Japanese Yen Exchange Guide: Practical Comparison of 4 Major Channels, Is Now the Right Time to Exchange?

Introduction: Why the sudden switch to JPY?

The critical point of TWD to JPY reaching 4.85 (December 10, 2025) has prompted many to reassess the value of the yen. But exchanging for yen isn’t just for traveling abroad— from an investment perspective, the yen is one of the world’s three major safe-haven currencies. For Taiwanese investors, currency exchange behind this move also involves strategies for hedging Taiwan stock risks and diversifying assets.

Since the beginning of the year, the yen has appreciated from 4.46 to 4.85, a total increase of 8.7%. Those who exchanged early have already gained from this move. The question is: Is it still worthwhile to enter now? The answer is yes, but the right approach is essential.

Why is the yen worth paying attention to? Not just a travel currency

Travel and daily consumption

Cash payments in Japan remain mainstream (credit card penetration only 60%). Whether shopping in Tokyo, skiing in Hokkaido, or vacationing in Okinawa, cash is still in demand. Plus, for purchasing, online shopping, studying abroad, and part-time work, yen cash remains essential.

Deeper financial market significance

The yen ranks among the three major global safe-haven currencies (alongside USD and Swiss Franc). This is no coincidence. Japan’s economic fundamentals are stable, central bank policies predictable, and debt levels relatively manageable. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while the stock market fell 10%—demonstrating the power of a safe-haven currency. For Taiwanese investors, holding some yen assets acts as insurance for their portfolios.

Additionally, Japan’s ultra-low interest rate environment (BOJ rate at only 0.5%) makes the yen a “funding currency,” enabling arbitrage trading mechanisms. Investors borrow yen at low interest, convert to higher-yield USD investments (around 4.0% USD-JPY interest rate differential), and unwind positions when risks rise—this creates systematic buying support.

Four ways to exchange TWD for JPY: fees, exchange rates, and practical comparison

Many think exchanging yen is just a matter of going to the bank, but the actual costs can add up to NT$2,000 more than expected. Here’s a detailed analysis.

Method 1: In-person cash exchange—most traditional, highest cost

Bring cash to a bank or airport counter and exchange for yen cash on the spot. Simple and safe, but using the “cash selling rate” (1-2% worse than spot rate), costs are higher.

For example, Taiwan Bank’s cash selling rate is about NT$0.2060 per yen (i.e., NT$1 = 4.85 yen). Exchanging NT$50,000 would result in an estimated loss of NT$1,500–2,000. Some banks also charge an additional NT$100–200 handling fee, increasing costs further.

Suitable for: Urgent airport needs, small amounts, or unfamiliar with online procedures.

Method 2: Online currency exchange + cash withdrawal at counter or ATM—mid-tier option

Use bank apps or online banking to convert NT$ into yen and deposit into a foreign currency account (using the spot selling rate, about 1% discount). When cash is needed, withdraw at counters or foreign currency ATMs. Exchanging NT$50,000 this way costs about NT$500–1,000.

Banks like E.SUN offer this service, with a minimum deposit of 10,000 yen, and 24-hour online operation allows for phased entry to average costs. Monitoring exchange rates and buying in batches when the rate is favorable (e.g., TWD/JPY below 4.80) can optimize long-term costs.

Suitable for: Investors experienced in forex, planning to hold yen long-term.

Method 3: Online currency exchange + airport pickup—best before travel

No need to open a foreign currency account in advance. Simply book online via bank website, specify amount, branch, and date. After completing the transaction, bring ID and notification to pick up at the counter. Taiwan Bank’s “Easy Purchase” has no handling fee (NT$10 if paid via TaiwanPay), with about 0.5% better exchange rate.

Taoyuan Airport has 14 Taiwan Bank counters (including 2 24-hour locations). You can book 3–7 days ahead and pick up before departure, avoiding queues. Exchanging NT$50,000 costs about NT$300–800 less.

Suitable for: Planned trips, travelers wanting to pick up cash at the airport, or those not wanting to open an account early.

Method 4: Foreign currency ATM withdrawal—most flexible but limited

Use a chip-enabled debit card at foreign currency ATMs to withdraw yen directly. Cross-bank fee is NT$5, operational 24/7. Banks like E.SUN provide services deducting from TWD accounts, with a daily limit of NT$150,000.

However, ATM locations are limited (~200 nationwide), and denominations are restricted (usually 1,000, 5,000, 10,000 yen). Cash may run out during peak times (e.g., airports). With NT$50,000, the cost is about NT$800–1,200.

Suitable for: Emergency needs, quick access without visiting counters, 24-hour flexibility.

Cost comparison table for four methods (based on NT$50,000 exchange)

Is it worthwhile to exchange yen now? Considering exchange rate, interest rates, and risks

Current exchange rate

TWD/JPY at 4.85, up from 4.46 earlier this year—an 8.7% appreciation. Is this a good entry point? It depends on your time horizon.

The Bank of Japan (BOJ) Governor Ueda recently adopted a hawkish tone, boosting rate hike expectations to 80%. The December 19 meeting is expected to raise rates by 0.25 basis points to 0.75% (a 17-year high), with 30-year Japanese government bond yields reaching 1.93%. USD/JPY has fallen from a high of 160 to 154.58; short-term fluctuations may revisit 155, but medium to long-term forecasts suggest below 150.

In simple terms: the yen’s long-term appreciation outlook remains positive, but volatility will increase in the near term.

Investment allocation perspective

For investment purposes, the yen is suitable for hedging Taiwan stock volatility. But beware of arbitrage risks—when global risk appetite improves and arbitrage positions unwind, the yen could temporarily fall 2–5%.

Recommended strategy: Gradual entry, not all at once. For example, buy in 3–4 batches spaced 1–2 weeks apart to average costs and reduce risk of timing errors.

Comparison with other currencies

How much TWD for 300 euros? At current rates (~1 euro = NT$34), 300 euros ≈ NT$10,200. Compared to yen, the interest environment (1.5–1.8% vs. 0.3% for euro) is more attractive, and the yen’s safe-haven attribute is stronger. That’s why yen remains the top choice for currency exchange in Taiwan.

After exchanging yen, where should the money go?

Once you have yen, don’t just leave it idle. Here are four options based on risk appetite.

Conservative: Yen fixed deposit

Minimum NT$10,000 yen, annual interest 1.5–1.8%. E.SUN and Taiwan Bank offer online fixed deposits. Over a year, NT$100,000 yen can earn an extra NT$1,500–1,800.

Mid-term: Yen savings insurance

Cathay and Fubon Life offer yen-denominated savings insurance with guaranteed interest rates of 2–3%, for 3–6 years. Lower risk than stocks, better returns than fixed deposits.

Growth: Yen ETFs

Products like Yuanta 00675U or iShares Yen ETF (00703) track yen indices, available as fractional shares via broker apps. Suitable for dollar-cost averaging. Management fee around 0.4%, with good liquidity.

Swing trading: Forex

Trade USD/JPY or EUR/JPY on forex platforms, with long and short options, 24/7 operation. Benefits include low capital requirements, leverage amplifying gains, but higher risk. Requires basic understanding of forex fluctuations.

Quick FAQs

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

Cash rate is the bank’s buy/sell price for physical cash, typically 1–2% worse than the spot rate, used for in-person cash exchange. Spot rate is the market trading price, used for electronic transfers and account adjustments, closer to international market prices. In short: electronic transactions use the spot rate (cheaper), cash transactions use the cash rate (more expensive).

Q: How much yen for NT$10,000?

Using the cash selling rate of 4.85, NT$10,000 ≈ 48,500 yen. Using the spot rate (~4.87), about 48,700 yen—difference of 200 yen (~NT$40).

Q: What do I need to bring for in-person exchange?

Taiwanese citizens: ID card + passport; foreigners: passport + residence permit. If booked online, also bring transaction notification. Under 20? Must be accompanied by a parent. Exchanging over NT$100,000 may require source of funds declaration.

Q: What’s the limit for foreign currency ATM withdrawals?

Post-2025 regulations, banks have adjusted limits. CTBC: NT$120,000/day; Taishin: NT$150,000/day; E.SUN: NT$50,000 per transaction, NT$150,000 per day. Use your own bank card to avoid cross-bank fees (NT$5 per transaction). Plan ahead during peak times.

Conclusion: Yen is now a versatile asset

Yen is no longer just pocket money for travel; it’s a multi-functional asset with hedging, fixed income, and arbitrage features.

Whether for next year’s Japan trip, risk diversification, or asset transfer amid TWD depreciation, mastering “phased currency exchange + not leaving the position idle” can minimize costs and maximize gains.

Beginners are advised to start with online exchange + airport pickup or foreign currency ATM, then explore fixed deposits, ETFs, or swing trading after familiarization. This way, you can enjoy more cost-effective travel and add a layer of protection during global market turbulence.