## Is it worth exchanging Japanese Yen now? Staggered entry is the smart choice

Speaking of Japanese Yen, many people's first reaction is "a must-have for travel," but this wave of Yen exchange has gone beyond tourism and turned into an investment insurance policy. On December 10, 2025, the TWD to JPY exchange rate surged to 4.85, up 8.7% from 4.46 at the beginning of the year. For Taiwanese, exchanging Yen now is not a loss.

But the key question is—you need to choose the right method to exchange; otherwise, the handling fees and exchange rate differences can eat away thousands of TWD.

## Four main channels for Taiwanese to exchange Yen, with vastly different costs

Want to save money? First, understand how many types of exchange rates banks offer.

### In-person direct exchange: the most expensive way, avoid casually using it

Walking into a bank counter or airport, exchanging cash TWD for cash JPY seems most convenient, but it's actually the most costly. Banks use the "cash selling rate," which is 1-2% worse than the market spot rate, plus possible handling fees (some banks charge 100-200 TWD per transaction). Exchanging 50,000 TWD results in a loss of 1,500-2,000 TWD.

Taiwan Bank's cash selling rate is 0.2060 (meaning 1 TWD = 4.85 JPY), but nearby E.SUN Bank charges a 100 TWD handling fee. Suitable only for urgent, small amounts.

**Suggestion**: Use this only for last-minute airport needs; don't rely on it to save costs.

### Online currency exchange to foreign currency accounts: the preferred method for investors

This is the smarter way—log into your bank app, use the "spot selling rate" to transfer to a foreign currency account, with about 1% better rates. If you want to withdraw cash, pay a withdrawal fee (minimum 100 TWD), but overall still cheaper than in-person.

Key advantage? 24/7 operation, allowing for staggered purchases to average costs. When the TWD weakens and Yen hits a low point (e.g., 4.80), buy in installments. Later, this Yen can be transferred into Yen fixed deposits (annual interest 1.5-1.8%) or invested in Yen ETFs, preventing idle money.

Cost is about 500-1,000 TWD (roughly 50,000 TWD), suitable for those experienced with foreign currency accounts and interested in small investments.

### Online currency exchange before traveling: the best pre-departure option

No need for a foreign currency account—just fill out a form on the bank's website—select currency, amount, pickup branch, and time. After the system locks in the rate, schedule a visit to the counter to pick up cash. Taiwan Bank's "Easy Purchase" online exchange even waives handling fees (using Taiwan Pay costs only 10 TWD), with a 0.5% better rate.

The best part? You can reserve for airport pickup. Taoyuan Airport has 14 Taiwan Bank locations, two of which operate 24 hours, making it a lifesaver before departure. Handling fees are often waived, costing only 300-800 TWD for 50,000 TWD.

**Suitable for**: planners with fixed travel dates who want cash directly at the airport.

### Foreign currency ATM withdrawal: reliable but limited in number

Use a chip-enabled debit card to withdraw cash in Yen at foreign currency ATMs, open 24/7, with low cross-bank fees (only 5 TWD). However, the limitation is—there are only about 200 foreign currency ATMs nationwide, with fixed denominations of 1,000/5,000/10,000 Yen, and during busy times, cash may run out.

Especially near airports and stations, peak hours often see shortages. Exchanging 50,000 TWD costs about 800-1,200 TWD, suitable for those who lack time to visit banks or need urgent cash.

SinoPac Bank's foreign currency ATM has a daily limit of 150,000 TWD, with no exchange fee, making it a top-tier product in this category.

## Cost comparison table of 4 methods

| Exchange Method | Advantages | Disadvantages | Cost for 50,000 TWD | Suitable Situations |
|------------------|--------------|-----------------|---------------------|---------------------|
| In-person cash | Safe, full denominations | Worst exchange rate, limited hours | 1,500-2,000 TWD | Airport urgent needs, small amounts |
| Online currency exchange | 24/7, staggered averaging, better rates | Need foreign currency account, withdrawal fees | 500-1,000 TWD | Investment-oriented, long-term holding |
| Online pre-departure exchange | No fee, airport pickup, favorable rate | Need reservation, time-limited, branch can't modify | 300-800 TWD | **Travel planning, airport cash** |
| Foreign currency ATM | 24/7, low cross-bank fee, flexible | Few locations, fixed denominations, often sold out | 800-1,200 TWD | Urgent needs, no time for bank visit |

**Conclusion**: For a budget of 50,000 to 200,000 TWD, the most cost-effective combination is "online pre-departure exchange" or a mix of "online exchange + foreign currency ATM."

## Is it worthwhile to exchange Yen now? Staggered operation is the answer

Honestly, at an exchange rate of 4.85, the opportunity looks good. Last year, it was only 4.46, so the TWD to JPY appreciated by 8.7% in a year. Using Yen for investment has already yielded small gains. Moreover, in the second half of the year, Taiwan's demand for currency exchange surged by 25%, mainly due to travel recovery and hedging needs.

But don't foolishly exchange everything at once. The Yen's fluctuation range is still quite large. The upcoming US rate cut cycle favors the Yen, and BOJ Governor Ueda Kazuo has issued hawkish comments, with market expectations of a rate hike to 0.75% on December 19 (a 30-year high), pushing up Japanese bond yields (already at a 17-year high of 1.93%).

USD/JPY has fallen from a high of 160 at the start of the year to 154.58, with a short-term test of 155 possible, but medium to long-term forecasts point below 150. For investors, Yen as one of the three major safe-haven currencies (USD, CHF, JPY) can hedge against Taiwan stock market volatility, but there is short-term arbitrage risk, with possible fluctuations of 2-5%.

**The correct approach is**: stagger your entries, don't go all-in at once. Buy in parts weekly or monthly, accelerating when the TWD weakens and Yen is at a relative low. This balances risk.

## After exchanging Yen, don't let it sit idle

Once you have Yen, keeping it as cash yields nothing—it's a waste. Here are four simple upgrade options:

**1. Yen fixed deposit**: the most stable allocation. Open a foreign currency account, starting from 10,000 Yen, with an annual interest rate of 1.5-1.8%. E.SUN and Taiwan Bank support online setup.

**2. Yen insurance policy**: medium-term holding. Cathay and Fubon Life offer Yen-denominated savings insurance, with guaranteed interest rates of 2-3%, combining protection and growth.

**3. Yen ETF**: growth-oriented. Yuanta 00675U tracks Yen index, with an annual management fee of 0.4%. You can buy fractional shares via stock apps for dollar-cost averaging.

**4. Forex swing trading**: directly trade USD/JPY or EUR/JPY volatility. Open 24 hours, small capital can be used for long/short positions, suitable for short-term profit capturing.

While Yen is a strong hedge, it is also a two-way asset. Rate hikes benefit Yen, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) may depress it. For investment, Yen ETFs can diversify individual stock risks; for short-term trading, platforms like Mitrade offer zero commissions and low spreads, with stop-loss and take-profit tools, suitable for advanced traders.

## Common questions quick answers

**What's the difference between cash rate and spot rate?**

Cash rate is the bank's quote for physical bills and coins, with the advantage of immediate delivery and portability, but it is 1-2% worse than the spot rate and may include handling fees. Spot rate is the price for settlement within two business days in the forex market, used for electronic transfers and account transfers, offering better rates but with T+2 settlement. In short: cash is more expensive, electronic is cheaper.

**How much Yen can 10,000 TWD buy?**

Using Taiwan Bank's cash selling rate of 4.85 on December 10, 2025, 10,000 TWD exchanges for about 48,500 Yen. Using the spot selling rate of 4.87, it’s about 48,700 Yen—only a 200 Yen difference (roughly 40 TWD).

**What documents are needed for in-person exchange?**

Taiwanese should bring ID card + passport; foreigners bring passport + residence permit. For companies, business registration proof is required. After online reservation, you also need to bring transaction notification. Under 20 years old must be accompanied by a parent and sign consent; exchanging over 100,000 TWD may require source of funds declaration.

**What is the limit for foreign currency ATM withdrawals?**

From 2025, regulations vary by bank. CTBC Bank's card allows equivalent of 120,000 TWD, Taishin Bank 150,000 TWD, E.SUN Bank limits Yen withdrawals to 50 notes (about 50,000 TWD equivalent), with a daily cap of 150,000 TWD. Cross-bank withdrawals depend on issuing bank, usually with a 20,000 TWD per transaction limit. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees (5 TWD per transaction).

## Final advice

Yen is no longer just "pocket money for travel"; it has become an asset class with hedging and investment potential. As long as you follow the two principles of "staggered exchange + immediate allocation after exchange," you can minimize costs and maximize returns.

Beginners can start with Taiwan Bank's online exchange, airport pickup, or foreign currency ATM, then decide whether to put it into fixed deposits, ETFs, or small forex trades based on needs. Not only does this make travel cheaper, but it also adds a layer of protection during global market turbulence. Start planning now—it's not too late to allocate in Yen.