Yen investments are booming, but are your currency exchange methods really saving you money?

TWD to JPY has reached 4.85, and people who want to travel to Japan or hedge their positions are starting to get restless. But exchanging yen may seem simple, yet choosing the right method alone can save you thousands in fees. We break down the four most common exchange channels on the market to help you find the most cost-effective route.

Why is everyone rushing to exchange for yen now?

On the surface, it’s due to the popularity of travel to Japan, but there’s a deeper financial logic behind it.

The Japanese yen has long been considered one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). When markets are turbulent, funds flow into it. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, successfully buffering stock market declines. For Taiwanese investors, exchanging for yen is not just for travel but also for hedging Taiwan stock risks.

Plus, recent hawkish comments from Bank of Japan Governor Ueda Kazuo have driven expectations of interest rate hikes, with the December 19 meeting expected to raise rates to 0.75% (a 30-year high), with market expectations rising to 80%. In this rate hike cycle, the yen becomes even more attractive.

Four ways to exchange currency, with big cost differences

Many people only know to exchange at bank counters, but this is the most expensive method. We tested a 50,000 TWD exchange across different channels to show you the real costs.

Method 1: Bank counter cash exchange (highest cost, loss of 1,500-2,000 NT$)

Bring cash TWD to a bank branch or airport counter to buy yen cash. It’s the simplest method but offers the worst exchange rate. Banks use the “cash selling rate,” usually 1-2% worse than the spot rate, plus fixed handling fees, making the final cost significantly higher.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, was about 0.2060 TWD per yen (roughly 4.85 yen per TWD). Exchanging 50,000 TWD would result in a loss of over 1,500 NT$.

Comparison of bank cash rates and fees (2025/12/10):

Suitable for: Elderly who don’t use online banking, or those in urgent need of cash at the airport.

Method 2: Online exchange + ATM or counter withdrawal (costs 500-1,000 NT$)

Use bank app or online banking to transfer TWD into a foreign currency account in yen, using the “spot selling rate” (about 1% better than cash selling rate), then withdraw cash at a counter or foreign currency ATM. This saves on the spread but incurs an additional withdrawal fee.

E.SUN Bank and Taiwan Bank support this method, with withdrawal fees starting around 100 NT$. The advantage is 24/7 online operation, allowing you to observe exchange rates and buy in batches when rates are low (e.g., TWD/JPY below 4.80), reducing average costs.

If you have forex investment plans, after exchanging for yen, you can directly transfer into fixed deposits (currently around 1.5-1.8% annual interest), letting your idle funds earn interest.

Suitable for: Those with some forex experience planning to hold yen long-term.

Method 3: Online currency exchange + airport pickup (costs 300-800 NT$, highly recommended)

No need to open a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notification to pick up in person. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay with Taiwan Pay, only 10 NT$), and offers about 0.5% better rates.

This is the best pre-departure reservation method. Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours), so you can pick up directly at the airport without queuing. The cost is minimal, only losing 300-800 NT$.

Suitable for: Well-planned travelers, those planning trips more than a week in advance.

Method 4: Foreign currency ATM withdrawal (costs 800-1,200 NT$, most flexible)

Use a chip-enabled debit card at foreign currency ATMs to withdraw yen cash, operational 24/7. It costs only about 5 NT$ per transaction for cross-bank fees from your TWD account. Some banks like Sinopac support daily withdrawal limits of 150,000 NT$, with no additional forex fees.

Disadvantages include limited locations (about 200 nationwide), potential cash shortages during peak times, and fixed denominations of 1,000/5,000/10,000 yen. Avoid waiting until the last minute, especially at busy airports.

Suitable for: People who don’t have time to visit banks or need emergency cash.

What to bring when exchanging yen at the bank?

Many overlook this, only to find out at the counter that their documents are incomplete, wasting time.

For Taiwanese at the counter: ID + passport (for locals) or passport + residence permit (for foreigners)
For corporate exchange: Business registration documents
Online reservation pickup: Besides ID, also bring transaction notification
Under 20: Must be accompanied by a parent and sign a consent form
Large amount exchange (over 100,000 NT$): May need to fill out a source of funds declaration

Is it worthwhile to exchange yen now? Batch operation is the key

As of December 10, 2025, TWD to JPY is about 4.85, up 8.7% from 4.46 at the start of the year. The exchange gains are significant. But is now the best time?

While the yen is a safe-haven currency, it also faces two-way fluctuations. Short-term, US rate cuts may support the yen, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) could push the rate down. Short-term volatility is expected at 2-5%.

Our advice is to buy in batches, not all at once. Recent observations show Taiwan’s forex demand increased by 25% in the second half of the year, mainly due to travel recovery and hedging needs. If you’re investing, USD/JPY has fallen from a high of 160 at the start of the year to 154.58, with a medium-to-long-term forecast below 150, so consider staggered entries.

After exchanging yen, how to hold it without losing out?

Don’t let your yen sit idle without earning interest. Here are four options to keep your yen appreciating:

Yen fixed deposit: The most stable, open an online foreign currency account with E.SUN or Taiwan Bank, starting from 10,000 yen, with annual interest rates of 1.5-1.8%.

Yen insurance policy: Medium-term holding, buy savings insurance from Cathay or Fubon Life, with guaranteed interest rates of 2-3%.

Yen ETFs (00675U, 00703): Growth-oriented options. Yuanta 00675U tracks the yen index, with a 0.4% management fee, and can be bought as fractional shares via broker apps for regular investment.

Yen forex trading: Directly trade USD/JPY or EUR/JPY, with long/short options, 24-hour trading, and small capital requirements, suitable for swing or intraday strategies.

Common questions answered

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

Cash rate is the bank’s buy/sell rate for physical cash, with the advantage of immediate delivery but usually 1-2% worse than the spot rate. The spot rate is the foreign exchange market rate for settlement within two business days (T+2), used for electronic transfers or non-cash settlement, and is closer to international market prices.

Q: How much yen can I get with 10,000 NT$?

Calculate based on current rates. Using Taiwan Bank’s cash selling rate of 4.85 on December 10, 2025, 10,000 NT$ can buy about 48,500 yen. Using the spot rate of 4.87, it’s about 48,700 yen, a difference of 200 yen (~40 NT$).

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

Yes. Post-2025 regulations, many banks have increased anti-fraud measures, with daily withdrawal limits around 100,000-150,000 NT$. For example, China Trust supports 120,000 NT$/day, Taishin 150,000 NT$/day, E.SUN 150,000 NT$/day. Use your own bank’s debit card to avoid cross-bank fees (5 NT$ per withdrawal).

Conclusion

The yen has evolved from a simple travel “pocket money” to an asset with hedging and investment value. Whether you’re traveling to Japan next year or hedging against TWD depreciation, mastering “batch exchange + immediate allocation” principles can minimize costs.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transition into fixed deposits, ETFs, or forex trading based on needs. This approach saves costs and adds a layer of protection during global market turbulence.