## Essential Reading Before Exchanging to JPY: The Latest 4 Major Plans Cost Breakdown

How long has it been since you last visited Japan? With the TWD to JPY exchange rate reaching 4.85, many are starting to seriously consider currency exchange. But did you know? The choice of exchange channel can make you spend an extra NT$2000 in just one transaction.

### Why is 2025 a worthwhile year to exchange to JPY?

Speaking of which, the reasons to exchange JPY now are more compelling than ever. First, for travel—cash is still the primary payment method across Japan (credit card penetration is only 60%), and shopping, skiing, and vacations in Tokyo and Osaka all require cash. Second, from a financial perspective—JPY is one of the world’s three major safe-haven currencies (alongside USD and Swiss Francs). When stock markets fluctuate, funds often flow into JPY for safety. Lastly, from an investment angle—The Bank of Japan is on the verge of raising interest rates, with the December 19 meeting expected to increase rates to 0.75% (a 30-year high), which will also boost interest rates on fixed deposits and related products in Japan.

According to the latest data, the TWD continued to depreciate last year, with domestic currency exchange demand increasing by 25% in the second half, with JPY accounting for the majority. Compared to 4.46 at the start of the year, the currency has appreciated by about 8.7%, which is a significant exchange gain for Taiwanese investors.

### If I exchange NT$10,000 to JPY, which method should I choose?

The key question: If I want to exchange NT$10,000 (or more), which method is best? Let’s look at the cost differences across channels.

#### **Plan 1: In-branch bank exchange—Most traditional but most expensive**

Bring cash NT$ to a bank or airport counter and sell it at the bank’s cash selling rate to get JPY cash. It sounds simple, but this transaction uses the “cash selling rate,” which is 1-2% worse than the market spot rate, plus some banks charge handling fees. For NT$50,000, expect a loss of NT$1500-2000.

For example, Taiwan Bank’s latest rate (as of December 10, 2025) is about 0.2060 (meaning NT$1 = 4.85 JPY). If you use the spot rate (about 4.87), you can get about 200 more JPY for NT$50,000, saving NT$40. The situation is similar across banks, but E.SUN and Cathay United Bank charge an extra NT$100-200 in fees, while Taiwan Bank, Mega International, and CTBC waive fees.

**Suitable for:** Urgent airport needs, those unfamiliar with online operations.

#### **Plan 2: Online exchange + in-branch cash pickup—Advanced option**

Use bank app or online banking to transfer NT$ into a foreign currency account (at the spot rate), then during business hours, pick up cash at the branch or withdraw from an FX ATM. This method offers about 1% better exchange rate, but withdrawal incurs fees (NT$5-100 per transaction). For NT$50,000, expect a loss of NT$500-1000.

Ideal for those experienced with foreign currency accounts and wanting to average costs over multiple entries. E.SUN Bank and Taiwan Bank support this service, offering flexible online operations and the ability to buy in parts when the TWD/JPY rate dips below 4.80. After exchange, you can also transfer directly into a fixed deposit with annual interest rates of 1.5-1.8%.

**Suitable for:** Forex investors, long-term holders.

#### **Plan 3: Online currency exchange + airport pickup—Best pre-trip reservation**

This is the hottest method in recent years—no need for a foreign currency account. Simply fill in the amount, pick a branch and date on the bank’s website, and then pick up the cash at the branch. Taiwan Bank’s “Easy Purchase” online exchange is fee-free (pay NT$10 via TaiwanPay), with a rate advantage of 0.5%. Expect a loss of NT$300-800 for NT$50,000.

Notably, Taiwan Bank has 14 pickup points at Taoyuan Airport (including 2 open 24 hours), making airport pickup very convenient. The downside is that you need to book 1-3 days in advance, and pickup times are limited to business hours.

**Suitable for:** Well-planned travelers who prepare ahead.

#### **Plan 4: FX ATM withdrawal—Most flexible but most limited**

Use a chip-enabled debit card at FX ATMs to withdraw JPY cash 24/7, with a cross-bank fee of NT$5 per withdrawal, directly debited from your NT$ account. For NT$50,000, expect a loss of NT$800-1200.

For example, Fubon Bank’s FX ATMs have a daily withdrawal limit of NT$150,000, with no exchange fee. However, there are only about 200 ATMs nationwide, with fixed denominations (1000, 5000, 10000 JPY), and cash may run out during peak times.

**Suitable for:** Those with no time to visit banks, urgent needs, business travelers.

### Cost comparison table of the 4 plans

| Exchange Method | Rate Level | Loss Cost (NT$50,000) | Main Limitation | Suitable Audience |
|------------------|--------------|----------------------|-----------------|-------------------|
| In-branch exchange | Worst | NT$1500-2000 | Business hours only | Urgent needs |
| Online exchange + in-branch | Moderate | NT$500-1000 | Needs foreign currency account | Investors |
| Online currency exchange + airport | Favorable | NT$300-800 | Needs reservation | Travelers |
| FX ATM withdrawal | Favorable | NT$800-1200 | Limited locations | Urgent/temporary users |

### Is it worth exchanging to JPY now? Yes, but consider staggered entries

As of December 10, 2025, the TWD/JPY rate is about 4.85. Compared to 4.46 at the start of the year, an 8.7% appreciation is significant, but this does not mean the current rate is the absolute bottom.

Based on the BOJ’s rate hike expectations, USD/JPY has fallen from a high of 160 early this year to around 154.58, with a short-term test of 155 possible, but medium to long-term forecasts suggest below 150. This indicates the JPY still has room to appreciate, but short-term fluctuations are within 2-5%.

**Suggested strategy:** Don’t exchange all at once; instead, stagger your entries. For example, split NT$50,000 into three parts, entering at 4.85, 4.82, and 4.80, to effectively reduce risk.

### How to make your money work with NT$10,000 in JPY

After exchanging to JPY, instead of letting cash sit idle without interest, consider the following options:

1. **JPY Fixed Deposit:** The safest, starting from 1,000 JPY, with annual interest of 1.5-1.8%. In 3 months, you can earn about NT$150-180.
2. **JPY Insurance Policy:** Mid-term option, savings insurance with 2-3% annual interest, locking funds for 3-5 years.
3. **JPY ETFs (00675U, 00703):** Growth-oriented, can be bought as fractional shares via broker apps, tracking JPY indices.
4. **Forex Swing Trading:** High risk and high reward, trading USD/JPY or EUR/JPY on trading platforms to capture intraday volatility.

While JPY is a strong safe-haven, it also carries two-way risks. Global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) could depress the exchange rate. For investment-oriented holdings, JPY ETFs with low management fees (about 0.4% annually) and diversified risk are good passive options.

### Common Q&A

**Q: How big is the difference between cash rate and spot rate?**
Cash rate applies to physical cash transactions, typically 1-2% worse than the spot rate. Spot rate is used for electronic transfers and account conversions (T+2 settlement), closer to international market prices.

**Q: Is there a big difference when exchanging NT$10,000 for JPY?**
At a rate of 4.85, NT$10,000 is about NT$2061 equivalent. Using the cash selling rate (0.2060), you get fewer JPY. Using the spot rate (0.2065), the difference is small but becomes significant with larger amounts. For NT$50,000, the difference can be 200-500 JPY, roughly NT$40-100.

**Q: What do I need to bring for in-branch exchange?**
Locals: ID card + passport; foreigners: passport + residence permit. For company exchanges, business registration is required. Online reservations also require transaction notices. Large amounts (over NT$100,000) may require source of funds declaration.

**Q: Are there limits on FX ATM withdrawals?**
From 2025, most banks have increased daily limits to NT$100,000-150,000 (depending on the bank). RMB withdrawals are limited to NT$20,000 per transaction. It’s recommended to split withdrawals or use your bank’s card to avoid cross-bank fees.

### Conclusion

The JPY is no longer just for travel “pocket money,” but also an asset with hedging and investment value. Whether for next year’s trip to Japan or hedging Taiwan stock market volatility, mastering the core strategy of “staggered exchange + full investment afterward” can lower costs and maximize returns. Beginners are advised to start with “Taiwan Bank’s online exchange + airport pickup” or “FX ATM,” then transition into fixed deposits, ETFs, or swing trading based on needs. This way, you not only enjoy more cost-effective trips abroad but also add a layer of protection during global market turbulence.