Japanese Yen Exchange Guide | 4 Practical Comparison Channels for the Most Cost-Effective Exchange

The pressure of TWD depreciation in 2025 continues, and foreign currency allocation has become a hot investment topic. Currently, the TWD to JPY exchange rate has surpassed 4.85, hitting this year’s high, appreciating by 8.7% compared to 4.46 at the beginning of the year. At the same time, the TWD to HKD exchange rate remains under close watch, with both becoming safe-haven assets. Is it now cost-effective to exchange for JPY? How can you exchange to save the most? We will show you the data-driven results.

Why is it worth exchanging for JPY? Investment value > Travel demand

Many think exchanging for JPY is just for travel, but nowadays, the main driver is more about financial allocation.

1. One of the three global safe-haven currencies
JPY is ranked alongside USD and CHF as a major safe-haven currency. When global markets fluctuate, funds flow into JPY for protection—during the Russia-Ukraine conflict in 2022, JPY appreciated 8% in one week, effectively hedging a 10% stock market decline. For Taiwanese investors, holding JPY can buffer Taiwanese stock risks.

2. Rising interest rate cycle brings new opportunities
Bank of Japan Governor Ueda Kazuo has recently made hawkish comments, with market expectations of a 0.25bps rate hike on December 19 to 0.75% (a 30-year high), and Japanese government bond yields have surged to a 17-year high of 1.93%. This breaks Japan’s 30-year ultra-low interest rate environment, boosting JPY attractiveness rapidly.

3. Arbitrage trading space
The US-Japan interest rate differential is as high as 4.0%, with many investors using low-interest JPY loans to invest in higher-yield USD assets. When risks increase, they close positions, and this wave of arbitrage has increased JPY volatility, creating short-term trading opportunities.

In the second half of the year, Taiwan’s foreign exchange demand increased by 25%, with 40% from travel recovery and 60% from safe-haven allocation—reflecting the shift of JPY from a “consumption currency” to an “asset currency.”

4 practical methods tested: Which is most cost-effective?

Many people habitually exchange at bank counters, but they may lose hundreds of NT dollars just on the spread. For example, exchanging NT$50,000, we tested each method:

Method 1｜Bank counter cash exchange

The most traditional but most costly method. Banks use “cash selling rate,” which is 1-2% worse than the spot rate, plus possible handling fees, resulting in the heaviest loss.

Using Taiwan Bank’s December 10, 2025 rate as an example, cash selling rate is 1 JPY = NT$0.2060 (equivalent to NT$1 = 4.85 JPY), with E.SUN Bank charging an additional NT$100 per transaction. Exchanging NT$50,000 results in a loss of NT$1,500–2,000.

Suitable for: Travelers unfamiliar with online operations or urgent airport needs

Cost: Loss of NT$1,500–2,000

Quick rate check for each bank:

Method 2｜Online exchange + foreign currency ATM withdrawal

Operable 24/7, using “spot selling rate,” about 1% better than cash rate. After exchange, you can directly withdraw cash via foreign currency ATMs, paying only NT$5 cross-bank fee (cheaper with your own bank card).

Fubon Bank’s foreign currency ATM withdrawals do not charge exchange fees, with a daily limit of NT$150,000 equivalent, making it the most flexible option. There are about 200 locations nationwide, but peak times may face cash shortages.

Advantages: Better rates, 24/7 access, low cross-bank fees
Disadvantages: Need a foreign currency account, possible cash shortages
Suitable for: People who don’t have time to visit banks or need urgent cash
Cost: Loss NT$800–1,200

Method 3｜Online currency exchange + airport pickup

No need to open a foreign currency account, just pre-book online, then bring ID and notification to pick up cash at the counter. Taiwan Bank’s “Easy Purchase” service has no handling fee, and PayNT payment costs NT$10, with a 0.5% exchange rate advantage.

Taoyuan Airport has 14 Taiwan Bank branches (2 open 24 hours), making it the best choice before departure. Mega Bank offers similar services. Booking takes 1–3 days; no same-day branch change.

Advantages: No handling fee, airport pickup, planned process
Disadvantages: Need to book in advance, cannot change branch
Suitable for: Travelers planning trips
Cost: Loss NT$300–800

Method 4｜Foreign currency ATM withdrawal (fastest)

Insert your chip-enabled bank card into an ATM, and cash is dispensed in seconds. Deducted directly from your NT$ account, with a NT$5 cross-bank fee. Denominations are fixed at NT$1,000/5,000/10,000 JPY.

Limited locations (about 200), and cash shortages may occur during peak times. Japan ATM withdrawal services will be adjusted to support only international cards (Mastercard/Cirrus) by year-end.

Advantages: Fastest, most flexible, lowest fees
Disadvantages: Few locations, peak shortages, fixed denominations
Suitable for: Emergency situations or last-minute needs
Cost: Loss NT$800–1,200

Cost comparison table of four methods

Beginner tip: For budgets of NT$50,000–NT$200,000, use “online exchange + airport pickup”; over NT$200,000, consider “online exchange + periodic batch exchange.”

Now, exchange for JPY vs HKD — which to choose?

Many face the choice between JPY and HKD. Currently, NT$ to JPY is 4.85, and NT$ to HKD is 3.87. From an investment perspective:

JPY advantages: Strong safe-haven, supported by rising interest rates, 17-year high government bond yield of 1.93%
HKD features: Stable linked system, pegged to USD, small fluctuations but lower yields

At this stage, exchanging NT$ for JPY is more cost-effective. JPY has more room to appreciate (up 8.7% year-to-date), and fixed deposit rates of 1.5–1.8% outperform HKD. But if hedging is the only goal, HKD’s stability is more friendly to conservative investors.

After exchanging for JPY, don’t let your money sit idle

Many people just hold onto JPY after exchange, but that’s where the real gains begin.

Option 1｜JPY fixed deposit
E.SUN / Taiwan Bank foreign currency accounts, starting from 10,000 JPY, with annual interest rates of 1.5–1.8%. The safest choice.

Option 2｜JPY insurance policy
Cathay / Fubon savings insurance, with guaranteed interest rates of 2–3%, better for medium-term holding (3–6 years).

Option 3｜JPY ETFs
Yuan Da 00675U tracks the JPY index, can be bought as fractional shares via brokerage apps, suitable for long-term value growth. Management fee 0.4% annually.

Option 4｜Forex trading bands
USD/JPY or EUR/JPY trading, 24-hour market, suitable for experienced traders. Long/short, leverage flexible, small capital needed to start.

Forex exchange checklist

Counter service: ID + passport (for locals); passport + residence permit (for foreigners)
Online booking: ID + passport + transaction notification
Note: Under 20 needs parent accompaniment; over NT$100,000 requires source of funds declaration

ATM withdrawal limits by bank

Reminder: From October 2025, many banks will strengthen anti-fraud measures, with third-party digital account limits reduced to NT$100,000/day. It’s recommended to diversify withdrawals or use your own bank card to avoid cross-bank fees.

Key conclusion

The golden moment to exchange NT$ for JPY has arrived. Whether for travel or asset allocation, follow the two principles of “batch entry + invest immediately after exchange” to maximize gains. With a year-to-date appreciation of 8.7%, a rising interest rate cycle, and fixed deposit rates of 1.5–1.8%, these favorable factors elevate JPY from pocket money to serious assets.

For beginners, starting with Taiwan Bank’s online exchange with NT$50,000 costs only NT$300–800 in losses. Upgrading to foreign currency ATMs or online exchange can be next steps, and finally, based on your needs, consider fixed deposits, ETFs, or band trading. This approach minimizes costs while earning returns—making it the truly cost-effective way to exchange.