Japanese Yen Exchange Guide: Cost Comparison of 4 Major Channels, Is It Worth It in 2025? Let's clarify once and for all

Why Should You Exchange for Yen Now?

When it comes to foreign currency exchange, many Taiwanese people’s first thought is usually the yen. But the reasons behind this go far beyond the surface of “liking to visit Japan.”

From daily expenses, traveling to Japan, purchasing Japanese cosmetics and beauty products, online shopping for anime merchandise, to long-term studying, working, and working holidays, yen is indispensable. Japan’s cash culture remains strong, with only 60% credit card penetration; cash is still the main payment method.

More importantly, the role of the yen in the financial markets. As one of the world’s three major safe-haven currencies (along with the US dollar and Swiss franc), the yen tends to rise against the trend during market turmoil. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a single week, effectively buffering stock market declines. For Taiwanese investors, holding yen isn’t just for convenience when traveling; it’s also an asset allocation for hedging Taiwan stock risks.

Furthermore, Japan’s ultra-low interest rate policy (currently just 0.5%) makes the yen a “funding currency.” Many international investors borrow low-interest yen to exchange for higher-yield currencies (such as USD, with a spread of 4.0%) for arbitrage trading. This market structure gives the yen long-term investment value.

End-of-2025 Yen Exchange Rate Status: Up 8.7%, but Should Enter in Batches

As of December 10, 2025, the TWD to JPY exchange rate is 4.85. This means 10,000 TWD can be exchanged for about 48,500 yen, and 20,000 TWD for roughly 97,000 yen.

Compared to the beginning of the year at 4.46, the yen has appreciated about 8.7%, offering considerable gains for currency exchangers. Especially under the continuous depreciation pressure on the TWD, the timing to allocate yen has become quite favorable.

However, the current situation isn’t just a straightforward rise. According to recent market trends, the hawkish comments from Bank of Japan Governor Ueda Kazuo have pushed market expectations of rate hikes to 80%, with a 0.25 bps increase to 0.75% expected at the December 19 meeting (a 30-year high). Japanese bond yields have hit a 17-year high of 1.93%. The US entering a rate-cut cycle has further strengthened the yen.

USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now. In the short term, it may rebound to 155, but the medium to long-term trend points below 150. Based on this, we suggest entering in batches to avoid investing all funds at once, reducing short-term volatility risk.

Four Major Ways to Exchange Yen in Taiwan: Cost and Convenience Analysis

Many think exchanging yen just involves going to the bank counter. But in reality, the difference in exchange rates alone can cost you hundreds of TWD. We’ve summarized four latest exchange methods, calculating actual costs based on real rates.

1. Online Exchange + Airport Pickup: The Most Recommended Pre-Travel Solution

No need to open a foreign currency account beforehand. Simply fill in currency, amount, branch, and date on the bank’s website. After completing the online transfer, bring your ID and transaction notice to the counter to receive cash. Both Taiwan Bank and Mega International Bank offer this service, with reservation options for airport branches.

Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay with TaiwanPay for only TWD 10), with about 0.5% better exchange rate, saving you costs when buying. Taoyuan Airport has 14 Taiwan Bank counters, 2 of which operate 24 hours, ideal for travelers.

Cost Estimate (based on TWD 50,000): Loss of TWD 300–800

Suitable for: Planning travelers who book in advance and want to withdraw directly at the airport.

2. Foreign Currency ATM Cash Withdrawal: Quick Option for Urgent Needs

Use a chip-enabled financial card to withdraw yen cash at foreign currency ATMs outside banks, available 24 hours. The key advantage is that cross-bank withdrawal fee from TWD accounts is only TWD 5, with no currency exchange fee. Mega International Bank’s foreign currency ATMs have a daily limit of the equivalent of TWD 150,000—more than enough for 20,000 yen.

Disadvantages include limited locations (about 200 nationwide) and fixed denominations of 1,000, 5,000, and 10,000 yen. Cash can run out during peak times (e.g., before flight departures), so it’s not recommended as a last-minute solution.

Cost Estimate (based on TWD 50,000): Loss of TWD 800–1,200

Suitable for: People without time to visit banks, or those needing last-minute withdrawals.

3. Online Exchange + In-Person or ATM Withdrawal: The Top Choice for Forex Investors

Use online banking or app to convert TWD into yen and deposit into a foreign currency account, using the “spot sell rate” (about 1% better than cash selling rate). If cash is needed later, can withdraw in person or via foreign currency ATM, but there will be a spread fee (starting around TWD 100).

Advantages include 24-hour operation and the ability to buy in batches to average costs. Monitoring the exchange rate when it’s low (e.g., TWD/JPY below 4.80) and entering gradually can effectively lower the average cost. E.SUN Bank, Taiwan Bank, etc., offer this service, and after transfer, you can also move funds into yen fixed deposits (current annual interest ~1.5-1.8%).

Cost Estimate (based on TWD 50,000): Loss of TWD 500–1,000

Suitable for: Those with forex experience, planning long-term holding of yen, or interested in investments like fixed deposits or ETFs.

4. In-Person Cash Exchange: Traditional but Highest Cost

Directly carry TWD cash to a bank branch or airport counter to exchange for yen cash. Though simple, the cost is highest using the “cash selling rate” (about 1-2% higher than spot). For example, Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 (about TWD 4.85 per yen), with some banks charging additional fixed handling fees.

Cost Estimate (based on TWD 50,000): Loss of TWD 1,500–2,000

Suitable for: Those unfamiliar with online procedures or needing small, temporary cash exchanges.

Mainstream Banks’ Yen Cash Buy/Sell Rates and Fees Comparison

Below are the cash selling rates and counter service fees as of December 10, 2025 (for reference only, check the bank’s official website):

Foreign Currency ATM Withdrawal Limits

From October 2025, many banks have strengthened anti-fraud measures, and some account limits have been reduced. The latest regulations are:

Value-Adding Options After Acquiring Yen

Once you have yen, don’t let it sit idle without interest. Based on investment needs, here are some options:

Yen Fixed Deposit (Conservative): Open an foreign currency account at E.SUN or Taiwan Bank and deposit online. Minimum 10,000 yen, annual interest 1.5-1.8%. Suitable for risk-averse investors.

Yen Insurance Policy (Medium-term Hold): Purchase savings insurance from Cathay or Fubon Life, with guaranteed interest rates of 2-3%, offering both savings and protection.

Yen ETFs (Growth-oriented): Like Yuanta 00675U, tracking yen index, can buy fractional shares via broker apps for diversification.

Forex Trading (Swing Trading): Directly trade USD/JPY or EUR/JPY on forex platforms to catch market swings. Suitable for experienced traders.

Quick FAQs

Q: What’s the difference between cash rate and spot rate?
Cash rate is the bank’s buy/sell rate for physical banknotes, convenient but higher cost (1-2%). Spot rate is the foreign exchange market’s T+2 delivery rate, used for bank transfers and more favorable, but requires waiting for settlement.

Q: How much yen can I get for TWD 10,000?
Using the current cash sell rate of 4.85, TWD 10,000 ≈ 48,500 yen. With the spot rate of 4.87, about 48,700 yen. The difference is roughly 200 yen.

Q: What do I need to bring for in-person currency exchange?
Taiwanese nationals: ID + passport. Foreigners: passport + residence permit. If booked online, bring transaction notice. Under 20 years old: parental consent. For large amounts over TWD 100,000, you may need to declare funds source.

The Best Strategies for Exchanging Yen

The yen has evolved from being just “travel pocket money” to an asset with hedging and investment value. Whether you’re planning a trip next year or leveraging the TWD depreciation to hedge by converting to yen, following these principles—“batch exchange + don’t leave the position idle”—can reduce costs and enhance returns.

Newcomers are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATMs,” then transfer funds into fixed deposits, ETFs, or forex swing trading based on needs. Smart exchange not only makes traveling more affordable but also adds a layer of risk buffer during market volatility.