Japanese Yen Exchange Guide: 4 Major Channels Cost Comparison, Bank Exchange Timing and Selection Guide

By the end of 2025, the Taiwanese dollar against the Japanese yen reached a level of 4.85, reigniting the trend of travel to Japan and asset allocation in yen. But did you know? The cost of exchanging yen can differ by over 30%. Choosing the right channels can save you thousands of dollars. This article provides an in-depth analysis of four currency exchange methods, their advantages and disadvantages, and how to flexibly respond during banking hours and non-business hours.

Why has the yen become a must-exchange foreign currency for Taiwanese?

When it comes to foreign currencies, Taiwanese people first think of the Japanese yen. This is not only due to travel needs but also related to daily life and financial strategies.

Daily consumption: essentials for travel, shopping代理, studying abroad

• High demand for travel cash: Over 40% of Japanese merchants still prefer cash; small shops in Tokyo, Osaka, and Hokkaido often do not accept cards, especially ski resorts and traditional shopping districts where cash is almost mandatory.
• Direct payment channels for shopping代理 and online shopping: Platforms for Japanese cosmetics, anime merchandise, clothing, etc., usually require yen for checkout; shopping代理 often require remittance in yen beforehand.
• Necessities for students and working holidaymakers: Locking in exchange rates in advance can avoid additional costs caused by sudden fluctuations.

Financial aspect: a new option for hedging assets

Global three major safe-haven currencies remain stable

The yen, along with the US dollar and Swiss franc, forms a safe-haven triangle. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, while global stock markets fell by 10%. For Taiwanese stock investors, holding yen is akin to creating a “downside protection shield.”

Arbitrage and interest rate spread trading opportunities

Japan’s ultra-low interest rate (0.5%) makes it an excellent “funding currency.” Investors often borrow yen at low interest, convert to USD for arbitrage (US-Japan interest rate spread reaching 4.0%), and close positions for profit when market risks rise.

Four major yen exchange channels: a full comparison of costs and convenience

Many think that visiting a bank branch is the only option, but they may not realize that the difference between cash exchange rates and spot rates can eat into several fees. We analyze the real costs of each channel with actual data.

Option 1: Bank counter cash exchange — traditional but more expensive

Carry Taiwanese dollar cash to a bank branch or airport counter to exchange for cash, using the “cash selling rate.” This rate is about 1-2% worse than the spot rate, plus some banks charge handling fees, making it the most costly.

Note on bank exchange hours: Most banks operate until 15:30 on weekdays; only some branches are open on weekends and holidays. Airport branches like Taiwan Bank offer 24-hour service, but not all are open around the clock.

Example data (December 10, 2025):

• Taiwan Bank cash selling rate: 1 yen = 0.2060 TWD (1 TWD = 4.85 yen)
• E.SUN Bank cash selling rate: 1 yen = 0.2067 TWD, plus 100 TWD handling fee
• Cost for exchanging 50,000 TWD: loss of 1,500-2,000 TWD

Suitable scenarios: unfamiliar with online operations, need for small emergency cash (e.g., upon arrival in Japan and cash is insufficient), or prioritize safety.

Option 2: Online currency transfer — suitable for long-term investors

Use bank app or online banking to convert TWD into yen and deposit into a foreign currency account, enjoying the “spot sell rate” discount (about 1% better than cash). If cash withdrawal is needed, do so at counters or via foreign currency ATMs, incurring additional fees (around 100 TWD).

This method is especially suitable for phased entry, observing exchange rate trends. For example, when TWD/JPY drops below 4.80, add more at a low point, averaging the cost over time.

Advantages: 24/7 operation, can combine with yen fixed deposits (annual interest 1.5-1.8%) to increase returns.

Cost estimate (50,000 TWD, including cash withdrawal): loss of 500-1,000 TWD

Ideal for: those with foreign currency accounts, familiar with investment operations, planning long-term yen holdings.

Option 3: Online appointment currency exchange — best for airport pickup

No need to open a foreign currency account in advance; book directly on the bank’s website (usually 1-3 days ahead), select pickup branch and date. Taiwan Bank’s “Easy Purchase” service has no handling fee (pay via TaiwanPay, only 10 TWD), with a 0.5% exchange rate discount.

Flexible bank exchange hours: Although pickup is limited by bank hours, nationwide airport branches are available. Taoyuan Airport has 14 Taiwan Bank counters, 2 of which operate 24 hours, avoiding queues during peak times.

Cost estimate (50,000 TWD): loss of 300-800 TWD

Suitable for: travelers with clear plans, wanting to pick up cash directly at the airport without visiting a bank; or investors who plan ahead.

Option 4: Foreign currency ATM withdrawal — most convenient emergency option

Use a chip-enabled bank card to withdraw yen cash at foreign currency ATMs, with interbank fee of only 5 TWD (deducted directly from TWD account). Available 24/7, no bank exchange hours restrictions.

Note: Limited locations (~200 nationwide), major currencies available but small denominations may be lacking. During peak times (holidays, etc.), cash may run out; plan accordingly or withdraw from multiple locations.

Limitations: Fubon Bank card limit is 150,000 TWD per day; E.SUN Bank card limit is 150,000 TWD per day (including credit card); cross-bank cards generally 50,000-100,000 TWD.

Cost estimate (50,000 TWD): loss of 800-1,200 TWD

Suitable for: urgent needs, busy professionals, or as a backup plan.

Summary of four exchange options

Is exchanging yen now worthwhile? Phased entry is the key

On December 10, 2025, the TWD/JPY rate was 4.85. Compared to 4.46 at the start of the year, the yen appreciated by 8.7% over the year, making exchange gains quite attractive. Especially amid TWD depreciation pressures, many investors are considering yen as a hedging tool.

Exchange rate outlook and entry strategy

BOJ Governor Ueda Kazuo recently signaled a hawkish stance, with market rate hike expectations rising to 80%. The December 19 meeting is expected to raise rates by 0.25 basis points to 0.75% (a 30-year high), with Japanese government bond yields reaching 17-year highs of 1.93%. This supports the yen.

Meanwhile, USD/JPY has fallen from a high of 160 at the start of the year to 154.58 now, with a short-term test of 155 possible, but the medium to long-term trend is expected below 150. The global easing cycle has begun, keeping the yen relatively strong.

Is now a good time to exchange yen? Absolutely, but proceed in phases. Avoid exchanging all at once; instead, buy in weekly or monthly batches to average the cost. Short-term volatility risks include arbitrage closing positions, which may cause 2-5% fluctuations.

Post-exchange yen value-adding options

Don’t let yen sit idle without interest. Based on risk appetite, consider the following allocations:

Conservative: Yen fixed deposit

• Open online with E.SUN or Taiwan Bank foreign currency accounts
• Minimum 10,000 yen, annual interest 1.5-1.8%
• Suitable for 3-6 months holding

Medium-term: Yen insurance policy

• Cathay, Fubon savings insurance, guaranteed interest 2-3%
• Hold for 1-3 years, with protection features

Growth: Yen ETF

• Yuanta 00675U (tracking yen index), 00703, etc.
• Buy fractional shares via broker app, suitable for periodic investment
• Management fee 0.4% annually, balanced risk and return

Advanced: Forex swing trading

• Trade USD/JPY or EUR/JPY directly
• Long and short, 24/7 trading, low costs
• Suitable for investors with technical analysis skills

Common questions about yen exchange — quick answers

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

Cash rate is the bank’s buy/sell rate for physical banknotes, paid on the spot. Usually 1-2% worse than the spot rate, plus higher handling fees. Spot rate is the T+2 settlement rate in forex market, used for account transfers, import/export, electronic transactions, and closer to international market prices.

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

Calculation: Yen amount = TWD amount × current rate

Using Taiwan Bank’s cash selling rate of 4.85 on December 10, 2025: 10,000 TWD ≈ 48,500 yen. Using spot rate 4.87: ≈ 48,700 yen.

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

Varies by bank. CTBC: single transaction limit equivalent to 120,000 TWD, daily limit 120,000 TWD; Taishin: single and daily limit 150,000 TWD; E.SUN: single 50,000 TWD, daily 150,000 TWD (including credit); cross-bank cards generally 50,000-100,000 TWD.

Q: What documents are needed for in-person currency exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit; company representatives: business registration certificate. For online booking, additional transaction notice may be required. Under 20: parent’s consent and signature. Large exchanges (>10,000 TWD) may require source of funds declaration.

Q: Do bank exchange hours differ?

Most banks operate 9:00-15:30 on weekdays; many are closed on weekends. Airport branches like Taiwan Bank and Mega Bank offer longer hours, with some 24-hour locations at Taoyuan and Songshan airports. Check schedules before travel, especially during holidays.

Summary: Yen is now a must-have for investment and consumption

Yen is no longer just for travel pocket money but also a hedging and investment asset. Following principles of phased exchange and not sitting idle after exchanging can minimize costs and maximize returns.

For beginners:

1. Use online appointment booking + airport pickup for optimal rates and convenience
2. Or choose ATM withdrawal as a backup plan
3. After exchanging yen, allocate into fixed deposits, ETFs, or swing trading based on timeline
4. Take advantage of staggered bank exchange hours (e.g., after work via ATM, before holidays via online booking)

Whether for travel or asset hedging, mastering exchange strategies can add an extra layer of protection amid global market fluctuations and allow you to enjoy currency gains.