The Japanese Yen to Taiwan Dollar exchange rate reaches 4.85. Four different currency exchange methods are compared— which one saves the most money?

This year’s yen market has heated up, with the USD/JPY reaching 4.85. Many people plan to go abroad or hold some yen for hedging. But when it comes to exchanging yen, most still stick to the old way—going to the bank counter to exchange. Actually, this is the most disadvantageous because the exchange rate spread plus handling fees can cost several hundred NT dollars more per transaction.

We have summarized the four latest methods to exchange yen in 2025, calculated with real market rates, to show you which one is truly the most cost-effective.

Why is it worth exchanging for yen? Not just for traveling abroad

Many think exchanging yen is only for traveling abroad. In fact, the utility of yen extends far beyond that.

From a daily life perspective, shopping in Tokyo, Osaka, skiing in Hokkaido, or vacationing in Okinawa—most of these places still prefer cash, with credit card penetration around 60%. People who like buying Japanese cosmetics, fashion, or anime merchandise often need to pay directly in yen to agents or Japanese websites.

But the real value of exchanging yen lies in investment. The yen is one of the world’s three major safe-haven currencies (the other two are USD and Swiss franc). Japan’s economy is stable, debt is low, and during market turbulence, funds tend to flow into yen. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% within a week, successfully buffering a 10% decline in the stock market. For Taiwanese investors, holding some yen not only makes travel more enjoyable but also hedges against Taiwan stock risks.

Additionally, Japan has maintained ultra-low interest rates (only 0.5%) for a long time, making the yen a borrowing currency. Many investors borrow low-interest yen to invest in higher-yield USD, with a USD/JPY interest rate differential of up to 4%. When risks rise, they buy back yen to close positions—this arbitrage is a common move among savvy investors.

Is it cost-effective to exchange yen for TWD now? Batch exchanges are the safest

As of December 10, 2025, the USD/JPY rate is about 4.85, up 8.7% from 4.46 at the start of the year. The number of people exchanging yen for travel or small investments has clearly increased. Demand for currency exchange in Taiwan grew by 25% in the second half of the year, mainly due to travel recovery and hedging needs.

In the long term, the US has entered a rate-cutting cycle, which may support the yen. More importantly, the Bank of Japan is on the verge of raising interest rates—Governor Ueda recently made hawkish comments, and the market expects a rate hike to 0.75% at the December 19 meeting (a 30-year high). Japanese government bond yields have hit a 17-year high of 1.93%. These factors will boost the yen.

USD/JPY has fallen from a high of 160 at the start of the year to 154.58 now. It may rebound to 155 in the short term, but the medium to long-term forecast is below 150. Simply put, the current yen-to-TWD rate is decent, but it’s advisable to exchange in batches rather than all at once. There’s a short-term risk of arbitrage closing, with fluctuations of 2-5%. Diversifying your approach can help spread costs.

Four practical methods to exchange yen

Method 1: Bank counter exchange × Most traditional but most expensive

Bring cash NT dollars to the bank or airport counter to exchange for yen notes. It sounds convenient but is actually the most costly—because banks use the “cash selling rate,” which is 1-2% worse than the spot rate.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is about 0.2060 TWD per yen (roughly 4.85 yen per NT dollar). Some banks also charge fixed handling fees, adding to costs.

Exchanging 50,000 NT dollars this way would lose about 1,500 to 2,000 NT dollars. Only recommended if you need cash urgently at the airport or cannot use online methods.

Method 2: Online exchange × Requires foreign currency account

Use bank apps or online banking to transfer NT dollars into yen and deposit into a foreign currency account. This uses the “spot selling rate,” which is about 1% better than the cash rate. If you want cash, you can withdraw at counters or ATMs, but will incur spread and handling fees (starting around NT$100).

E.SUN Bank offers this model. After completing the exchange via app, withdrawing yen cash incurs a fee equal to the difference between spot and cash rates, minimum NT$100.

This method suits those who want to monitor rates and buy in batches when the rate dips below 4.80. It’s operable 24/7, allowing you to buy in stages, averaging costs. For 50,000 NT dollars, you might lose about NT$500 to NT$1,000.

The downside is you need to open a foreign currency account first, which some find cumbersome. But if you want to deposit yen into a fixed deposit earning interest (currently 1.5-1.8% annually), this method is very worthwhile.

Method 3: Online currency exchange for pre-travel

No need for a foreign currency account. Just fill in currency, amount, pick-up branch, and date on the bank’s official website. After remittance, go to the counter with your ID and transaction notice to pick up the yen. Taiwan Bank and Mega International Bank offer this service, with options to reserve airport branch pickup.

Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay NT$10 via Taiwan Pay), with about 0.5% better rates. The best part is Taoyuan Airport has 14 Taiwan Bank counters, two of which are open 24 hours.

Exchanging 50,000 NT dollars this way only costs about NT$300 to NT$800, making it the most economical among the four methods. The downside is you need to make an appointment 1-3 days in advance, and pickup is limited to banking hours, with no flexibility to change branches easily.

If you are a planned traveler, booking online at home and picking up at the airport is the most cost-effective.

Method 4: Foreign currency ATMs × 24-hour emergency

Use a chip-enabled debit card to withdraw yen cash from foreign currency ATMs, which operate 24/7 and allow interbank withdrawals. The fee is NT$5 per transaction when deducting from a NT dollar account. E.SUN Bank’s foreign currency ATMs limit withdrawals to NT$150,000 per day, with zero exchange spread.

However, the number of ATMs is limited (about 200 nationwide), and currency options are mostly mainstream currencies. During busy times (like at airports), cash may run out. It’s recommended not to wait until the last minute to avoid disappointment.

Exchanging 50,000 NT dollars this way costs about NT$800 to NT$1,200. This method is best for those who have no time to visit banks or need cash urgently.

Instant comparison of bank cash selling rates (as of December 10, 2025, actual rates may vary)

After exchanging yen, don’t just sit back—keep your money working

Once you have yen, don’t let it sit idle. Consider some stable or growth-oriented investments.

Yen fixed deposit is the simplest, starting from 10,000 yen, with annual interest rates of 1.5-1.8%, deposited online into E.SUN or Taiwan Bank foreign currency accounts.

Yen insurance policies are suitable for medium-term holding. Cathay or Fubon Life offer yen savings insurance with guaranteed interest rates of 2-3%.

Yen ETFs (like Yuanta 00675U, 00703) are growth options, tracking yen indices. Buying fractional shares via broker apps is convenient, suitable for dollar-cost averaging.

Forex trading involves directly trading USD/JPY or EUR/JPY on forex platforms, capturing short-term volatility. Zero commission, low spreads, two-way trading, 24-hour access—small capital can suffice.

While yen is a safe-haven, it also experiences two-way fluctuations. Rate hikes by the Bank of Japan are positive, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) could depress the yen. For investment purposes, yen ETFs (annual management fee 0.4%) can diversify risk.

Quick answers to common questions

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

Cash rate is the bank’s price for physical bills and coins, delivered on the spot, convenient for carrying but usually 1-2% worse than the spot rate plus handling fees. Spot rate is the foreign exchange market’s T+2 settlement price, used for electronic transfers and account conversions, more favorable and close to international rates.

Q: How much yen can I get for 10,000 NT dollars?

Using the formula: 【Yen = NT dollars × current TWD/JPY rate】

With Taiwan Bank’s cash selling rate of 4.85, 10,000 NT dollars can exchange for about 48,500 yen. Using the spot rate of 4.87, it’s about 48,700 yen—difference of 200 yen (roughly NT$40).

Q: What do I need to bring for counter exchange?

ID + passport. Foreigners bring passport + residence permit. Companies need business registration. If booked online, bring transaction notice. Under 20 need parental consent; amounts over NT$100,000 may require source of funds declaration.

Q: Is there a limit for foreign currency ATM withdrawals?

From October 2025, many banks have strengthened anti-fraud measures, reducing digital account limits to NT$100,000/day. Most bank cards allow NT$50,000–NT$150,000 per transaction or per day. Other bank cards usually limit to NT$20,000 per transaction. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees. During peak times, cash may run out, so plan ahead.

Final words

Yen is no longer just for “travel pocket money.” It’s an asset with hedging and small-investment value. Whether you plan to visit Japan next year or hedge against TWD depreciation by converting some funds into yen, following the principles of “batch exchange + don’t just sit on it” can minimize costs and maximize returns.

Beginners are advised to start with the simplest methods—“Taiwan Bank online exchange + airport pickup” or “foreign currency ATM”—then, based on needs, move yen into fixed deposits, ETFs, or even try forex trading. This way, you not only make travel more cost-effective but also add a layer of protection amid global market turbulence.