How to get the best exchange rate from TWD to JPY? Four major channels tested and compared + Korean Won benchmark analysis

Year-end travel season is coming, and many people are asking: Is it cost-effective to exchange yen now? In December, the NT$ to JPY exchange rate has surged to 4.85, up from 4.46 at the beginning of the year—a gain of over 8%. But the real issue isn’t just the exchange rate fluctuations, rather whether you’ve chosen the wrong currency exchange channel, which could cost you an extra NT$2,000 each time. This article breaks down the latest four methods of currency exchange, compares them using the Korean won exchange rate, and helps you see the cost differences at a glance.

Why is it worth exchanging for JPY? Not just for travel money

When it comes to exchanging foreign currency, Taiwanese people’s first thought is usually Japanese yen. The reasons go beyond just loving to visit Japan; from daily life to investment, there is real demand for yen:

Living scenarios: Shopping in Tokyo, skiing in Hokkaido, vacationing in Okinawa—all mostly cash-only (credit card penetration is only 60%). Japan shopping agents and online shopping transactions often require direct yen payments. Students working abroad or studying abroad also need to exchange currency in advance to avoid sudden exchange losses.

Investment perspective: The yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). Japan’s economy is stable, and debt is manageable. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, successfully buffering stock market declines. For Taiwanese investors, exchanging for yen is like buying insurance against Taiwan stock market risks.

Additionally, Japan’s ultra-low interest rate policy (only 0.5%) makes the yen a “funding currency.” Arbitrage traders borrow low-interest yen to invest in higher-yield USD (the USD/JPY interest rate differential reaches 4.0%), which also boosts market demand for yen. In comparison, while the Korean won exchange rate also fluctuates, its safe-haven attribute is far less stable than the yen.

Four ways to exchange yen: practical cost analysis

Many think currency exchange only involves going to the bank, but the difference between in-branch and online rates can be enough to buy several cups of bubble tea. Here’s a real-world comparison:

Option 1: In-branch cash exchange (most traditional, highest cost)

Bring NT$ cash directly to the bank or airport counter to exchange for yen. Simple to operate, but uses the “cash selling rate,” which is 1-2% worse than the market spot rate. For NT$50,000, the exchange difference alone costs NT$1,500–2,000.

Taiwan Bank’s cash selling rate as of December 10, 2025: 1 yen = NT$0.2060 (i.e., NT$1 = 4.85 yen)

Some banks also charge an additional NT$100–200 handling fee, increasing total costs. Suitable for urgent small amounts at the airport, but not cost-effective for long-term currency exchange.

Suitable for: Those unfamiliar with online operations or needing small emergency amounts.

Option 2: Online currency exchange + cash withdrawal in yen (advanced users’ choice)

Use the bank app to convert at the “spot selling rate,” then withdraw cash via foreign currency ATM or counter. The rate is about 1% better than in-branch, but withdrawal incurs a fee (minimum NT$100). Good for gradual entry and observing exchange rate trends.

E.SUN Bank and Mega International support this service, with a minimum of 10,000 yen. You can also lock in a fixed deposit with an annual interest rate of about 1.5–1.8%. Cost for NT$50,000 is about NT$500–1,000, cheaper than in-branch.

Suitable for: Those experienced with forex, using foreign currency accounts, or interested in yen fixed deposits or ETFs.

Option 3: Online currency settlement + airport pickup (best pre-departure plan)

No need for a foreign currency account. Fill in amount, branch, and pickup date on the bank’s website, then pick up at the counter. Taiwan Bank’s “Easy Purchase” online currency settlement is fee-free (NT$10 if paid via TaiwanPay), with a 0.5% exchange rate advantage. You can reserve at airport branches (Taoyuan Airport has 14 Taiwan Bank outlets, 2 open 24 hours).

NT$50,000 costs only NT$300–800, plus you can pick up cash directly at the airport before departure, saving time and effort. The downside is you need to book 1–3 days in advance; changes are not allowed.

Suitable for: Planning travelers who want to pick up cash at the airport.

Option 4: Foreign currency ATM withdrawal (quick emergency solution)

Use a chip-enabled financial card at ATMs for instant withdrawal, available 24/7. Cross-bank withdrawals cost NT$5 per transaction. E.SUN Bank’s foreign currency ATMs allow up to NT$150,000 equivalent yen per day, with no exchange fee. Drawbacks include limited locations (~200 nationwide), fixed denominations (1,000/5,000/10,000 yen), and possible cash shortages during peak times.

NT$50,000 costs about NT$800–1,200. Suitable for sudden needs when visiting a bank isn’t feasible.

Cost comparison table of the four options

Is it really cost-effective to exchange yen now?

As of December 10, NT$ to JPY is 4.85, up 8.7% from the start of the year. In the second half, Taiwan’s currency exchange demand increased by 25%, mainly due to travel recovery and hedging needs.

However, note that the yen is volatile in the short term. The Bank of Japan recently signaled a hawkish stance, with expectations to raise interest rates to 0.75% by mid-December (a 30-year high). Japanese government bond yields have hit a 17-year high of 1.93%. USD/JPY has fallen from 160 at the start of the year to around 154.58 now. Long-term forecasts suggest it may go below 150, but in the short term, it could oscillate between 155 and 2-5% swings.

Advice: Do not exchange all at once; consider staggered entries. While the yen is a safe-haven, arbitrage positions may reverse when closing. For pure investment, consider yen fixed deposits (annual yield 1.5–1.8%) or yen ETFs (like Yuanta 00675U, management fee 0.4%) to diversify risk.

Other currencies for exchange: Korean won comparison

Many also consider exchanging Korean won or other Asian currencies. Compared to yen, the cost of converting won is similar, but its safe-haven properties are weaker. It is mainly suitable for travel in Korea. Won liquidity is lower than yen, with fewer withdrawal points. Unless you have a clear Korean spending plan, it’s not recommended as an investment currency.

Advanced uses after exchanging yen

Don’t let your money sit idle without interest. Here are four options suitable for small-scale beginners:

1. Yen fixed deposit: Most conservative, with 1.5–1.8% annual interest, starting from 10,000 yen, available via E.SUN or Taiwan Bank apps.

2. Yen savings insurance: Medium-term holding, with Cathay or Fubon Life offering yen policies with guaranteed 2–3% interest.

3. Yen ETFs: Growth-oriented, Yuanta 00675U tracks yen index, can buy fractional shares via broker apps, suitable for dollar-cost averaging.

4. Yen trading: For swing traders, use forex platforms to trade USD/JPY or EUR/JPY, with long/short options, 24/7 operation, requiring minimal capital.

Quick FAQs

Q: What’s the difference between cash exchange rate and spot rate?
Cash rate is the bank’s rate for physical cash, paid on the spot, usually 1–2% worse than the market spot rate. Spot rate is the market buy/sell price, settled within 2 business days, more favorable but requires waiting.

Q: How much yen do I get for NT$10,000?
Using the formula: Yen amount = NT$ amount × current rate. At 4.85, NT$10,000 ≈ 48,500 yen (using in-branch rate). At spot rate 4.87, about 48,700 yen—difference of roughly 200 yen.

Q: What do I need to bring for in-branch exchange?
ID card + passport (foreigners bring passport + residence permit). Under 20 needs parental consent. Online reservation requires transaction notice. For large amounts (over NT$100,000), may need to declare source of funds.

Q: What’s the limit for foreign currency ATM withdrawals?
Banks have adjusted limits, generally NT$100,000–150,000 per day equivalent. Use your own card to avoid cross-bank fees (NT$5 per transaction). Peak times may run out of cash; plan ahead.

Conclusion

Yen is no longer just travel pocket money; it’s also a hedge and investment tool. Whether traveling or hedging funds, follow the principles of “staggered exchange + not leaving money idle” to minimize costs and maximize gains. Beginners can start with Taiwan Bank’s online settlement + airport pickup or foreign currency ATMs, then move into fixed deposits or ETFs based on needs. This way, you can enjoy your trip and add a layer of protection amid global market fluctuations.