How to Save on Yen Exchange? 4 Tips That Save Up to 2000 Yuan in Costs

December 10, 2025, the Taiwan dollar against the Japanese yen rose above 4.85, meaning that 10,000 TWD can be exchanged for approximately 48,500 JPY. Compared to 4.46 at the beginning of the year, the yen has appreciated by 8.7% over the year. For those planning to travel or invest in Japan, now is a good time. However, there are many ways to exchange yen, and choosing the wrong method can result in paying several thousand more in fees and exchange rate spreads.

Why exchange for yen?

Demand for yen in Taiwan comes not only from travel. From a financial market perspective, the yen is one of the three major safe-haven currencies globally (alongside the USD and Swiss Franc), with a stable economy and relatively low debt. When stock markets fluctuate, funds often flow into yen to preserve value—during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in one week. For Taiwanese investors, allocating some assets in yen can effectively hedge against Taiwan stock market risks.

Additionally, Japan maintains ultra-low interest rates (only 0.5%), making the yen a financing currency for arbitrage trading. Many investors borrow low-interest yen to buy higher-yield USD, capturing spreads over 4%.

Real cost comparison of 4 ways to exchange yen

Many people are accustomed to exchanging currency at bank counters, but the costs vary greatly across channels. Using 50,000 TWD as a baseline, let’s examine each:

Method 1: Bank counter cash exchange

Bring cash to a bank or airport counter to exchange for yen at the “cash selling rate.” For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 TWD/JPY (1 TWD = 4.85 JPY). 50,000 TWD can be exchanged for about 242,718 JPY.

However, this rate is about 1-2% worse than the spot rate, plus some banks charge fixed handling fees, with total costs reaching 1,500-2,000 TWD.

Advantages: Safe and straightforward, denominations available (1,000, 5,000, 10,000 yen).
Disadvantages: Worst exchange rate, only during business hours, additional handling fees.
Suitable for: Urgent airport needs or very small amounts.

Method 2: Online exchange with in-branch cash pickup

Use bank app or online banking to convert TWD into foreign currency at the “spot selling rate,” then pick up cash at branch or foreign currency ATM. This rate is about 1% better than cash selling, costing roughly 500-1,000 TWD.

Advantages include the ability to stagger entries for average cost, especially when TWD/JPY is below 4.80. Cash withdrawal incurs additional fees (interbank 5-100 TWD), but still cheaper than direct counter exchange.

Advantages: 24-hour operation, better rates, risk diversification.
Disadvantages: Need to open a foreign currency account first, withdrawal fees apply.
Suitable for: Investors experienced in forex, with foreign currency accounts.

Method 3: Online pre-order for airport pickup

No foreign currency account needed. Fill out exchange info on bank website, then pick up with ID and transaction notice at the counter. Taiwan Bank’s “Easy Purchase” offers this service, with a handling fee of only 10 TWD (paid via Taiwan Pay), and about 0.5% better exchange rate.

This is the best pre-trip plan. Taoyuan Airport has 14 Taiwan Bank branches, 2 of which operate 24 hours, suitable for flexible pickup around flight times. Cost is about 300-800 TWD, the cheapest among the four methods.

Advantages: Best exchange rate, often no handling fee, pick up at designated airport.
Disadvantages: Need to book 1-3 days in advance, branch cannot modify.
Suitable for: Travelers with fixed plans who want to pick up at the airport.

Method 4: 24-hour foreign currency ATM withdrawal

Use a chip-enabled financial card to withdraw yen at bank foreign currency ATMs, supporting 24-hour cross-bank operations. Only 5 TWD cross-bank fee deducted from TWD account. E.SUN Bank’s foreign currency ATM allows up to 150,000 TWD per day in yen withdrawals, with no currency exchange fee.

Disadvantages include limited locations (about 200 nationwide), cash may run out during peak hours, and denominations are fixed (1,000/5,000/10,000 yen). Cost is about 800-1,200 TWD, suitable for urgent top-ups or busy professionals who can’t visit banks.

Advantages: Available 24/7, flexible, lowest cross-bank fee.
Disadvantages: Limited locations, possible out-of-stock during peak times.
Suitable for: Emergency needs, users unable to visit banks during business hours.

Cost quick reference table

Is it worthwhile to exchange yen now?

Yes, but consider staggered operations. The yen exchange rate is still within a fluctuation range. Recently, Bank of Japan Governor Ueda said hawkish comments, with market expectations of a rate hike to 0.75% on December 19 (a 30-year high), and Japanese government bond yields hitting 17-year highs of 1.93%. USD/JPY has fallen from 160 at the start of the year to 154.58 now, possibly returning to 155 short-term, but long-term forecasts suggest below 150.

For investment purposes, yen as a safe asset is suitable for hedging Taiwan stock market volatility. But watch out for risks of closing arbitrage trades, which may cause 2-5% short-term volatility. It’s recommended to buy in batches to avoid all-in exchange.

What to do after exchanging yen?

If you already have yen, don’t let it sit idle without interest. Consider these stable income options:

Yen fixed deposit: Annual interest rate 1.5-1.8%, minimum 10,000 yen, available online via E.SUN and Taiwan Bank.

Yen insurance policies: Cathay/Fubon savings insurance, guaranteed interest 2-3%, suitable for medium-term holding.

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

Forex trading USD/JPY, EUR/JPY: Capture exchange rate fluctuations, with the advantage of two-way trading, 24/7 operation, and small capital requirements.

FAQ

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

Cash rate (Cash Rate) is the buy/sell rate for physical cash, with the advantage of immediate cash receipt but 1-2% worse than spot rate, plus higher handling costs. Spot rate (Spot Rate) is the foreign exchange market rate for settlement within two business days, used for electronic transfers, more favorable but requires waiting.

Q. How much yen for 10,000 TWD?

Based on Taiwan Bank’s rate on December 10, 2025, cash selling rate is about 4.85 (1 TWD = 4.85 JPY), so 10,000 TWD ≈ 48,500 JPY. Using spot selling rate of about 4.87, it’s approximately 48,700 JPY.

Q. What ID do I need to exchange foreign currency?

For counter transactions, bring ID + passport (foreigners bring passport + residence permit). For online pre-order, also bring transaction notice. Under 20 years old need parent’s accompaniment; large amounts over 100,000 TWD may require source of funds declaration.

Q. Is there a limit for foreign currency ATM withdrawals?

From 2025, many banks have lowered daily limits to 100,000-150,000 TWD equivalent. RMB has a special limit of 20,000 RMB per day. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Final advice

Yen is no longer just travel “pocket money,” but an asset with hedging and investment value. Whether you plan to visit Japan next year or want to hedge against TWD depreciation, follow the principles of “staggered exchange + don’t leave it idle after exchanging” to minimize costs and maximize returns.

The simplest approach for beginners is “Taiwan Bank online exchange + airport pickup,” saving time and offering the best rate. After exchanging yen, if you have idle funds, move into fixed deposits or ETFs for passive income. This way, you can enjoy your trip and add a layer of protection during global market turbulence.