour operation and interbank withdrawals. Deducts only about 5 TWD per transaction from your TWD account, with no additional exchange fee. However, locations are limited (about 200 nationwide), and currency and denominations are restricted, usually only major currencies. Exchanging 50,000 TWD might result in a loss of 800-1,200 TWD.

Suitable for: People who don’t have time to visit banks or need urgent cash.

Pros and Cons:

• Pros: Instant withdrawal, high flexibility, low cross-bank fee
• Cons: Limited locations and denominations, cash may run out during peak times

SinoPac Bank’s foreign currency ATM daily withdrawal limit is about 150,000 TWD equivalent; choose based on personal needs. It’s recommended not to wait until the last minute, as high-traffic locations like airports may run out of cash.

Cost Comparison of the 4 Methods

Based on December 2025 data, estimating for 50,000 TWD exchange:

Timing for Exchanging Yen

In the second half of 2025, Taiwan’s currency exchange demand is expected to grow by 25%, driven by travel recovery and hedging needs. Yen is experiencing significant fluctuations, but the overall trend warrants attention.

Market Analysis: The US is entering a rate cut cycle supporting the yen, while the Bank of Japan is expected to raise rates soon. Recently, Governor Ueda’s hawkish comments pushed market expectations for a 0.25 basis point hike to 0.75% at the December 19 meeting (a 17-year high). Japanese government bond yields hit 1.93%, the highest since 2008, while USD/JPY has fallen from the early-year high of 160 to around 154.58.

Investment Advice: Although the yen is attractive as a safe-haven asset, short-term arbitrage closing risks could cause 2-5% volatility. It’s recommended to enter gradually, avoiding all-in exchanges. Long-term forecasts suggest USD/JPY will stay below 150, with a positive outlook on the yen.

Asset Allocation After Exchanging Yen

If you don’t want your funds to sit idle with no interest after exchanging yen, consider these four conservative growth or income options:

1. Yen Fixed Deposit (Conservative) Open a foreign currency account with E.SUN or Taiwan Bank, deposit yen online. Minimum 10,000 yen, annual interest rate about 1.5-1.8%, suitable for risk-averse investors.

2. Yen Insurance Policy (Mid-term Hold) Cathay or Fubon Life offer yen savings insurance with guaranteed rates of 2-3%, combining protection and growth.

3. Yen ETF (Growth) For example, Yuanta 00675U tracks the yen index, allowing fractional shares via brokerage apps for dollar-cost averaging, diversifying risk. Management fee about 0.4% annually.

4. Forex Swing Trading Trade yen currency pairs (e.g., USD/JPY or EUR/JPY) on forex platforms for short- or medium-term operations, suitable for experienced traders. Advantages include two-way trading, 24-hour market, and low capital requirements.

While yen is a strong safe-haven asset, it remains affected by global arbitrage unwinding and geopolitical conflicts (e.g., Taiwan Strait, Middle East). For investment, yen ETFs can diversify risk; for intraday or swing strategies, closely monitor international forex markets.

FAQs

Q. What is the difference between cash rate and spot rate?

Cash Rate is the buy/sell rate offered by banks or forex dealers for physical cash (banknotes/coins), applicable for personal travel or on-site transactions. It’s convenient for immediate cash exchange but usually 1-2% worse than the spot rate, with higher costs.

Spot Rate is the market rate for settlement within two business days (T+2), mainly used for electronic transfers or non-cash transactions. It’s more favorable and closer to international market prices but involves waiting for settlement.

Q. How much yen can I get for 10,000 TWD?

Based on Taiwan Bank’s December 10, 2025 rate:

• Cash selling rate about 4.85 (1 TWD = 4.85 JPY): 10,000 × 4.85 = approximately 48,500 JPY
• Using spot selling rate about 4.87: 10,000 × 4.87 = approximately 48,700 JPY

Difference of about 200 JPY, roughly NT$40.

Q. What documents are needed for in-branch exchange?

Taiwanese citizens: ID card + passport

Foreigners: passport + residence permit

Company exchange: business registration documents

Special cases:

• Under 20: accompanied by parent and consent letter
• Large amounts (over NT$100,000): source of funds declaration
• Online reservation: transaction notification required

Q. What is the daily withdrawal limit for foreign currency ATMs?

As of October 2025, limits are adjusted as follows:

It’s recommended to use your own bank card to avoid cross-bank fees (5 TWD per transaction). Plan ahead during peak times to prevent cash shortages.

Summary: Two Principles for Smart Yen Exchange

The yen has evolved from just travel “pocket money” to an asset with hedging and investment value. Whether preparing for a trip to Japan next year or diversifying assets amid TWD depreciation pressure, mastering “batch exchange + don’t leave funds idle” can minimize costs and maximize gains.

Beginners are advised to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then transfer yen into fixed deposits, ETFs, or small forex trades as needed. This way, you can enjoy more cost-effective travel and add a layer of asset protection during global market turbulence.