Important to read before exchanging Japanese Yen: Beware of this cost black hole, accidentally paying an extra 2000 yuan

Watching the Taiwan dollar against the Japanese yen reach 4.85, many people are taking the opportunity to exchange currency. But do you know? Exchanging 50,000 TWD using the wrong method can result in a loss of up to 2,000 TWD—enough to enjoy over a dozen bowls of ramen in Tokyo.

Even more painfully, many people have no idea how much extra they are paying.

This article will break down the four most common ways to exchange JPY in Taiwan, so you can see at a glance the hidden costs of each method. It will also compare HKD to RMB and other international exchange rates, helping you understand how this logic applies across the global forex market.

Why exchange yen now? It’s not just about travel

When it comes to yen, many people immediately think of buying cosmetics in Kyoto or skiing in Hokkaido. But in reality, the uses of yen are much broader—and its investment value is gradually being recognized.

Travel and shopping: Japan’s cash culture remains strong, with most convenience stores and restaurants only accepting cash (credit card penetration is about 60%). People buying Japanese fashion, anime merchandise, or cosmetics often pay directly in yen to sellers or Japanese websites.

Financial investment: The yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc) because Japan’s economy is stable and government debt is manageable. Whenever markets are turbulent—like during the Russia-Ukraine conflict in 2022—capital floods into the yen, which appreciated 8% in a week, effectively buffering a 10% stock market decline. For Taiwanese investors, holding yen is like buying insurance against Taiwan stock market volatility.

Even more interesting is that the Bank of Japan has maintained ultra-low interest rates (around 0.25-0.5%) for a long time, creating a fertile ground for arbitrage—investors borrow yen at low interest, convert to high-yield USD (the USD/JPY interest rate spread once reached 4.0%), and when risk rises, close the position to buy back yen for profit. This two-way flow makes the yen a “sentiment thermometer” in global financial markets.

Is exchanging yen by 2025 worth it? Timing and method matter

Let’s look at the numbers first. As of December 10, 2025, the TWD/JPY rate is about 4.85 (1 TWD = 4.85 JPY). Compared to 4.46 at the start of the year, that’s an appreciation of about 8.7%—meaning, if you exchange now, you’re already earning an 8.7% gain on the exchange rate compared to early January.

Since mid-year, Taiwan’s forex demand has increased by 25%, mainly driven by travel recovery and risk hedging.

But is now the right time to exchange and hold? Not necessarily. The yen is still fluctuating within a wide range. Recent market expectations, driven by hawkish comments from BOJ Governor Ueda, have pushed up rate hike expectations to 80%, with a December 19 meeting expected to raise rates by 0.25 basis points to 0.75% (a 30-year high). Japanese government bond yields have hit a 17-year high of 1.93%.

This means USD/JPY, which peaked at 160 early this year, has fallen to around 154.58. It might rebound to 155 in the short term, but medium to long-term forecasts suggest below 150. For investors, staggered entry is more prudent than a one-time full exchange.

Comparing 4 exchange methods: the cost difference is huge if you choose wrong

Now, let’s get to the core—exchanging 50,000 TWD via different methods, how much does each cost?

Method 1: Foreign currency ATM—most flexible, but with limitations

Using a chip-enabled bank card at an overseas currency ATM to withdraw yen cash, open 24 hours, deducting only a 5 TWD interbank fee from your TWD account.

Advantages: Instant funds, highest flexibility, lowest cross-bank fee
Disadvantages: Limited locations (about 200 nationwide), fixed denominations (1,000/5,000/10,000 yen), cash often sold out during peak times
Estimated cost (50,000 TWD): about 800-1,200 TWD loss
Suitable for: Urgent needs, no time for counter transactions

For example, E.SUN Bank’s foreign currency ATM allows daily withdrawals up to 150,000 TWD from a TWD account with no exchange fee. But you must accept the ATM’s current cash rate (usually slightly worse than the spot rate), and during peak times (like at airports during Chinese New Year), cash may be sold out.

Method 2: Online exchange + counter withdrawal—balanced approach

Using bank app or online banking, convert TWD to yen at the “spot sell rate” (about 1% better than cash rate), and deposit into a foreign currency account. To withdraw cash, go to a branch or ATM, incurring a currency conversion fee (starting around 100 TWD).

E.SUN Bank’s app example: after online exchange, withdrawing cash incurs a fee equal to the difference between spot and cash rates, minimum 100 TWD.

Advantages: 24/7 operation, can buy in installments for average cost, better rates than counter
Disadvantages: Need to open a foreign currency account first, withdrawal incurs fee
Estimated cost (50,000 TWD): about 500-1,000 TWD loss
Suitable for: Experienced forex investors planning to hold yen long-term

This method is good for observing exchange rate trends, buying in installments when the rate dips below 4.80. Cash withdrawal is an extra cost; if you plan to deposit into a yen savings account (current annual interest 1.5-1.8%) or buy yen ETFs, you don’t need to withdraw cash.

Method 3: Online currency exchange for cash pickup—favorite among travelers

No need for a foreign currency account, just fill in currency, amount, pickup branch, and date on the bank’s website. The bank handles the exchange, and you pick up with ID and transaction notice.

Taiwan Bank’s “Easy Purchase” online exchange is a good example, with no fee (pay via TaiwanPay, only 10 TWD), and about 0.5% better rates. Notably, Taoyuan Airport has 14 Taiwan Bank branches, two of which are open 24 hours. Book a day in advance, and pick up at the airport on departure day.

Advantages: Better rates, often no fee, can choose airport pickup, last-minute arrangements possible
Disadvantages: Need to book 1-3 days in advance, pickup time limited by bank hours, branches can’t change pickup location on the spot
Estimated cost (50,000 TWD): about 300-800 TWD loss
Suitable for: Planned travelers with time to prearrange

The biggest benefit is convenience—especially for those planning a trip months ahead. Pre-booking 3 days before departure is straightforward. Taiwan Bank’s airport presence is extensive, so pickup location is rarely an issue.

Method 4: Counter exchange—most conservative, but most costly

Carrying cash to a bank branch or airport counter to exchange for yen cash. This traditional method is safe, reliable, with staff assistance, and full denominations (1,000/5,000/10,000 yen).

But—using the “cash selling rate,” which is about 1-2% worse than the spot rate, makes it the most expensive option.

For example, Taiwan Bank’s rate on December 10, 2025, at 9:18 AM, is about 0.2060 TWD per yen (roughly 4.85 yen per TWD). Some banks add fixed handling fees.

Comparison of cash selling rates and counter fees (2025/12/10):

Advantages: Safe, full denominations, staff assistance, no booking needed
Disadvantages: Worse rates, limited to bank hours (9:00-15:30), possible additional fees
Estimated cost (50,000 TWD): about 1,500-2,000 TWD loss
Suitable for: Inexperienced with online methods, small urgent exchanges (like at the airport)

Beginner practical tips: the most cost-effective combo

Based on the above, small travelers’ best approach is “online exchange + airport pickup”—lowest cost, simplest operation.

If you have a budget of 50,000-200,000 TWD, you can mix:

• 60% via online exchange (airport pickup)
• 40% via foreign currency ATM (backup cash)

This way, you enjoy the best rates and can handle emergencies.

After exchanging yen, don’t let your money sit idle

Many people just carry cash abroad after exchanging yen, unaware that Taiwan offers many ways to grow yen assets.

Yen fixed deposit: Most stable, open an FX account at E.SUN or Taiwan Bank, deposit online. Minimum 10,000 yen, annual interest 1.5-1.8%.

Yen insurance policies: Medium-term holdings, savings insurance from Cathay or Fubon Life, with guaranteed interest rates of 2-3%.

Yen ETFs (00675U, 00703): Growth options, Yuanta 00675U tracks yen index, can buy fractional shares via broker apps, suitable for dollar-cost averaging. Management fee 0.4% annually.

Forex swing trading: Trade USD/JPY or EUR/JPY directly on forex platforms, capturing rate fluctuations. Pros: two-way trading, 24/7, small capital needed.

Forex exchange FAQ—5 most common questions

Q: What’s the difference between cash rate and spot rate?
Cash rate is for physical bills and coins, used in travel exchanges or face-to-face transactions. It’s convenient for immediate cash, but usually 1-2% worse than the spot rate.

Spot rate is the foreign exchange rate settled within two business days (T+2) in the forex market, mainly for electronic transfers without physical cash. It’s more favorable and close to international market prices.

Q: How much yen can I get for 10,000 TWD?
Using the formula: 【Yen amount = TWD amount × current rate】
At Taiwan Bank’s December 10, 2025 rate of 4.85, 10,000 TWD ≈ 48,500 yen. Using the spot sell rate (~4.87), it’s about 48,700 yen—difference of only 200 yen (about TWD 40).

Q: What ID do I need to exchange foreign currency?
Counter transactions require a Taiwanese ID and passport; foreigners need passport and residence permit. If pre-booked online, also bring transaction notice. Under 20 need parental consent; large exchanges over 100,000 TWD require source declaration.

Q: Are there limits on ATM withdrawals?
Yes. From October 2025, new rules restrict third-party digital accounts to 100,000 TWD per day. Different banks have different limits:

It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Q: Is it cost-effective to exchange HKD to RMB?
HKD to RMB follows similar logic—compare cash rate, spot rate, and fees. In Hong Kong, bank counter exchanges usually use cash rates, which include spread costs. To save, online booking or ATM use is also recommended. Since RMB trading volume is larger, spreads tend to be smaller.

Summary: Currency exchange is just the first step in asset allocation

Yen has moved beyond just “travel pocket money,” becoming an asset class with hedging and investment functions.

Two core tips:

1. Exchange gradually, don’t convert all at once—use yen rate fluctuations to average your cost.
2. Don’t let your yen sit idle after exchange—deposit into fixed deposits, ETFs, or try forex swing trading to grow your money.

Beginners can start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM.” Once familiar, consider yen deposits, ETFs, or even forex trading.

This way, you not only save on travel costs but also add a layer of protection during global market turbulence. And when you see other currency exchanges like HKD to RMB or USD to EUR, you’ll already understand the principles and be able to judge the best method yourself.