Japanese Yen exchange rate surges to 4.85! Is it most cost-effective to exchange 50,000 TWD? An article explaining 4 exchange methods + investment follow-up

Is it worth exchanging Japanese Yen? Check the exchange rate trend first before deciding

As of December 10, 2025, the TWD/JPY exchange rate has reached 4.85. Compared to the beginning of the year at 4.46, the TWD has depreciated by nearly 8.7% in just one year. This also means that if you exchange for JPY now, the exchange gain alone is quite substantial.

Looking at the HKD/JPY trend, the yen, as one of the world’s three major safe-haven currencies (alongside USD and CHF), tends to strengthen first when geopolitical risks rise. During the week of the Russia-Ukraine war outbreak in 2022, the yen appreciated 8% in a single week, successfully offsetting a 10% decline in the stock market—showing the power of safe-haven assets.

But is it a good time to exchange now? The answer is “conditionally advantageous.” Recent hawkish comments from Bank of Japan Governor Ueda Kazuo have raised market expectations, with a rate hike to 0.75% on December 19 already a certainty (a 30-year high), and Japanese government bond yields hitting a 17-year high of 1.93%. USD/JPY has fallen from 160 at the start of the year to 154.58 now, and may rebound to 155 in the short term, but medium to long-term forecasts suggest it will stay below 150.

Most importantly: stagger your entries, don’t exchange all at once.

Practical comparison of 4 JPY exchange methods in Taiwan

Many think exchanging JPY just involves going to the bank, but even the exchange rate difference can cost you several cups of bubble tea. Using NT$50,000 as an example, we’ve calculated the costs of the latest four channels clearly.

Method 1: Bank counter + airport counter (highest cost)

Bring cash NT$ to a bank branch or airport counter to exchange for JPY banknotes. This is the most traditional method and also the most expensive.

Why is it costly? Because banks use “cash selling rates,” which are 1-2% worse than the market rate. For example, Taiwan Bank’s rate on December 10 at 9:18 shows a cash selling rate of 0.2060 NT$/JPY, meaning NT$1 exchanges for 4.85 JPY. If you are a E.SUN Bank customer, each transaction incurs an additional NT$100 fee; Taipei Fubon charges NT$200.

Cost estimate: Exchanging NT$50,000 results in a loss of about NT$1,500–2,000.

The only advantage is safety, convenience, and full denominations (1,000, 5,000, 10,000 JPY), with staff assistance on site. Disadvantages include limited hours (weekday 9:00-15:30), exchange rate gap, and handling fees.

Suitable for: Those with no time, only need small amounts temporarily (like at the airport), or people unfamiliar with online operations.

Method 2: Online currency exchange + cash pickup (balanced approach)

Use bank app or online banking to convert NT$ to JPY and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash rate). If you want cash, you can go to a counter or withdraw via foreign currency ATM, but this incurs additional exchange fee (minimum NT$100).

E.SUN Bank follows this process: first exchange online to a foreign currency account, then withdraw cash at the counter with a fee (the difference between spot and cash rates). Fubon’s foreign currency ATMs are more flexible: you can withdraw up to NT$150,000 per day from a NT$ account without exchange fees.

The core advantage of this method is the ability to observe exchange rate trends and enter in batches at low points (e.g., when NT$ to JPY is below 4.80), averaging the cost.

Cost estimate: NT$50,000 exchange results in a loss of about NT$500–1,000.

Suitable for: People experienced with forex, who often use foreign currency accounts, and those looking to invest in JPY deposits (current annual interest rate 1.5-1.8%) or buy JPY insurance policies.

Method 3: Online currency settlement + airport pickup (must for office workers)

No need to open a foreign currency account. Just fill in currency, amount, preferred pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notification to pick up cash in person. Taiwan Bank’s “Easy Purchase” online settlement is fee-free (using Taiwan Pay costs only NT$10), and offers a 0.5% better rate, making it highly cost-effective.

The best part: Taoyuan Airport has 14 Taiwan Bank branches, including 2 open 24 hours, allowing direct cash pickup at the airport without traveling into the city.

Cost estimate: NT$50,000 exchange results in a loss of about NT$300–800.

Suitable for: Well-planned travelers, office workers starting preparations a week before departure. The downside is the need for prior reservation (at least 1-3 days ahead), and once the pickup branch is confirmed, it cannot be changed.

Method 4: Foreign currency ATM withdrawal anytime (most flexible)

Use a chip-enabled bank card at foreign currency ATMs to withdraw JPY cash 24/7. Cross-bank transactions incur a NT$5 fee per withdrawal. Denominations are fixed (1,000/5,000/10,000 JPY), and only major currencies are available. Locations are limited (~200 units nationwide).

Fubon’s foreign currency ATMs have a daily limit of NT$150,000 equivalent, directly debited from your NT$ account, no prior exchange needed. CTBC Bank’s limit is NT$120,000 for the same account, NT$20,000 for cross-bank.

Note: By the end of 2025, Japan ATM withdrawal services will be adjusted to support only international cards (Mastercard/Cirrus). Domestic cards in Taiwan will no longer be able to withdraw cash at Japanese ATMs.

Cost estimate: NT$50,000 exchange results in a loss of NT$800–1,200 (due to fluctuating on-site rates).

Suitable for: Those needing cash temporarily, without time to visit banks, or near ATMs. The downside is limited availability, especially during peak airport hours when cash may run out.

Data-driven comparison: Four methods in detail

Best for beginners: Online exchange + airport pickup, or a combination of online exchange + foreign ATM, both minimizing costs.

Real-time comparison of JPY cash rates at banks

Based on the updated rates at 9:30 on December 10, 2025, the cash selling rates and fees are:

Better rates: Fubon (0.2058), Mega/First (0.2062), Taiwan Bank (0.2060)

Higher fees: Cathay United (NT$200 per transaction), E.SUN/Fubon/Taipei Fubon (NT$100 each)

Recommendation: Prioritize online settlement via Taiwan Bank or Mega, to avoid cash rate losses. Use counter exchange only if necessary.

JPY fixed deposits, ETFs, forex trading—don’t let your money sit idle after exchange

After exchanging JPY, don’t just stash it in your wallet. Based on your goals, consider the next steps:

1. JPY fixed deposit (capital preservation)
Open a foreign currency account online, deposit from NT$, minimum NT$10,000, annual interest 1.5-1.8%. Available at E.SUN, Taiwan Bank, with terms from 3 months to 1 year. Completely risk-free, suitable for short-term travel funds or emergency reserves.

2. JPY savings insurance (mid-term protection)
Cathay and Fubon Life offer JPY policies with guaranteed interest rates of 2-3%, locking in 6-10 years. Suitable for those seeking fixed returns and hedging FX risk. Disadvantage: poor liquidity, early termination incurs fees.

3. JPY ETFs (growth and swing trading)
Yuanta 00675U tracks the JPY index, can be bought as fractional shares via broker apps, suitable for dollar-cost averaging. Management fee 0.4%, lower than holding cash, and benefits from BOJ rate hikes.

4. Forex trading USD/JPY, EUR/JPY (advanced swing trading)
Trade on platforms like Mitrade, 24/7, with options to go long or short. Small capital needed. Advantages: zero commission, low spreads, stop-loss/take-profit tools. Suitable for experienced traders to catch short-term volatility. Risks: higher, requires active monitoring.

Risk warning: BOJ rate hikes are short-term bullish, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) could weaken JPY. Diversify your FX exposure accordingly.

Common questions about exchanging JPY answered

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

Cash rate (Cash Rate) is the rate banks use for physical cash transactions—convenient for immediate cash exchange but usually 1-2% worse than the market rate, plus fees, adding up over time.

Spot rate (Spot Rate) is the exchange rate for settlement within two business days (T+2) in the forex market, used for electronic transfers without physical cash. It’s closer to the international market price, offering better value for individual investors.

How much JPY can I get for NT$10,000 now?

Using Taiwan Bank’s cash rate of 0.2060 NT$/JPY at 9:18 on December 10, 2025, NT$10,000 exchanges for about 48,500 JPY.

With the spot rate around 0.2064, you could get approximately 48,620 JPY—about NT$120 more (NT$24). Not a huge difference, but on NT$50,000, that’s about 600 JPY (NT$120) extra, which adds up over time.

What documents do I need to bring for counter exchange?

For locals: ID card + passport; for foreigners: passport + residence permit. For companies: business registration certificate. If you booked online, don’t forget to bring the transaction notification.

Under 20? Must be accompanied by a parent and sign a consent form. For large exchanges over NT$100,000, you may need to fill out a source of funds declaration, per anti-money laundering regulations.

Are there limits on foreign currency ATM withdrawals?

Yes. After the new rules in October 2025, banks have strengthened fraud prevention limits. CTBC’s limit is NT$120,000 per day; other banks like Taishin and E.SUN also have NT$150,000 daily limits for foreign currency ATM withdrawals from their own cards, NT$20,000 for cross-bank.

Practical tip: For large withdrawals, use your own bank card to avoid cross-bank NT$5 fee per transaction, or split withdrawals over multiple days. Especially at busy airports, cash may run out quickly during peak hours, so plan ahead.

Final summary: Investment principles

The JPY is no longer just “pocket money” for travel but a financial asset with hedging properties. TWD depreciation, diverging global central bank policies, and rising geopolitical risks all support increasing JPY allocations.

Two core principles:

1. Dollar-cost average your exchange, don’t try to do it all at once
2. After exchanging, don’t leave it idle—invest in fixed deposits, ETFs, or forex trading to keep your money working

Whether you’re a traveler planning to visit Japan next year or an investor seeking extra protection during TWD depreciation, start with the simplest approach: online settlement with Taiwan Bank + airport pickup. Then, gradually upgrade to fixed deposits, insurance, or forex trading based on your risk appetite. This way, you can enjoy your trip and also have peace of mind amid global market fluctuations.