TWD to JPY: The 4 major exchange channels cost breakdown, which is the most cost-effective?

By the end of 2025, the yen has shown a strong upward trend, with the TWD/JPY exchange rate reaching 4.85, an appreciation of nearly 9% compared to 4.46 at the beginning of the year. For Taiwanese planning to travel to Japan or seeking to hedge their yen holdings, now is a noteworthy time to pay attention. However, exchanging yen may seem simple, but choosing different exchange channels can result in handling fees and exchange spreads that could cost you several thousand TWD.

This article provides a comprehensive breakdown of the 4 most common ways to exchange yen in Taiwan, using real cases to show how to minimize costs.

Is it worth exchanging for yen? Consider these reasons first

Many think that exchanging yen is just for traveling abroad, but from daily use to financial investments, the practical value of the yen exceeds expectations.

Travel and Living Needs

Japanese merchants still rely heavily on cash payments (credit card penetration about 60%). Whether shopping in Tokyo, skiing in Hokkaido, or vacationing in Okinawa, preparing cash in yen is essential. Additionally, purchasing agents, online shopping from Japan, and students working abroad also need to pay directly in yen.

Financial Hedging Value

The yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). During geopolitical risks or stock market volatility, funds tend to flow into yen for safety. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while the stock market fell 10%. Investors holding yen positions gained a buffer. For Taiwanese investors, allocating in yen can effectively hedge against Taiwan stock market risks.

Arbitrage Trading Opportunities

Japan maintains low interest rates (only 0.5%), attracting investors to finance in low-interest yen and invest in higher-yield USD. Currently, the USD/JPY interest rate differential is 4.0%. When global risks rise, closing these positions can be profitable.

Is it worthwhile to exchange yen now?

As of December 2025, the TWD/JPY rate is 4.85, with an annual appreciation of 8.7%. This already provides considerable exchange gains for Taiwanese currency exchangers, especially amid the pressure of TWD depreciation. In the second half of the year, Taiwan’s foreign exchange demand increased by 25%, mainly driven by tourism recovery and hedging funds.

Short-term Exchange Rate Outlook

The Bank of Japan Governor Ueda Kazuo’s recent hawkish comments have sparked expectations of rate hikes (expected to raise by 0.25 basis points to 0.75% on December 19), with Japanese bond yields reaching a 17-year high of 1.93%. USD/JPY has fallen from the high of 160 at the start of the year to 154.58. In the short term, it may fluctuate around 155, with a medium to long-term forecast of further decline below 150.

Investment Recommendations

Exchanging yen now is feasible, but a “staged entry” strategy is advised to avoid converting all at once. Although yen has hedging functions, short-term fluctuations of 2-5% may occur due to arbitrage unwinding.

Comparing 4 channels for exchanging yen to TWD

Method 1: Bank Counter Cash Exchange

Bring cash TWD to a bank branch or airport counter to buy yen cash. This traditional method uses the “cash selling rate,” which is 1-2% worse than the spot rate, plus some banks charge fees, making it the most costly overall.

Example Calculation

Based on Taiwan Bank’s rate on December 10, 2025: cash selling rate is 0.2060 TWD/JPY (1 TWD = 4.85 JPY). Exchanging 50,000 TWD yields about 242,500 JPY, but using the spot rate (~4.87) would give over a thousand more yen.

Bank Cash Selling Rates and Fees Table

Pros & Cons

• ✓ Simple, safe, with full denominations
• ✗ Worst rate, limited by business hours, possible fees
• Suitable for: small urgent needs, unfamiliar with online operations

Method 2: Online FX Conversion + ATM or Counter Withdrawal

Use bank app or online banking to convert TWD into yen and deposit into a foreign currency account, using “spot sell rate” (about 1% better than cash selling). To withdraw cash, additional withdrawal fees apply (starting around 100 TWD), but overall costs are still lower than counter exchange.

Ideal for experienced forex traders wanting to buy at lower rates, also suitable for transferring yen into fixed deposits (annual interest 1.5-1.8%) or purchasing yen insurance policies.

Pros & Cons

• ✓ 24/7 operation, allows staged cost averaging, better rates
• ✗ Need to open a foreign currency account first, withdrawal fees apply
• Suitable for: experienced investors holding yen long-term

Method 3: Online FX Conversion + Designated Branch Pickup

No need for a foreign currency account. Fill in exchange info online, select pickup branch and date, transfer funds, then present ID and transaction notice at the branch to collect. Taiwan Bank’s “Easy Purchase” online FX conversion is fee-free (plus 10 TWD for TaiwanPay payment), with about 0.5% better rates.

Best for pre-planning before travel, especially with 14 Taiwan Bank branches at Taoyuan Airport (including 2 24-hour counters), convenient for airport pickup.

Pros & Cons

• ✓ Better rates, often fee-free, airport pickup available, no prior account needed
• ✗ Requires 1-3 days advance booking, pickup during business hours only
• Suitable for: planned travelers, airport pickup

Method 4: Foreign Currency ATM Withdrawal

Use chip-enabled bank card at foreign currency ATMs to withdraw yen cash, available 24/7, cross-bank withdrawals (TWD account deduction fee only 5 TWD). Supports major currencies, but limited locations (~200 nationwide).

Fubon Bank’s foreign currency ATMs allow direct withdrawal from TWD accounts, with a single limit of about 150,000 TWD equivalent, no FX fee. Be aware that during peak times (like airports), cash may run out, so plan early.

Pros & Cons

• ✓ Instant withdrawal, 24/7 flexibility, minimal cross-bank fee
• ✗ Limited locations, fixed denominations (1,000/5,000/10,000 JPY), may be out of stock at peak times
• Suitable for: urgent needs, no time for bank visits

Cost comparison of 4 exchange channels

Based on exchanging 50,000 TWD, estimated costs (including spreads and fees):

Most cost-effective: Online FX conversion

If planning to travel more than 3 days ahead, online FX + airport branch pickup costs the least, saving at least 500-1,200 TWD in fees. With 50,000 TWD, you can get about 500 more yen, which adds up significantly with larger amounts.

Foreign currency ATM withdrawal limits overview

Based on 2025 new regulations, withdrawal limits vary:

Post-regulation, daily limits often drop to 100,000-150,000 TWD. Distribute withdrawals or use your own bank card to avoid exceeding limits.

After exchanging yen to TWD, what should you do?

Don’t let funds sit idle. Consider these 4 investment options:

1. Yen Fixed Deposit Open a foreign currency account, transfer yen into a fixed deposit, minimum 10,000 yen, current annual interest 1.5-1.8%. Suitable for conservative investors.

2. Yen Insurance Policy Buy yen-denominated savings insurance from Cathay or Fubon, with guaranteed interest rates of 2-3%, holding medium term (3-5 years) for stable returns.

3. Yen ETFs Invest in ETFs like Yuanta 00675U tracking yen indices, follow yen trends, and buy fractional shares via broker apps, suitable for dollar-cost averaging.

4. Forex Trading Trade USD/JPY or EUR/JPY on forex platforms, capturing exchange rate movements. Suitable for experienced traders, with the advantage of both long and short positions, 24-hour trading.

Common questions about yen to TWD exchange

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

Cash rate applies to physical cash transactions, settled immediately, but is 1-2% worse than the spot rate. Spot rate is used for electronic transfers settled T+2, closer to international market rates, more favorable.

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

Using Taiwan Bank’s rate on December 10, 2025: 4.85, 10,000 TWD ≈ 48,500 JPY; with spot rate (~4.87), about 48,700 JPY, difference of 200 yen.

Q: What documents are needed for counter exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit; companies: business registration. For online booking, bring transaction notice. Under 20 requires parental consent; large exchanges (>100,000 TWD) may need source declaration.

Q: Are there withdrawal limits at foreign currency ATMs?

Yes, varies by bank. China Trust: single limit ~120,000 TWD; E.SUN: single ~50,000 TWD, daily ~150,000 TWD; others usually 20,000 TWD per transaction. Distribute withdrawals to avoid exceeding limits.

Summary: 2 key points for smart yen exchange

Yen has evolved from a simple travel “pocket money” to an asset with hedging and investment value. Follow the principles of “staged exchange + immediate allocation” to maximize every TWD.

Beginners are advised to start with “online FX + airport pickup” or “ATM withdrawal,” then transition into fixed deposits, ETFs, or forex trading based on needs. This way, you not only save costs when traveling but also add a layer of financial protection amid global market fluctuations.