Japanese Yen Exchange Guide: A Complete Analysis of 4 Major Channels, Must-Read Before Traveling Abroad

December 10, 2025, the TWD to JPY exchange rate reaches 4.85, with travel and investment demand for the Japanese yen continuing to rise. But do you really know how to exchange yen most cost-effectively? Today, we will explain four currency exchange methods to help you spend less money unnecessarily.

Why is it worth exchanging for yen? Three main reasons

Many people think exchanging yen is just for traveling to Japan, but in fact, the value of the yen goes far beyond your imagination.

Travel and daily necessities

Although credit card penetration in Japan is about 60%, most small shops, attractions, and public transportation still only accept cash. Whether shopping in Ginza, dining in Dotonbori, skiing in Hokkaido, or vacationing in Okinawa, cash is essential. Additionally, many purchasing groups, Japanese online shoppers, and students need to pay directly in yen, so planning currency exchange in advance to avoid sudden fluctuations is crucial.

Safe-haven currency status

The yen is one of the three major safe-haven currencies alongside the USD and Swiss Franc. During market turbulence, funds flow into the yen for safety—during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% within a week, successfully buffering stock market declines. For Taiwanese investors, holding yen not only hedges against Taiwan stock volatility but also protects assets when geopolitical risks increase.

Arbitrage trading opportunities

The Bank of Japan maintains ultra-low interest rates (only 0.5%), making the yen a “funding currency.” Smart investors borrow yen at low interest, convert to higher-yield USD investments, with interest rate differentials exceeding 4.0%. When risks rise, they close the position by buying back yen—this is a classic forex arbitrage strategy.

Comparison of 4 currency exchange channels

Based on the latest rates as of December 10, 2025, we have summarized the cost differences across channels. Exchanging 50,000 TWD could result in a difference of over a thousand NT dollars.

Channel 1: In-person cash exchange—most traditional but most expensive

Carry TWD cash to a bank or airport counter to receive yen cash on the spot. Simple to operate, but using the “cash selling rate,” which is usually 1-2% worse than the spot rate.

For example, Taiwan Bank’s cash selling rate is about 0.2060 TWD/JPY (meaning 1 TWD = 4.85 JPY). Some banks also charge a fixed handling fee of 100-200 NT dollars. Exchanging 50,000 TWD this way results in a loss of about 1,500-2,000 NT dollars.

Advantages: Safe, full denominations, assistance from staff
Disadvantages: Worst exchange rate, limited by business hours, possible handling fees
Suitable for: Travelers unfamiliar with online operations or needing urgent cash at the airport

Major banks’ cash selling rates (2025/12/10):

Channel 2: Online currency exchange + in-person withdrawal—advanced investment approach

Use bank app or online banking to convert TWD into yen and deposit into a foreign currency account, enjoying the “spot sell rate” (about 1% better than cash selling rate). If cash is needed, withdraw at a branch or via foreign currency ATM, which incurs withdrawal fees (minimum 100 NT).

E.SUN Bank offers this service, with a minimum opening of 10,000 yen. Suitable for monitoring exchange rate trends, and when TWD/JPY drops below 4.80, you can buy in batches to lower average costs. Exchanging 50,000 TWD this way costs about 500-1,000 NT.

Advantages: 24/7 operation, dollar-cost averaging, better rates
Disadvantages: Need a foreign currency account, withdrawal fees apply
Suitable for: Experienced forex investors planning long-term yen holdings

Channel 3: Online currency purchase + airport pickup—best for planned travelers

No need for a foreign currency account. Fill in the amount and pickup branch online, then collect at the counter. Taiwan Bank’s “Easy Purchase” online currency purchase is fee-free (using TaiwanPay costs only 10 NT), with about 0.5% better rates. Taoyuan Airport has 14 pickup points, including 2 open 24 hours.

Ideal for pre-trip planning. Order 1-3 days in advance, pick up at the airport, saving time and money. Cost for 50,000 NT is about 300-800 NT.

Advantages: Better rates, often no handling fee, airport pickup options, no foreign currency account needed
Disadvantages: Need prior reservation, limited pickup times, branch cannot be changed
Suitable for: Well-planned travelers, those booking 1-3 days before departure

Channel 4: Foreign currency ATM—fast emergency solution

Use chip-enabled bank cards at foreign currency ATMs to withdraw yen cash, available 24 hours. Deducts only 5 NT from your TWD account for cross-bank fee, with a daily limit of 150,000 NT at some banks like E.SUN. No currency exchange fee.

About 200 ATMs nationwide, but they dispense fixed denominations (1,000/5,000/10,000 JPY). Cash may run out during peak times (especially at airports). Exchanging 50,000 NT costs about 800-1,200 NT.

Advantages: Instant withdrawal, 24/7 service, low cross-bank fees, flexible
Disadvantages: Limited locations and denominations, possible cash shortages at peak times
Suitable for: Workers with no time for in-person exchange or urgent needs

Summary table of exchange channels

Is it a good time to exchange yen now? Exchange rate trend analysis

As of December 2025, the TWD/JPY rate is about 4.85, up from 4.46 at the start of the year, appreciating by 8.7%. In the second half of the year, demand for currency exchange in Taiwan increased by 25%, mainly driven by travel recovery and hedging needs.

In the short term, the Bank of Japan is poised to raise interest rates. Governor Ueda Kazuo recently made hawkish comments, pushing market expectations to 80%, with a rate hike of 0.25 basis points to 0.75% on December 19 (a 30-year high). Japanese bond yields hit a 17-year high of 1.93%. The US is entering a rate-cut cycle, which could support the yen.

USD/JPY has fallen from a high of 160 at the start of the year to around 154.58, with a short-term test of 155 possible, but medium to long-term forecasts suggest below 150. For investment purposes, yen as a safe-haven currency is suitable for hedging Taiwan stocks, but watch out for 2-5% volatility when closing arbitrage positions.

Strategy suggestion: Use staggered exchange, avoid converting all at once. Observe the trend, and when the rate dips (TWD/JPY below 4.80), buy in parts to lower costs.

How to increase yen value after exchange?

After exchanging yen, don’t let the money sit idle with no interest. Based on USD deposit rates, you can allocate yen into the following options:

Yen fixed deposit—conservative capital preservation

E.SUN, Taiwan Bank, Cathay offer foreign currency fixed deposits. Minimum 10,000 yen, annual interest rate 1.5-1.8%, much higher than TWD deposits (usually below 1%). Compared to USD deposits (around 4-5%), yen yields are lower, but considering potential exchange rate appreciation, annualized returns remain attractive.

Yen insurance policies—medium-term holding

Cathay and Fubon Life offer yen savings insurance with guaranteed interest rates of 2-3%, suitable for medium-term holdings of 5-10 years.

Yen ETFs—growth cycle

Yuanta 00675U, 0070 tracking yen indices can be bought as fractional shares via brokerage apps, suitable for dollar-cost averaging. Management fee is 0.4% annually, capturing yen appreciation and Japanese asset growth.

Yen forex trading—swing trading

Trade USD/JPY, EUR/JPY, etc., on forex platforms, with long and short options, 24-hour trading. Small capital needed, suitable for experienced traders.

FAQs

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

Cash rate is the buy/sell rate banks offer for physical cash (banknotes/coins), used for personal travel exchange. It’s immediate but usually 1-2% worse than the spot rate. The spot rate is the foreign exchange market rate settled T+2, mainly for electronic transfers, offering better rates close to international market prices.

Q: How much yen can I get with 10,000 NT?

Using the formula【JPY amount = TWD amount × current rate】. At Taiwan Bank’s December 10, 2025, cash selling rate of 4.85, 10,000 NT can get about 48,500 JPY. Using the spot selling rate of 4.87, about 48,700 JPY, a difference of roughly 200 JPY (about 40 NT).

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

Taiwanese citizens: ID card + passport; foreigners: passport + residence permit. For online reservation (online currency purchase), also bring transaction notification. Under 20 years old need parental consent and ID; large amounts over 100,000 NT require source declaration.

Q: Are there limits on foreign currency ATM withdrawals?

From October 2025, ATM withdrawal limits vary by bank. CTBC: 120,000 NT/day; Taishin: 150,000 NT/day; E.SUN: 50,000 NT per transaction, 150,000 NT/day. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Conclusion

The yen has evolved from a simple travel currency to an asset with hedging and investment value. Whether for next year’s travel or asset hedging against TWD depreciation, mastering “staggered exchange + not leaving money idle” can minimize costs and maximize returns.

For beginners, start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then move into fixed deposits, ETFs, or forex trading based on your needs. This way, you can enjoy more cost-effective travel and add an extra layer of asset protection during global market turbulence.