How to get the best exchange rate from TWD to JPY? A comparison of the actual costs of four major exchange channels

NTD to JPY at 4.85: Is this a good time to enter?

In December 2025, the Japanese Yen exchange rate once again becomes a focus for investors. The NTD against JPY has risen from 4.46 at the start of the year to 4.85, an 8.7% increase in just one year. Many are starting to seriously consider exchanging for JPY—whether for travel abroad or as an asset hedge. But the key question is: with the same 50,000 NTD, choosing the wrong exchange method could cost an extra 1,500-2,000 NT. We have tested the four main JPY exchange channels in Taiwan and will show you the actual costs.

Why is JPY worth paying attention to? Not just for travel “pocket money”

In the global forex market, JPY is one of the three major safe-haven currencies alongside USD and CHF. The reasons are deep:

Stable economic fundamentals
Japan maintains low debt and low inflation over the long term, with a well-developed economic structure. During market volatility (e.g., Russia-Ukraine conflict in 2022), international funds flooded into JPY for risk aversion—appreciating 8% in a week, enough to offset stock market declines.

Interest rate policies create arbitrage opportunities
Recently, the Bank of Japan’s hawkish comments have pushed expectations of rate hikes to 80%, with Governor Ueda hinting at a possible increase to 0.75% at the December 19 meeting (a 30-year high). Although rates are still low, this supports long-term JPY appreciation. If you hold JPY fixed deposits (annual interest rate 1.5-1.8%), you can enjoy both interest and currency appreciation gains.

For Taiwanese investors, exchanging JPY for HKD or other currencies to diversify is a smart move under the pressure of TWD depreciation.

Practical testing: Cost differences among four exchange methods

Method 1: Bank counter cash exchange—most traditional but most expensive

Carry NT$ cash to a bank branch or airport counter to exchange for JPY cash. Simple operation, but using “cash selling rate,” usually 1-2% worse than the international market rate.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 (i.e., 1 TWD = 4.85 JPY). Some banks charge an additional 100-200 NT handling fee, making this the highest cost.

Suitable for: Urgent airport needs, unfamiliar with online methods

Estimated cost for 50,000 NT exchange: Loss of 1,500-2,000 NT

Method 2: Online currency exchange with cash withdrawal—flexible and moderate cost

Use bank app or online banking to convert TWD to JPY in a foreign currency account (using favorable “spot sell rate”), then choose to withdraw cash or keep electronic. If cash is needed, extra handling fees (about 5-100 NT) apply at counters or ATMs.

Advantage: can enter the market gradually, locking in lower rates. Taiwan’s forex demand increased by 25% in the second half of the year, mainly from investors spreading out their purchases to avoid risks of a single large exchange.

Suitable for: Those with forex investment experience, wanting to average costs; can also transfer into JPY fixed deposits or ETFs for appreciation

Estimated cost for 50,000 NT: Loss of 500-1,000 NT

Method 3: Online currency exchange, direct airport pickup—smartest way for travel prep

No need to open a foreign currency account. Fill in exchange amount, pickup branch, and date on the bank’s website. After remittance, go to the branch with ID and transaction notice to pick up. Taiwan Bank’s “Easy Purchase” has no handling fee (pay only 10 NT via TaiwanPay), with about 0.5% better rates.

Taoyuan Airport has 14 Taiwan Bank outlets (2 open 24 hours). Pre-arranged pickup saves time and effort.

Suitable for: Planned travelers who confirm their amount before departure

Estimated cost for 50,000 NT: Loss of 300-800 NT

Method 4: Foreign currency ATM withdrawal—most flexible but limited

Use a chip-enabled bank card at foreign currency ATMs to withdraw JPY, available 24/7. E.SUN Bank’s foreign currency ATMs have a daily limit of 150,000 NT, with only 5 NT cross-bank fee. Drawback: only about 200 ATMs nationwide, and cash may run out during peak times (e.g., airports).

Note: Japan ATM withdrawal services will be adjusted at year-end, requiring international cards (Mastercard/Cirrus).

Suitable for: Those without time for counter exchange, needing immediate cash

Estimated cost for 50,000 NT: Loss of 800-1,200 NT

Exchange rate trend analysis: Is now a good time to exchange? Staggered entry is safest

Current market situation
USD/JPY has fallen from a high of 160 at the start of the year to around 154.58, a 5% appreciation of JPY. TWD against JPY remains stable between 4.83-4.87.

Short-term volatility expected
BOJ rate hikes are positive for JPY, but global arbitrage unwinding or geopolitical risks could cause a 2-5% pullback. It’s advised not to exchange all at once, but to stagger entries:

• First batch: 50% now (around 4.85)
• Second batch: 30% if it rises above 4.90, then pause and wait for a pullback
• Last 20%: keep flexibility for sudden needs

Long-term allocation logic
JPY as a safe-haven asset is suitable for hedging Taiwan stock volatility. For pure investment appreciation, consider pairing with JPY fixed deposits (annual 1.5-1.8%) or ETFs (e.g., Yuanta 00675U, annual management fee 0.4%), rather than holding cash alone.

Post-exchange appreciation options

Once you have JPY, don’t let your money sit idle without interest. Here are four beginner-friendly small investments:

1. JPY Fixed Deposit
E.SUN Bank or Taiwan Bank foreign currency accounts, starting from 10,000 JPY, with 1.5-1.8% annual interest, showing returns in 3 months.

2. JPY Insurance Policy
Cathay or Fubon savings insurance, with guaranteed 2-3% interest, suitable for medium-term holding (5-10 years) for steady growth.

3. JPY ETFs
Funds tracking JPY indices like Yuanta 00675U, bought as fractional shares via brokerage apps, suitable for dollar-cost averaging and risk diversification.

4. Forex Swing Trading
Trade JPY pairs (USD/JPY, EUR/JPY) on forex platforms, with 24-hour trading, capturing short-term fluctuations.

Quick FAQs

Q. How big is the difference between cash rate and spot rate?
Cash rate (Current Rate) is usually 1-2% worse than spot rate (Spot Rate). Cash rate applies to physical cash, spot rate to electronic transfers. The difference is the bank’s profit margin. Choosing online exchange or ATM withdrawal can reduce this gap.

Q. How much JPY for 10,000 NT?
Based on December 10, 2025, rate of 4.85, about 48,500 JPY (using spot rate, possibly up to 48,700 with better rates). Cash selling rate might give around 48,300 JPY.

Q. What to bring for counter exchange?
ID card + passport (foreigners bring passport + residence permit). If pre-booked online, bring transaction notice. For amounts over 100,000 NT, declare source of funds. Under 20, bring guardian.

Q. What is the daily limit for foreign currency ATM withdrawal?
Varies by bank (post-2025 adjustments): CTBC about 120,000 NT/day, Taishin 150,000 NT/day, E.SUN 50,000 NT/transaction (up to 150,000 NT/day including debit). It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Final advice

JPY is no longer just “pocket money for travel,” but also a tool for risk hedging and potential gains.

Core strategy: Staggered exchange + don’t leave the money idle after exchanging. Beginners should start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then flexibly adjust based on amount and timing. After exchanging, immediately transfer into fixed deposits or ETFs for growth—this reduces exchange costs and adds a layer of protection during global market fluctuations. Now is a good time to enter—if you choose the right method, investing in JPY is no longer a zero-sum game.