In 2025, the Japanese Yen exchange rate is 4.85. How to exchange with the least loss? A table to instantly understand the 4 major exchange channels

The current exchange rate of TWD to JPY as of 2025/12/10 is 4.85, appreciating by 8.7% since the beginning of the year. Many people are starting to plan trips to Japan or adjust their asset allocations. But do you know? Using the same 50,000 TWD, different methods could result in losses ranging from 1,500 to 300 yuan, a difference of over four times.

This article breaks down every detail of JPY exchange based on the latest bank rates and fees in 2025, helping you avoid unnecessary detours.

Look at the data first, then decide: Is now a good time to exchange JPY?

Compared to 4.46 at the start of the year, the JPY has appreciated by 8.7%, which is a decent forex gain for Taiwanese investors. Especially in an era where the TWD faces depreciation pressure, many are re-evaluating the asset value of yen holdings.

Why did the JPY suddenly heat up? There are three main reasons:

Rising demand for hedging: The yen, along with USD and Swiss Franc, ranks as one of the three major global safe-haven currencies. Whenever geopolitical risks increase (e.g., Russia-Ukraine conflict in 2022), the yen short-term appreciates by over 8%, offsetting stock market declines. For Taiwanese investors, holding some yen is like buying insurance for their Taiwan stocks.

Expectations of Bank of Japan rate hikes: Governor Ueda Kazuo’s recent hawkish comments have pushed market expectations of rate hikes to 80%, with a projected increase of 0.25 basis points to 0.75% at the December 19 meeting (a 30-year high). JGB yields have hit a 17-year high of 1.93%, attracting arbitrage capital.

Recovery in travel and shopping demand: In the second half of the year, Taiwan’s forex demand increased by 25%, mainly due to the revival of travel to Japan and small-scale yen investments. According to bank transaction records, the ratio of airport withdrawals to online exchanges has reached 1:3.

Short-term volatility risk: USD/JPY retreated from a high of 160 at the start of the year to 154.58. Short-term fluctuations may hover around 155, but the medium to long-term trend is forecasted to be below 150. Closing arbitrage positions could trigger a 2-5% correction, so it’s advisable to buy in batches rather than all at once.

4 major JPY exchange methods fully explained

Method 1: In-branch bank exchange — the most traditional, highest cost

Carry cash TWD directly to a bank or airport counter to buy JPY cash notes, using the “cash selling rate” (1-2% worse than spot rate), plus possible handling fees, making it the most expensive option.

For example, Taiwan Bank’s rate on 2025/12/10 is about 0.2060 TWD/JPY (meaning 1 TWD = 4.85 JPY). With 50,000 TWD, you get about 243,000 JPY, but the cost results in a loss of 1,500-2,000 TWD.

Summary of cash selling rates and in-branch fees (2025/12/10):

Suitable for: Urgent needs (e.g., forgotten at the airport), very small amounts (thousand-level), elderly unfamiliar with online banking.

Disadvantages: Must operate during bank hours (weekday 9:00-15:30), unfavorable exchange rate cannot be compensated, additional handling fees.

Method 2: Online exchange + in-branch withdrawal — a middle ground

Use mobile banking app to convert TWD into JPY and deposit into a foreign currency account, using the “spot sell rate” (about 1% better than cash selling rate). To withdraw cash, go to the counter or ATM, but there will be exchange spread and withdrawal fees (starting around 100 TWD).

For example, E.SUN Bank’s online rate is about 4.87 (better than 4.85 in branch), with withdrawal fees around 100-200 TWD. Total cost for 50,000 TWD is about 500-1,000 TWD, saving more than half compared to in-branch exchange.

Advantages: 24/7 operation, can buy in batches at lower points (e.g., when TWD/JPY drops below 4.80) to average costs.

Disadvantages: Need to open a foreign currency account first (most banks free), cross-bank withdrawal fees and spread are not negligible.

Suitable for: Forex-savvy investors, long-term yen holders, planning to buy yen deposits (annual interest 1.5-1.8%).

Method 3: Online currency exchange + airport pickup — the most convenient

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website, then pay. Bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” online exchange is fee-free (pay with TaiwanPay for just 10 TWD), with about 0.5% better rate.

The best part: you can reserve pickup at Taoyuan Airport’s Taiwan Bank branches (14 branches total, 2 open 24 hours), avoiding city bank visits. Cost for 50,000 TWD is about 300-800 TWD, making it the best pre-trip option.

Simple process: Reserve online → pick up at the airport → board your flight, saving time and effort.

Limitations: Need to book 1-3 days in advance, pickup during bank hours (except 24-hour branches), and changes are not allowed after confirmation.

Suitable for: Planned travelers, those who decide the amount within a week before departure.

Method 4: Foreign currency ATM withdrawal — the most flexible

Use chips financial card at foreign currency ATMs to withdraw JPY, available 24/7. Cross-bank withdrawal fee is only 5 TWD (deducted directly from TWD account), no in-branch visit needed. Some banks like Fubon limit daily withdrawal to 150,000 TWD, with no forex fee.

Time advantage: Can withdraw at any hour, suitable for last-minute trips or busy schedules.

Cost estimate: About 800-1,200 TWD for 50,000 TWD, mainly from cross-bank fees and ATM fixed fees.

Pain points: Only about 200 foreign currency ATMs nationwide, often sold out during peak seasons (e.g., Chinese New Year, summer), and denominations are fixed (only 1,000, 5,000, 10,000 JPY), no flexible combinations.

Reminder: Japan ATM withdrawal services will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus). Plan accordingly.

Cost and scenario comparison of four methods

How do other Asian currencies compare?

Many consider not only JPY but also Korean Won and others. As of 2025/12/10 rates, 100,000 KRW ≈ 260-280 TWD (KRW to TWD about 0.0026-0.0028), which is a different scale from JPY’s purchasing power.

JPY is suitable for medium- to long-term asset allocation and hedging, while KRW is often used for short-term travel expenses. For investors, JPY’s status as a major safe-haven currency is more stable, whereas KRW is more volatile.

After exchanging JPY, how to spend money most cost-effectively?

Once you have JPY, don’t let it sit idle and depreciate without interest. Here are four allocation options:

JPY deposits (conservative): Open a foreign currency account online, deposit from 10,000 JPY, with annual interest of 1.5-1.8%. E.SUN and Taiwan Bank compete fiercely, adjusting rates periodically. Suitable for risk-averse.

JPY insurance policies (medium-term): Cathay and Fubon life’s yen savings insurance offer guaranteed 2-3% interest, suitable for 3-5 year plans. Be aware of exchange rate risks.

JPY ETFs (growth): Yuanta 00675U tracks the yen index, with 0.4% annual management fee, can be bought in fractional shares via broker apps, suitable for long-term appreciation bets.

Forex trading (swing): Trade USD/JPY or EUR/JPY directly on platforms like Mitrade, with zero commission, low spreads, 24-hour trading, stop-loss/take-profit tools. Requires forex knowledge and higher risk.

Common JPY exchange Q&A

Q: What’s the difference between cash rate and spot rate?
Cash rate (Cash Rate) applies to physical notes exchanged on the spot, but has a worse rate (1-2% worse). Spot rate (Spot Rate) is used for electronic transfers, with better rates but T+2 settlement. Generally, spot rate is 0.02-0.03 better than cash rate.

Q: How much JPY do I get for 10,000 TWD?
Using Taiwan Bank’s cash selling rate of 0.2060, 10,000 TWD ≈ 48,500 JPY. Using the more favorable spot rate of about 0.2051, it’s roughly 49,000 JPY, a difference of about 500 JPY.

Q: What documents are needed for in-branch exchange?
Taiwanese: ID card + passport. Foreigners: passport + residence permit. Under 20: legal guardian required. Large amounts (over 100,000 TWD) may require source declaration.

Q: What’s the daily limit for foreign currency ATM withdrawals in Taiwan?
Varies by bank. CTBC: equivalent to 120,000 TWD/day; Taishin: 150,000 TWD/day; E.SUN: 150,000 TWD/day (including debit). Many other banks limit single transactions to 20,000 TWD. Use your own bank card to avoid cross-bank fees.

Summary: JPY is an essential asset allocation tool

JPY is no longer just pocket money for travel but a strategic asset for hedging and investment. In an era of TWD depreciation and global volatility, holding some yen as part of your asset mix has become basic financial literacy.

Key recommendations:

1. Use batch exchange: Avoid all-at-once, buy in stages between 4.80-4.90.
2. Choose the right channels: Use online exchange + airport pickup before trips, foreign currency ATMs for urgent needs, online exchange for long-term investments.
3. Allocate after exchange: Consider deposits, ETFs, or insurance—don’t let yen depreciate passively.
4. Monitor central bank moves: BOJ rate hikes directly impact JPY trends; stay informed.

Whether planning a trip to Japan next year or adjusting your assets for hedging, mastering these methods will minimize costs and maximize returns.