Malaysian Ringgit investors are also exchanging Japanese Yen? The 4 most cost-effective exchange options in Taiwan tested

Exchange Rate Bottoming Out, Japan Yen’s Golden Opportunity in 2025

As of December 10, 2025, the Taiwan dollar against the Japanese yen has reached 4.85—this is a key recent level. Compared to the early-year level of 4.46, the yen has appreciated by 8.7% over the year. For investors in Taiwan and even Malaysia, this yen rally has been quite substantial.

According to market data, Taiwan’s foreign exchange demand increased by 25% in the second half of the year. The main drivers are twofold: first, the revival of travel to Japan driving actual demand; second, increased global risk aversion allocations. Interestingly, many Malaysian investors are also paying attention to the yen, using it as a hedge against Southeast Asian currency fluctuations.

The recent hawkish comments from Bank of Japan (BOJ) 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—marking a 30-year high. Japanese government bond yields have climbed to a 17-year high of 1.93%, and USD/JPY has fallen from 160 at the start of the year to around 154.58 now. Experts predict a short-term rebound to 155, but the medium- to long-term trend points below 150.

What is the logic behind this? The yen remains one of the world’s top three safe-haven currencies (alongside USD and Swiss Franc), supported by Japan’s stable economy and low debt fundamentals. During market turbulence, funds flow into the yen for preservation of value—during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a single week, effectively buffering stock market declines.

Why Should Malaysian Investors Also Pay Attention to Yen Exchange?

The investment value of the yen goes far beyond mere travel shopping needs.

Hedging Asset Allocation: Under the ongoing depreciation pressure on the Taiwan dollar, the yen’s safe-haven attribute offers cross-regional asset protection. Malaysian investors face similar exchange rate risks, and the yen can serve as a complementary allocation.

Arbitrage Opportunities: Japan’s ultra-low interest rate environment (just 0.5%) makes the yen a “funding currency.” Many investors borrow in low-interest yen to invest in higher-yield USD (with a USD/JPY interest differential of 4.0%), and when the USD/JPY spread widens, such arbitrage trades become active.

Long-term Appreciation Potential: The BOJ’s rate hike cycle has begun, implying that the yen’s medium-term upward trend will be supported. For long-term holders, gradually entering at current levels offers marginal advantages.

Four Comprehensive Strategies for Exchanging Yen in Taiwan

Many think that just running to the bank is enough to exchange yen, but in reality, the exchange rate difference alone can cost you several cups of drinks. We tested four latest exchange channels and calculated the real costs.

Option 1: In-person cash exchange—Most traditional but highest cost

Bring cash in Taiwan dollars to a bank branch or airport counter to buy yen cash. While simple, this method uses the “cash selling rate,” usually 1-2% worse than the spot rate, plus possible fees, making it the most expensive.

For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 TWD per yen (roughly 4.85 yen per TWD). Exchanging 50,000 TWD yields about 242,500 yen.

Major banks’ cash selling rates on December 10, 2025:

Advantages: Safe, full denominations, staff assistance on-site, suitable for urgent airport needs or unfamiliar with online methods.

Disadvantages: Worse rates, limited operating hours (9:00-15:30), fees may add up.

Estimated cost: Exchanging 50,000 TWD costs about 1,500–2,000 TWD in losses.

Option 2: Online exchange + in-person withdrawal—Balanced approach

Use online banking or app to convert TWD to yen and deposit into a foreign currency account, using the “spot sell rate” (about 1% better than cash selling rate). If cash is needed, withdraw at counters or foreign currency ATMs, incurring spread and withdrawal fees.

For example, after currency conversion via E.SUN app, withdrawing yen cash incurs fees based on the difference between spot and cash rates, starting from 100 TWD.

This method is suitable for investors monitoring exchange rates and wanting to buy in batches at lower points. Taiwan Bank and Mega Bank offer such services.

Advantages: 24/7 operation, allows averaging costs over time, better rates.

Disadvantages: Need to open a foreign currency account first, withdrawal fees (interbank around 5-100 TWD), more complex.

Estimated cost: Exchanging 50,000 TWD costs about 500–1,000 TWD in losses.

Option 3: Online currency purchase + designated pickup—Best before departure

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notice to pick up in person. Taiwan Bank and Mega Bank offer this service, with appointment options at airport branches.

Taiwan Bank’s “Easy Purchase” online currency purchase is fee-free (pay only 10 TWD via TaiwanPay), with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours), making pre-departure exchange efficient.

Advantages: Better rates, often no fees, designated airport pickup, planned approach.

Disadvantages: Need to book in advance (1-3 days), pickup during bank hours, no branch changes.

Estimated cost: Exchanging 50,000 TWD costs about 300–800 TWD in losses.

Option 4: Foreign currency ATM—Most flexible 24-hour option

Use chip-enabled bank cards at foreign currency ATMs to withdraw yen cash, supporting 24-hour and interbank transactions. Deducts only 5 TWD per withdrawal from TWD account, no exchange fee.

Sinopac’s foreign currency ATMs allow withdrawals of yen from TWD accounts with a daily limit of 150,000 TWD. Other banks like CTBC have a 120,000 TWD limit.

ATM denominations are fixed at 1,000, 5,000, 10,000 yen. About 200 such ATMs are nationwide, mainly in cities and airports. Note that Japan’s ATM withdrawal services will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus).

Advantages: Instant withdrawal, high flexibility, low cross-bank fees.

Disadvantages: Limited locations and denominations, cash may run out during peak times (especially airports), not recommended to wait until last minute.

Estimated cost: Exchanging 50,000 TWD costs about 800–1,200 TWD in losses.

Comparison Table of the 4 Exchange Methods

Investment Allocation After Yen Exchange—Make Yen Funds Work

After exchanging yen, the key is not to let the money sit idle without interest. Here are four common value-added options, especially suitable for small-scale beginners:

Yen Fixed Deposit: Conservative choice. Open foreign currency accounts at E.SUN or Taiwan Bank, deposit online. Minimum 10,000 yen, annual interest 1.5–1.8%. Suitable for risk-averse.

Yen Insurance Policy: Medium-term holding. Cathay and Fubon offer yen savings insurance with guaranteed 2–3% returns, combining yield and protection.

Yen ETF Investment: Growth-oriented. Products like Yuanta 00675U track yen indices, can be bought as fractional shares via broker apps, suitable for dollar-cost averaging. Management fee 0.4% annually, diversifies risk.

Yen Forex Trading: Advanced. Trade USD/JPY or EUR/JPY directly on professional forex platforms. Both long and short positions, 24-hour trading, capturing exchange rate movements. Requires basic risk understanding.

FAQs

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

Cash rate (Cash Rate) applies to physical cash transactions, offering convenience but usually 1-2% worse than the spot rate, with higher fees.

Spot rate (Spot Rate) applies to electronic transfers, bank settlements, import/export, or personal foreign currency accounts. It’s more favorable, close to international market prices, but settlement takes T+2 days.

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

Based on Taiwan Bank’s December 10, 2025, rate: about 4.85 (1 TWD = 4.85 yen), so 10,000 TWD ≈ 48,500 yen.

Using the spot rate (about 4.87), about 48,700 yen, roughly 200 yen more (equivalent to about 40 TWD).

Are there limits on foreign currency ATM withdrawals?

Yes, limits vary by bank and recent regulations. Latest rules:

Post-2025, daily limits mostly reduced to 100,000–150,000 TWD. It’s advisable to split withdrawals or use your bank’s card to avoid cross-bank fees.

What documents are needed for in-person currency exchange?

For foreign currency cash transactions, Taiwanese nationals need ID card + passport; foreigners need passport + residence permit. For corporate exchanges, business registration is required.

If booking online in advance, bring transaction notice. Under 20s need parental consent and ID; large amounts (>10万 TWD) may require source of funds declaration.

Final Tips: Use Batch Strategies to Minimize Costs

In summary, yen is no longer just for travel “pocket money,” but also a safe-haven asset and small-scale investment. Both Taiwanese and Malaysian investors should follow the principles of “batch exchange + don’t leave money idle” to minimize costs and maximize returns.

We recommend beginners start with the simplest methods like “Taiwan Bank online currency purchase + airport pickup” or “foreign currency ATM,” then gradually move into fixed deposits, ETFs, or forex trading based on needs. This way, you can enjoy more cost-effective travel and add a layer of protection during global market turbulence.

While the yen remains a strong safe-haven, it also carries two-way volatility risks. Rate hikes are positive, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) may suppress the yen. Long-term holders need not worry about short-term fluctuations; gradual accumulation remains the best strategy.