2025 Yen Exchange Guide: Cost Comparison of Four Major Channels, How to Exchange for the Cheapest?

Quick Comparison: Four Exchange Methods at a Glance

Want to exchange for JPY but don’t know where to start? Actually, Taiwan offers four ways to exchange JPY, with a maximum cost difference of NT$2000. We’ll present the conclusion first, then break down each method.

Conclusion: If budget and time permit, “Online Settlement” is most cost-effective; if time is tight, Foreign Currency ATM is most flexible; if you want to observe and buy gradually, online exchange is best.

Why is JPY Worth Paying Attention To? Not Just for Traveling

When exchanging foreign currency in Asia, JPY often ranks high. But the logic behind this is more than just “liking Japan.”

Three Major Use Cases

Travel Expenses: Tokyo, Kyoto, Hokkaido—most attractions accept cash (credit card penetration is only 60%). Shopping for Japanese cosmetics and fashion online or via purchasing agents also requires JPY. If planning to study abroad or work holiday, exchanging in advance can avoid exchange rate risks.

Financial Investment Perspective: JPY is one of the world’s three major safe-haven currencies (alongside USD and CHF). During Russia-Ukraine conflict in 2022, JPY appreciated 8% in a week, while stocks fell 10%. For Taiwanese investors, holding JPY is like holding insurance—when Taiwan stocks fluctuate, JPY often strengthens.

Low-Interest Rate Arbitrage: The Bank of Japan maintains ultra-low interest rates (0.5%), making JPY an excellent “funding currency.” Traders borrow low-interest JPY to invest in higher-yield USD (USD-JPY interest spread over 4%), then close positions when risks rise. This arbitrage logic also influences short-term exchange rate fluctuations.

Deep Dive into Four Exchange Channels

First: Bank Counter Exchange — Most Traditional but Costliest

Carry NT$ cash to a bank branch or airport counter to exchange for JPY cash on the spot. Seems straightforward, but uses the “cash selling rate” (1-2% worse than market spot rate), plus possible fees, making it the most expensive.

As of December 10, 2025, real-time rates (updated at 9:18 Taiwan time):

• Cash selling rate: 1 JPY ≈ NT$0.2060 (NT$1 ≈ 4.85 JPY)
• Some banks add NT$100-200 handling fee

Pros & Cons: Safe and reliable, denominations available (1,000/5,000/10,000 JPY), but limited to bank hours (9:00-15:30 on weekdays), highest cost. Best for those unfamiliar with online methods or urgent airport needs.

Second: Online Exchange + Withdrawal — Observe Trends, Enter in Batches

Use online banking app or website to convert TWD to JPY into a foreign currency account, using “spot sell rate” (about 1% better than cash rate), then withdraw cash at counter or foreign ATM. Additional withdrawal fee (~NT$100+).

Advantages: You can operate in batches. When TWD/JPY is below 4.80, buy some; at 4.85, buy more—average cost lowers.

Process:

1. Open a foreign currency account (online possible)
2. Execute “TWD → JPY” via app
3. JPY credited (T+2 business days)
4. Pick up cash at counter or foreign ATM

Cost Breakdown (E.SUN example):

• Online spot rate: ~4.87 (better than counter)
• Withdrawal fee: NT$100+ (cross-bank NT$5)
• Total cost: NT$500-1,000

Pros & Cons: Operate 24/7, better rates than counter, suitable for those with forex accounts wanting to average costs. Disadvantages: withdrawal fees, T+2 wait. If not urgent, consider fixed-term deposit (annual interest 1.5-1.8%) after exchange.

Third: Online Settlement with Ticket Pickup — Most Convenient at Airport

No need to pre-open a forex account. Fill out form on bank website: currency (JPY), amount, pickup branch, date. After submission, bring ID + transaction notice to pick up cash at counter. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this, with appointment options at Taoyuan Airport.

Highlights of Taiwan Bank Online Settlement:

• Fee: Free (NT$10 if paid via TaiwanPay)
• Rate advantage: ~0.5% better than counter
• Airport branches: 14 branches, 2 open 24/7
• Booking: 1-3 days in advance

Cost estimate (NT$50,000): NT$300-800, lowest among four methods.

Pros & Cons: Best exchange rate, often free handling, ideal for pre-trip planning. Cons: requires prior appointment, limited flexibility, branches can’t be changed on the spot. Best for planned travelers.

Fourth: Foreign Currency ATM — For Urgent Needs, 24/7 Access

Use chip-enabled bank card at foreign currency ATMs, available 24/7, directly deduct from TWD account, NT$5 cross-bank fee. Limited locations (~200 nationwide), fixed denominations (1,000/5,000/10,000 JPY), cash shortages possible during peak times.

E.SUN Foreign Currency ATM Rules:

• Daily withdrawal limit: NT$150,000 equivalent
• No exchange fee (direct deduction from TWD)
• Cross-bank fee: NT$5 per transaction
• Note: From end of 2025, need international card (Mastercard/Cirrus) for ATM withdrawals in Japan

Cost estimate (NT$50,000): NT$800-1,200 (including cross-bank fee).

Pros & Cons: Most flexible, no need to visit bank, but limited locations, fixed denominations, potential cash shortages. Plan ahead rather than emergency.

Is it a Good Time to Exchange JPY? Market Timing Analysis

Snapshot as of December 10, 2025: TWD/JPY ≈ 4.85, meaning NT$1 ≈ 4.85 JPY.

Compared to early this year at 4.46, JPY has appreciated about 8.7%. Good news for Taiwanese investors—currency gains are significant, especially amid TWD depreciation pressures. In H2, Taiwan’s forex demand increased by 25%, driven by travel recovery and hedging needs.

Short- and Medium-term Outlook

The Bank of Japan (BOJ) is expected to raise interest rates. Governor Ueda’s hawkish comments pushed market expectations to 80% for a 0.25 basis point hike to 0.75% (highest in 30 years). JGB yields hit 17-year high at 1.93%.

Result? USD/JPY dropped from 160 at the start of the year to around 154.58 now. Short-term may bounce around 155, but medium-long term forecast below 150.

Implication for Currency Traders:

• Short-term volatility: 2-5% swings from arbitrage unwinding
• Long-term trend: Yen still has appreciation potential
• Strategy: Enter gradually, avoid all-in exchange

Investment Paths After Exchanging JPY

Don’t let your JPY sit idle—there are four clear ways to grow its value:

1. JPY Fixed Deposit — Most Stable Income Option

Open a foreign currency account, deposit JPY online. Minimum NT$10,000, annual interest 1.5-1.8% (some banks higher). E.SUN and Taiwan Bank offer this, suitable for conservative investors.

Related concept: AUD fixed deposit yields about 4% annually, an alternative to JPY deposits, though AUD is more volatile.

2. JPY Insurance — Medium-term Protection

Cathay and Fubon Life offer JPY savings insurance, with guaranteed interest rates of 2-3%, combining protection and returns. Suitable for holding 3-5 years without frequent management.

3. JPY ETFs — Growth-oriented Allocation

Yuanta 00675U, 00703 tracking JPY or Japanese stock indices, can be bought as fractional shares via broker apps. Suitable for dollar-cost averaging and optimistic about JPY appreciation. Management fee around 0.4% annually.

4. Forex Swing Trading — Active Strategy

Trade USD/JPY or EUR/JPY directly on forex platforms supporting JPY trading. Pros: two-way trading, 24/7, small capital needed, suitable for experienced traders.

FAQs

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

Cash rate (Cash Rate) is used for physical cash transactions, allowing immediate withdrawal but with a 1-2% rate spread and higher fees. Spot rate (Spot Rate) is used for electronic transfers, settled T+2, closer to international market prices, more favorable.

Q. How much JPY for NT$10,000?

Calculation: JPY = NT$10,000 × current rate (using cash sell rate 4.85)

10,000 × 4.85 = approx. 48,500 JPY

Using spot rate 4.87: approx. 48,700 JPY, difference about 200 JPY.

Q. What to bring for counter exchange?

Taiwanese: ID + passport; foreigners: passport + residence permit. If pre-booked (online settlement), bring transaction notice. Under 20 need parent’s consent; large amounts (>NT$100,000) require source declaration.

Q. Daily withdrawal limit at foreign ATMs?

From 2025, rules vary:

• CTBC, Taishin: NT$120,000-150,000 equivalent/day
• E.SUN: NT$150,000/day (including card charges)
• Advice: Use your bank card to avoid NT$5 per cross-bank fee, and spread withdrawals.

Final Advice

JPY has long gone beyond “travel pocket money” status, becoming an asset with hedging and investment value. Whether for next year’s Japan trip, TWD depreciation hedge, or small forex allocation, following the principles of “batch exchange + don’t leave it idle” can maximize benefits.

Beginners are recommended to start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then move into fixed deposits, ETFs, or swing trading as needed. This way, you not only save on travel costs but also add a layer of financial protection amid global market turbulence.