Japanese Yen Exchange Quick Guide for Beginners: Which of the 4 Methods Saves the Most Money?

In December 2025, the TWD to JPY exchange rate has surged to 4.85. Is this a good time to buy?

If you’re planning to travel to Japan or want to allocate assets in Japanese yen, the key isn’t “when to exchange,” but “how to exchange”—because choosing the wrong exchange channel alone could cost you an extra 1,500-2,000 TWD on 50,000 TWD.

We’ve compared the latest 4 options to help you find the most suitable currency exchange method in just 1 minute.

Why is it worth exchanging for Japanese yen?

Don’t rush to exchange before understanding why.

Travel and consumption: After visiting Tokyo, Osaka, and Hokkaido, many places still prefer cash (credit card penetration is only 60%), and purchasing Japanese cosmetics and clothing often requires direct yen payments.

Hedging assets: The yen is one of the three major safe-haven currencies alongside USD and CHF. When Taiwan stocks fluctuate, the yen often appreciates counter-cyclically (during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, buffering stock declines). Exchanging for yen is like buying insurance for yourself.

Exchange rate gains: TWD has depreciated since the beginning of the year, while the yen has appreciated about 8.7%. Plus, the Bank of Japan is expected to raise interest rates to 0.75% in December (a 30-year high), supporting the yen long-term.

What’s the most cost-effective way to exchange?

Don’t foolishly run to the bank counter—these 4 methods vary greatly in cost—

1. Bank counter exchange (most expensive, not recommended)

Bring cash TWD to the branch to buy cash JPY. Simple operation, but uses the “cash selling rate,” which is 1-2% worse than the spot rate. On 50,000 TWD, you lose about 1,500-2,000 NT dollars.

Only suitable for: urgent needs at the airport or people unfamiliar with online methods

2. Online exchange + ATM withdrawal (most flexible)

This is favorite among office workers—convert TWD to JPY via bank app into a foreign currency account (using a better “spot rate”), then withdraw cash directly from JPY ATMs or counters when needed.

Advantages: 24-hour operation, can buy in installments, exchange loss only 500-1000 NT dollars. Disadvantages: need to open a foreign currency account first, and cross-bank withdrawal fees apply.

Only suitable for: Those with some forex knowledge, planning to hold yen long-term

3. Online currency settlement + airport pickup (most convenient)

Services like Taiwan Bank’s “Easy Purchase” allow you to fill in currency, amount, and designated airport branch online, then pick up with ID the next day or same day. Exchange rate is about 0.5% better, and fees are often waived (Taiwan Bank also supports Taiwan Pay, paying only NT$10).

Cost on 50,000 TWD drops to 300-800 NT dollars. Disadvantages: need to book 1-3 days in advance, and pickup is only during bank hours.

Only suitable for: Travelers with plans before departure who want to withdraw directly at the airport

4. Foreign currency ATM instant withdrawal (fastest)

Use a chip-enabled bank card 24/7 at JPY ATMs to withdraw cash in yen, with only NT$5 cross-bank fee deducted from your TWD account. Daily limit around 150,000 TWD (varies by bank), no exchange fee.

Disadvantages: limited ATM locations (about 200 nationwide), cash may run out during peak times, fixed denominations (only 1,000, 5,000, 10,000 yen).

Only suitable for: Those who have no time to visit banks and need immediate cash

Cost comparison table

Beginner tip: For small travel amounts (5-20 million TWD), “online settlement” offers the best value, or combine with “JPY ATM” for emergency backup.

Is now a good time to exchange?

Answer: Yes, but in installments.

The TWD to JPY rate at 4.85 has appreciated 8.7% since the start of the year. The Bank of Japan has signaled rate hikes (recent hawkish comments), with market expectations of a 0.25 basis point increase to 0.75% on December 19, reaching a 30-year high. Japanese government bond yields have also risen to 1.93% (17-year high).

In the short term, USD/JPY has fallen from 160 at the start of the year to 154.58, likely fluctuating around 155. Long-term forecasts suggest further decline below 150.

Implication for investors: The yen’s safe-haven property is strong, suitable for hedging Taiwan stock volatility, but short-term arbitrage closing risks could cause 2-5% swings. It’s best to buy in installments, not all at once.

What to do after exchanging for yen? (Don’t let your money sit idle)

After exchanging, don’t just leave it sitting—consider moving yen into options like:

1. Yen fixed deposit — annual interest 1.5-1.8%, minimum 10,000 yen, a conservative choice

2. Yen insurance policy — savings insurance with guaranteed 2-3% interest, medium-term holding of 6-10 years with good returns

3. Yen ETFs (Yuan Da 00675U, etc.) — track yen index, fractional shares, dollar-cost averaging works well

4. Forex trading — trade USD/JPY or EUR/JPY for swing trading, long/short, 24-hour market, with small capital

While yen is a safe-haven, it also fluctuates bidirectionally. Rate hikes by the central bank are bullish, but global arbitrage closing or geopolitical tensions (Taiwan Strait, Middle East) heating up could weaken the yen. Think twice before investing.

Quick tips for exchanging yen

Q. How much is the difference between cash rate and spot rate?
Cash rate (for physical cash) is usually 1-2% worse than spot rate because banks bear costs maintaining cash supply. That’s why counter exchange is the most costly.

Q. How much yen do I get for 10,000 TWD?
Based on Taiwan Bank’s rate on December 10, 2025, about 48,500 yen (cash sell at 4.85). Using spot rate, roughly 48,700 yen, a difference of 200 yen (~40 TWD).

Q. What do I need to bring for counter exchange?
ID + passport. If in company name, bring business registration. If booked online, also bring transaction notice.

Q. What’s the daily withdrawal limit at foreign currency ATMs?
Varies by bank, generally 100,000-150,000 TWD/day. Strongly recommend using your own bank card to avoid NT$5 cross-bank fee, and plan ahead during peak times (especially airports) to avoid cash shortages.

Final words

Yen is no longer just pocket money for travel but an asset with hedging and investment value. As long as you follow the two principles of “batch exchange + don’t leave the yen lying idle,” and choose the right tools to reduce costs and increase returns, you can enjoy savings and gain extra protection during global market turbulence. Beginners should start with “online settlement + airport pickup” or “JPY ATM,” then gradually move to fixed deposits, ETFs, or swing trading—step by step for safety.