The 4 most cost-effective ways to exchange TWD to JPY: December is still a good time to make a move

Is it cost-effective to exchange for Japanese Yen now? Brief answer: Yes, but you need to choose the right method.

As of December 10, 2025, the TWD to JPY exchange rate stands at 4.85, up from 4.46 at the beginning of the year, appreciating about 8.7% over the past year. For those planning to travel abroad or looking to allocate investments, exchanging for Japanese Yen is becoming a hot topic. The Bank of Japan’s rate hike expectations are rising, and global safe-haven funds are flowing in, making the Yen one of the most stable choices besides the US dollar.

But here’s a key point: Exchanging 50,000 TWD using different methods can result in a difference of over ✓1,500 — which is like buying several more cups of bubble tea. So choosing the right channel is really important.

Why is exchanging for Japanese Yen becoming a hot topic now?

Three reasons make the Yen popular:

Travel demand surges: Tourism to Japan is recovering, with Taiwanese currency exchange demand increasing by 25% annually. Plus, Japanese merchants still mainly use cash (credit card penetration is only 60%), so cash exchange is essential.

Safe-haven asset attribute: The Yen ranks alongside USD and CHF as one of the world’s three major safe-haven currencies. During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in one week, serving as a buffer in investment portfolios. Taiwan stocks are volatile; holding some Yen can hedge risks.

Interest rate hike arbitrage space: The Bank of Japan Governor Ueda Kazuo is hawkish, with an 80% chance of rate hikes at the December 19 meeting, expected to raise rates to 0.75% (a 30-year high). This rate hike cycle opens new investment opportunities for the Yen.

Four ways to exchange Yen, with significant cost differences

Using 50,000 TWD as an example, here are real rates:

Method 1: Bank counter cash exchange — the most traditional and most expensive

Bring cash TWD to a bank branch or airport counter and exchange for Yen on the spot. Seems convenient, but actually the worst deal.

Why? Because banks use the “cash selling rate,” which is about 1-2% worse than the market spot rate. For example, Taiwan Bank’s rate on December 10 is 0.2060 (1 TWD = 4.85 Yen), with some banks adding 100-200 TWD handling fee.

Exchanging 50,000 TWD results in a loss of ✓1,500-2,000 TWD

Comparison of major banks (data as of 2025/12/10):

Suitable for: Those unfamiliar with online operations, needing small amounts urgently (e.g., at the airport when cash runs out).

Method 2: Online currency exchange + cash withdrawal at counter or ATM — Better rates, but consider fees

Complete currency exchange via bank app, convert TWD to Yen into a foreign currency account, using “spot sell rate” (about 1% discount), then withdraw cash at branch or ATM. Withdrawal incurs a spread fee (usually starting at 100 TWD).

The biggest advantage is the ability to average costs by buying in installments. For example, when TWD/JPY drops below 4.80, buy in parts to further lower the average exchange cost.

Exchanging 50,000 TWD results in a loss of ✓500-1,000 TWD

Requires opening a foreign currency account (most banks free), and choosing a low-fee ATM like Sinopac’s (detailed later).

Suitable for: Those with some forex experience, planning to buy in installments based on exchange rates, or even investing in Yen deposits (annual interest rate 1.5-1.8%).

Method 3: Online currency exchange + airport pickup — The smartest pre-order method

No need for a foreign currency account. Fill in currency, amount, pickup branch (including airport branches), and date on the bank’s website. After the bank completes the transfer, you can pick up with ID and transaction notice.

Taiwan Bank’s “Easy Purchase” online exchange is nearly fee-free (pay with Taiwan Pay for only 10 TWD), with an exchange rate advantage of over 0.5%. Impressively, Taoyuan Airport has 14 Taiwan Bank outlets, 2 of which operate 24 hours — so you can pick up Yen early morning on departure day.

Exchanging 50,000 TWD results in a loss of ✓300-800 TWD

Lowest cost, can specify pickup on departure day or 1-3 days earlier, avoiding last-minute rush.

Suitable for: Planned travelers, those who can book 1-3 days in advance, wanting to pick up Yen directly at the airport.

Method 4: Sinopac foreign currency ATM + other bank foreign currency ATMs — 24/7 access, but with caveats

Use a chip-enabled debit card at bank foreign currency ATMs to withdraw Yen cash 24 hours. Sinopac’s foreign currency ATM allows withdrawal from TWD account, with a daily limit of 150,000 TWD (equivalent Yen). No exchange fee, only cross-bank transfer fee (5 TWD).

Sounds great, but there are limitations: only about 200 ATMs nationwide, uneven distribution, fixed denominations (only 1,000/5,000/10,000 Yen), and cash shortages during peak times. Especially during the December travel season, airport ATMs often run out of cash.

Exchanging 50,000 TWD results in a loss of ✓800-1,200 TWD

Suitable for: Those in a hurry, with no time to visit banks, willing to risk cash shortages, living near foreign currency ATMs.

Summary table of 4 methods’ costs

Based on the latest data as of December 2025, for exchanging 50,000 TWD:

Conclusion: If you have a sufficient budget and can plan ahead, choose online exchange + airport pickup. For urgent trips, Sinopac foreign currency ATM is a good second choice. For investment, buy in installments based on exchange rate movements.

Yen trend forecast

December is a pivotal month for Yen exchange. The Bank of Japan’s rate hike is highly confirmed (80% market expectation), raising rates from 0.5% to 0.75% (a 30-year high). Japanese government bonds’ yields have hit 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. Short-term fluctuations may bring it back to 155, but medium to long-term outlook favors Yen strength, with forecasts pushing below 150.

Exchange advice: Use installment purchases. Don’t exchange everything at once; instead, do 2-3 rounds. For example, start by converting 30%, then if TWD/JPY drops to 4.80, convert 40%, and keep 30% as a buffer.

Next steps after exchanging Yen: Make your money work

Don’t let Yen just sit idle. Here are 4 common ways to grow your Yen assets:

1. Yen fixed deposit: Annual interest 1.5-1.8%, open accounts at E.SUN or Taiwan Bank, minimum 10,000 Yen, safe and guaranteed.

2. Yen insurance policy: Savings insurance with guaranteed 2-3% interest, suitable for medium-term (3-5 years) holding.

3. Yen ETFs (e.g., Yuanta 00675U): Track Yen index, fractional trading convenient, suitable for dollar-cost averaging into Yen. Management fee 0.4% annually, diversifies currency risk.

4. Forex trading: Trade USD/JPY or EUR/JPY directly on forex platforms, suitable for short-term volatility, zero commission, 24h trading, but higher risk.

Key Q&A

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

Cash rate (Cash Rate) is the rate banks offer for physical cash exchange, used for travel cash exchange, convenient on the spot but 1-2% worse than market spot rate.

Spot rate (Spot Rate) is the international market rate for T+2 settlement, used for electronic transfers, import/export, personal foreign currency accounts, closer to market price.

Q: How much Yen for 10,000 TWD?

Using Taiwan Bank’s December 10 cash selling rate of 4.85, 10,000 TWD ≈ 48,500 Yen. Using spot rate 4.87, ≈ 48,700 Yen. Difference about 200 Yen (TWD 40).

Q: What ID to bring for cash exchange?

ID card + passport (for locals) or passport + residence permit (for foreigners). If pre-booked online, bring transaction notice. Under 20 needs parental consent and accompaniment.

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

Sinopac’s limit is 150,000 TWD per day (equivalent Yen). CTBC Bank’s limit is 120,000 TWD. E.SUN Bank’s limit is 150,000 TWD (including card spending). During peak times, plan ahead or split withdrawals.

Summary: 3 principles to avoid loss

Yen is no longer just pocket money for travel; it’s also an asset class for hedging and investment.

Master these 3 principles to minimize costs and maximize gains:

✓ Use installment exchange: Don’t wait for perfect rates to exchange all at once; multiple entries (2-3 times) are more stable.

✓ Choose the right channels: Pre-plan with online exchange + airport pickup (lowest cost); only use Sinopac foreign currency ATM in urgent cases.

✓ Don’t let it sit idle after exchange: Put into fixed deposits, ETFs, or swing trading to keep Yen assets appreciating.

Whether you plan to visit Japan next year or hedge against TWD depreciation by converting some funds into Yen, mastering timing and methods makes your trip more cost-effective and adds a layer of protection during market turbulence.