Taiwan Dollar to Japanese Yen Exchange Complete Guide | 4 Major Methods Cost Comparison and the Best Timing

Current Exchange Rate Overview: Timing for Yen Conversion

As of December 10, 2025, the TWD to JPY exchange rate has reached 4.85, meaning 1 TWD can be exchanged for 4.85 JPY. Compared to the early-year level of 4.46, the JPY has appreciated by 8.7% over the year, which constitutes a significant forex gain for Taiwanese individuals with exchange needs.

In the current market environment, both investment and travel demand for the yen are rising. Statistics show that Taiwan’s forex exchange demand in the second half of the year increased by 25%, mainly driven by the recovery of Japanese tourism and capital hedging needs.

However, should you exchange the full amount now? The answer is yes, but with a phased strategy. The JPY exchange rate remains volatile, supported by the US rate cut cycle strengthening the yen, while the Bank of Japan’s rate hike expectations bolster market bullish sentiment—Governor Ueda’s hawkish comments push the rate hike expectation to 80%, with a projected increase of 0.25 bps to 0.75% at the December 19 meeting (a 30-year high). USD/JPY has fallen from the high of 160 at the start of the year to 154.58, with short-term fluctuations possibly reaching 155. Long- and medium-term forecasts suggest it will stay below 150.

Multiple Values of Exchanging Yen: From Travel to Financial Allocation

Daily Application

For most Taiwanese, yen usage has never left daily life. Travel expenses remain the primary need—shopping in Tokyo, Osaka, or skiing in Hokkaido—most merchants still rely on cash transactions (credit card penetration is only 60%). Buyers and online shoppers in Japan need to settle directly in yen, and students or working holidaymakers should prepare forex exchanges in advance to avoid increased costs from sudden exchange rate fluctuations.

Financial Market Value

From an investment perspective, the yen holds an extraordinary position as one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). Japan’s stable economy and manageable debt make it a refuge during market turbulence—during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, buffering a 10% decline in the stock market. For Taiwanese investors, holding yen is not only for enjoyment but also for hedging systemic risks in the Taiwan stock market.

Additionally, Japan maintains a long-term ultra-low interest rate policy (currently 0.5%), making the yen a “funding currency.” Many investors borrow low-interest yen to invest in higher-yield USD, with a spread of 4.0%. When risks rise, they close positions and buy back yen, creating an arbitrage cycle.

Four Ways to Exchange Yen in Taiwan: Full Analysis

First: Bank/Counter Cash Exchange at Airport

A traditional and straightforward method—bring TWD cash to a bank branch or airport counter, sell at the cash selling rate to get yen cash. Since this uses the “cash selling rate” (about 1-2% worse than the spot rate), it incurs the highest overall cost and should be a backup plan.

For example, Taiwan Bank’s rate on December 10, 2025, at 9:18 AM was 0.2060 TWD per yen (equivalent to 4.85 exchange rate), with some banks adding fixed handling fees.

Advantages: Simple and safe operation, multiple denominations (1,000/5,000/10,000 yen), staff assistance on-site.
Disadvantages: Large rate spread, limited by bank hours (9:00-15:30 on weekdays), possible handling fees.
Suitable for: Those unfamiliar with online operations, small amounts for urgent needs (e.g., at the airport).

Comparison of cash selling rates (2025/12/10)

Second: Online Forex Exchange + Counter/ATM Cash Withdrawal

Via online banking or app, convert TWD to yen and deposit into a foreign currency account, using “spot selling rate” (about 1% discount). If cash is needed, withdraw at counters or foreign currency ATMs, but with additional forex spread and handling fees (starting around 100 TWD).

For example, E.SUN Bank’s app allows forex conversion with a fee equal to the difference between spot and cash rates, minimum 100 TWD. This method suits those monitoring exchange rates, entering in phases when TWD/JPY is below 4.80.

Advantages: 24/7 operation, ability to buy in batches for average cost, significant rate advantage.
Disadvantages: Need to open a foreign currency account in advance, withdrawal fees (interbank around 5-100 TWD).
Suitable for: Experienced forex users, frequent foreign currency account holders, can also invest in yen fixed deposits (annual interest 1.5-1.8%).

Third: Online Forex Settlement + Airport Pickup

No need for a foreign currency account—fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notice to pick up at the counter. Taiwan Bank and Mega Bank offer this service, with appointment options at airport branches, ideal for pre-trip planning.

Taiwan Bank’s “Easy Purchase” online forex settlement is fee-free (TaiwanPay payment costs only 10 TWD), with about 0.5% rate advantage. Taoyuan Airport has 14 Taiwan Bank outlets (2 open 24 hours), allowing direct pickup before departure.

Advantages: Favorable rates, often fee-waived, airport pickup options, well-planned.
Disadvantages: Need to book 1-3 days in advance, limited by bank hours, branch cannot modify.
Suitable for: Well-planned travelers who want to pick up at the airport.

Fourth: Foreign Currency ATM Instant Withdrawal

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen cash, supporting 24-hour operation and interbank transactions (deducted from TWD account with only 5 TWD fee). Mainly for major currencies like yen, with about 200 locations nationwide.

Fubon Bank’s foreign currency ATMs allow withdrawal from TWD accounts, with a daily limit of 150,000 TWD, no forex handling fee. Note that Japan ATM withdrawal services will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus).

Advantages: Instant withdrawal, flexible timing, low cross-bank fees.
Disadvantages: Limited locations and denominations (fixed 1,000/5,000/10,000 yen), cash may run out during peak times.
Suitable for: Urgent, on-the-spot needs.

Cost and Benefit Comparison of the 4 Methods

Latest Regulations on TWD Foreign Currency ATM Withdrawal Limits

Due to new regulations in 2025, limits for foreign currency ATM withdrawals vary across banks, with some banks tightening anti-fraud measures and lowering limits for digital accounts:

It is recommended to diversify withdrawals or use your bank’s card to avoid cross-bank fees. During peak times (airports, etc.), cash may run out quickly—plan ahead.

Common Questions About Yen Exchange

What is the difference between cash rate and spot rate?

Cash Rate: The buy/sell rate for physical cash (banknotes/coins), applicable for personal travel or on-site transactions. Advantages: immediate cash delivery, portable; disadvantages: usually 1-2% worse than spot rate, higher handling fees.

Spot Rate: The exchange rate for transactions settled within two business days (T+2) in the forex market, used for electronic transfers, non-cash settlements (interbank, import/export, personal foreign currency accounts). Features: more favorable (close to international market price), but requires T+2 settlement.

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

Calculation: Yen amount = TWD amount × current rate

Using Taiwan Bank’s rate on December 10, 2025, at 9:18 AM, about 4.85, 10,000 TWD ≈ 48,500 yen. Using spot sell rate (~4.87), about 48,700 yen, difference of 200 yen (roughly TWD 40).

What documents are needed for counter exchange?

• Taiwanese: ID card + passport
• Foreigners: Passport + residence permit
• Company: Business registration documents
• Online booking: Transaction notice

Note: Under 20 years old requires parental accompaniment and consent; large exchanges (over 100,000 TWD) may require source of funds declaration.

Advanced Allocation After Exchange: Continuous Growth of Yen Funds

Once you have exchanged yen, do not let the funds idle without interest. The following 4 advanced options suit small-scale beginners:

Yen Fixed Deposit: Stable choice, deposit via E.SUN/Bank of Taiwan online foreign currency account, starting from 10,000 yen, with annual interest of 1.5-1.8%.

Yen Insurance Policy: Medium-term holding, Cathay/Fubon savings insurance, with guaranteed interest rates of 2-3%.

Yen ETFs (e.g., 00675U, 00703): Growth-oriented, tracking yen index, can buy fractional shares via broker apps, suitable for periodic investment. Management fee 0.4% annually, effective risk diversification.

Forex Trading: Classic way to capture exchange rate fluctuations. USD/JPY or EUR/JPY two-way trading, 24/7 operation, with small capital participation. Advantages: flexible long/short positions, low costs, comprehensive tools (stop-loss, take-profit, trailing stops, real-time signals).

While yen has safe-haven attributes, two-way volatility risk exists. BOJ rate hikes are bullish, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) may suppress prices. For swing or intraday traders, forex platforms offer zero commissions and low spreads.

Complete Recommended Strategy

Considering all factors, the best path for beginners is:

1. Travel Planning Phase: Use “Taiwan Bank online forex settlement + airport pickup,” with favorable rates, no handling fees, and simple process.

2. Urgent Needs: Use foreign currency ATMs, 24-hour convenience, only 5 TWD cross-bank fee.

3. Investment Allocation: Use online forex to buy in phases, then transfer to fixed deposits or ETFs for income.

Yen is no longer just “pocket money” for travel but also an asset class with hedging and small investment functions. Follow the principles of “phased exchange + don’t leave money idle after exchange,” to lower costs and amplify gains, providing extra protection amid global market turbulence.