Where is the cheapest place to exchange Japanese Yen? Master these 4 methods to exchange smartly

December 10, 2025, the Taiwan dollar against the Japanese yen reaches a relatively high level of 4.85. People looking to exchange yen are starting to get restless. But which method—going to the bank, using an ATM, or online remittance—won’t eat up your exchange margin? Let’s break down the four major exchange channels so you can instantly understand how to exchange yen most cost-effectively.

Why should you pay attention to the yen now?

The yen is not just pocket money for travel. As one of the world’s three major safe-haven currencies (the other two are the US dollar and Swiss franc), during global economic turbulence, funds flow into the yen for safety. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, successfully hedging against a 10% stock market decline.

For Taiwanese investors, exchanging yen is like buying an “insurance policy”—it can hedge Taiwan stock volatility and earn interest rate differentials in a low-interest environment (Japan’s central bank maintains an ultra-low rate of 0.5%). This year, the Taiwan dollar has appreciated 8.7% against the yen (from 4.46 at the start of the year to 4.85 now), making the exchange gains quite substantial.

Where to exchange yen? A comparison of 4 channels

Just the exchange rate difference can cost you the price of an extra bubble tea. Here’s the latest comparison of exchange methods as of December 2025:

Option 1: Bank counter cash exchange (most traditional, most expensive)

Go directly to a bank branch or airport counter to exchange Taiwan dollars for yen cash. While simple and safe, it uses the “cash selling rate,” which is 1-2% worse than the market spot rate, plus possible service fees, making it the most costly.

For example, Taiwan Bank’s cash selling rate is about 0.2060 TWD/JPY (1 TWD = 4.85 JPY). Some banks charge extra fees. Overall, an estimated loss of about 1,500-2,000 TWD on 50,000 TWD exchanged.

Suitable for: Urgent airport needs, travelers unfamiliar with online operations

Option 2: Online remittance + ATM withdrawal (24/7 flexibility, moderate cost)

Use bank app or online banking to transfer TWD into a foreign currency account in JPY, using the “spot sell rate” (about 1% better than cash rate). When cash is needed, withdraw from foreign currency ATMs. Deducting directly from the TWD account costs only 5 TWD per cross-bank transaction, with no remittance fee.

Ideal for those without time to visit the bank or needing immediate cash. E.SUN Bank’s foreign currency ATM has a daily withdrawal limit of 150,000 TWD equivalent, with about 200 nationwide locations. Estimated loss: 800-1,200 TWD.

Suitable for: Office workers, urgent needs, those with no time to plan

Option 3: Online remittance + airport pickup (best exchange rate, but requires reservation)

No need for a foreign currency account. Reserve online via bank website, choose pickup branch (e.g., Taoyuan Airport) and date, then bring ID and transaction notification to pick up in person. Taiwan Bank’s “Easy Purchase” service has no fee (pay with TaiwanPay for only 10 TWD), with about 0.5% better rates.

Taoyuan Airport has 14 Taiwan Bank counters, 2 of which operate 24 hours, suitable for last-minute top-ups before departure. Estimated loss: 300-800 TWD, a medium-cost option.

Suitable for: Well-planned travelers, those preparing thoroughly before departure

Option 4: Foreign currency ATM instant withdrawal (fastest, limited locations)

Use a chip-enabled financial card at foreign currency ATMs to withdraw yen directly. 24/7 operation, supports cross-bank transactions (5 TWD fee). Denominations are fixed at 1,000/5,000/10,000 yen. Estimated loss: 800-1,200 TWD.

Disadvantages include limited locations (about 200 nationwide), often out of stock during peak times, especially at busy airports.

Suitable for: People who don’t have time to visit banks or need last-minute cash

Cost comparison table for exchanging yen

Is it cost-effective to exchange yen now? The answer: Yes, but in batches

The current yen exchange rate is near this year’s high. Based on the latest data analysis:

Short-term risk: BOJ Governor Ueda Kazuo recently made hawkish comments, raising expectations of a rate hike to 0.75% at the December 19 meeting (a 30-year high). USD/JPY has fallen from the high of 160 at the start of the year to 154.58, and may test 155 in the short term, but closing out arbitrage trades could cause 2-5% volatility.

Medium to long-term opportunity: The yen, as a safe-haven asset, will be supported when global uncertainties rise. Expect USD/JPY to trade below 150 in the mid-term. For investment purposes, staggered entry can average costs and avoid the risk of converting everything at a high point.

After exchanging yen, don’t let your money sit idle

If you’ve already exchanged yen, the next key is to “make your money grow,” not let it sit at home with no interest and depreciate.

Yen fixed deposit: The most stable, with annual interest rates of 1.5-1.8%. Open accounts online at E.SUN Bank or Taiwan Bank, starting from 10,000 yen.

Yen ETFs: Growth options like Yuanta 00675U tracking the yen index, with an annual management fee of 0.4%, allowing fractional shares for diversification.

Yen forex trading: To capture exchange rate fluctuations, trade USD/JPY or EUR/JPY via forex platforms 24/7, with long and short options, suitable for those with some trading experience.

Quick decision tree for beginners

Only 1-2 weeks before departure? → Use online remittance + airport pickup for the best rate

Sudden plan, no time to prepare? → Use foreign currency ATM or online remittance + ATM for instant, convenient cash

Want to invest in yen for the long term? → Use online remittance to deposit into fixed deposits or ETFs, low cost with potential gains

Budget over 200,000 TWD? → Exchange in installments to avoid unfavorable rates on a single transaction

Common Q&A

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

Cash rate is the bank’s quote for physical banknotes, usually worse (around 0.2060); spot rate is the market price for non-cash settlement (around 0.2062), about 1% better. For foreign currency transfers or account holdings, use the spot rate; if you only want cash, accept the cash rate.

Q: What should I bring for currency exchange?

Locals: ID card + passport; foreigners: passport + residence permit. If reserving online, also bring transaction notification. For large amounts (over 100,000 TWD), banks may require source of funds declaration.

Q: What’s the ATM withdrawal limit?

Post-2025 regulations, domestic bank cards typically have a daily limit of 120,000-150,000 TWD equivalent; cross-bank cards are lower. Use your own bank card to avoid extra fees. During peak times, withdraw in multiple transactions.

Final advice

The yen has evolved from “travel pocket money” to “hedging investment asset.” Whether for next year’s trip to Japan or hedging TWD depreciation risk, mastering the dual strategy of “batch exchange + value-added after exchange” is the smart approach.

For beginners, start with online remittance + airport pickup from Taiwan Bank, then explore fixed deposits and ETFs for advanced allocation. This way, you can enjoy cost savings and add a layer of protection during global market fluctuations.