Japanese Yen Exchange Rate Secrets: Which of the 4 Methods is the Most Cost-Effective? The Opportunity to Exchange TWD to JPY at 4.85 in 2025 Has Arrived

This year, the Taiwanese dollar (TWD) against the Japanese Yen (JPY) has reached 4.85, appreciating about 8.7% compared to 4.46 at the beginning of the year—this news has prompted many to reevaluate their currency exchange plans. But the real question is: what’s the most cost-effective way to exchange?

Many people think exchanging Yen at the bank is straightforward, but they may not realize that the exchange rate difference alone could cost you several thousand NT dollars. We have summarized the four most common currency exchange channels in Taiwan, comparing real market rates, so you can see at a glance.

Do You Really Understand the Value of the Yen?

The Yen’s popularity in Taiwan isn’t just because people love traveling to Japan. From a financial perspective, the Yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc), often rising against the market turbulence. During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a week, while the stock market dropped 10%—a reflection of its safe-haven status.

For Taiwanese investors, holding some Yen isn’t just for travel reserves but also a tool to hedge against Taiwan stock market volatility. Additionally, Japan’s ultra-low interest rate policy (currently 0.5%) creates arbitrage opportunities with the US’s higher rates. Investors often borrow Yen at low interest to buy higher-yield USD (interest rate spread up to 4.0%), then unwind positions and buy back Yen when risks increase.

In daily life, travel, shopping, studying abroad, and purchasing, most Japanese merchants still only accept cash (credit card penetration is about 60%), which is why preparing Yen cash is necessary.

Practical Comparison of 4 Currency Exchange Methods

Method 1: Bank Counter Exchange — The Most Traditional, Most Expensive

Bring cash in NT dollars to a bank or airport counter to exchange for Yen cash. Simple to operate, but it uses the “cash selling rate,” usually 1-2% worse than the spot rate, plus possible handling fees, making it the most costly option.

For example, as of December 10, 2025, Taiwan Bank’s rate is approximately 0.2060 NT$/Yen (i.e., 1 NT$ = 4.85 Yen). Exchanging 50,000 NT$, the exchange rate difference alone results in a loss of about 1,500-2,000 NT$.

While cash selling rates vary little among banks, some may charge handling fees (e.g., E.SUN, E.SUN Bank, Cathay United Bank each 100 NT$; CTBC 200 NT$).

Advantages: Safe, full denominations, assistance from staff
Disadvantages: Poor exchange rate, limited operating hours, possible extra fees
Suitable for: Inexperienced online users, small urgent exchanges (e.g., at the airport)

Method 2: Online Currency Exchange with Cash Pickup — Flexible and Cost-Effective

Use bank apps or online banking to convert NT$ into Yen and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling rate). If cash is needed, pick it up at the counter or withdraw via foreign currency ATM, but this incurs additional exchange fees (starting around 100 NT$).

Exchanging 50,000 NT$ this way costs about 500-1,000 NT$, which is cheaper. Suitable for monitoring exchange rates and buying in batches at low points, e.g., when NT$ to Yen drops below 4.80.

After exchange, don’t let the money sit idle—consider fixed deposits in Yen (annual interest 1.5-1.8%) or Yen ETFs (e.g., Yuanta 00675U, annual management fee 0.4%).

Advantages: 24/7 operation, batch buying, better rates, investment options
Disadvantages: Need to open a foreign currency account first, withdrawal fees apply
Suitable for: Those experienced in forex, planning to buy gradually or hold long-term

Method 3: Online Currency Conversion for Airport Pickup — The Best Pre-Travel Solution

No need for a foreign currency account. Simply fill in amount, currency, pickup branch, and date on the bank’s website. After transfer, bring ID and transaction notice to pick up at the counter. Taiwan Bank’s “Easy Purchase” online currency exchange is fee-free (pay via Taiwan Pay, only 10 NT$), with about 0.5% better rates.

This is the best pre-departure reservation method. Taiwan Bank has 14 pickup points at Taoyuan Airport, including 2 open 24 hours, allowing you to collect Yen before departure. Exchanging 50,000 NT$ this way costs about 300-800 NT$.

Advantages: Better rates, usually no handling fee, airport pickup option
Disadvantages: Need to book 1-3 days in advance, pickup limited to operating hours, branch cannot modify
Suitable for: Well-planned trips, pre-departure arrangements, direct airport pickup

Method 4: Foreign Currency ATMs — 24-Hour Instant Withdrawal

Use chip-enabled bank cards at foreign currency ATMs to withdraw Yen cash instantly. Supports 24-hour operation. Deducts only 5 NT$ cross-bank fee from your NT$ account (cheaper with your own bank card). E.SUN Bank’s foreign currency ATMs allow withdrawal of Yen up to 150,000 NT$ per day from NT$ accounts, with no exchange fee.

There are about 200 ATMs nationwide, mainly in major cities. Note that Japan’s ATM services will be adjusted by the end of 2025, requiring international cards (Mastercard/Cirrus).

Additionally, if you want to withdraw Euros or other currencies, some foreign currency ATMs support multiple currencies (depending on the bank), offering flexible options.

Advantages: Instant withdrawal, high flexibility, low cross-bank fees
Disadvantages: Limited denominations (fixed at 1,000/5,000/10,000 Yen), cash may run out during peak times
Suitable for: Last-minute needs, no time to visit banks

How to Save Most on 50,000 NT$ Exchange?

Based on December 2025 data, for exchanging 50,000 NT$:

Recommended Strategy: For budgets between 5-20 million NT$, a combination of “online currency conversion + foreign currency ATM” is most cost-effective. Reserve airport pickup via Taiwan Bank’s online exchange, then supplement with E.SUN foreign currency ATM for last-minute cash needs, minimizing overall costs.

Is It Really a Good Time to Exchange Yen Now?

As of December 10, 2025, TWD/JPY is at 4.85, up 8.7% this year. The second half saw a 25% increase in currency exchange demand, mainly driven by travel recovery and hedging needs.

From a technical perspective, the Bank of Japan’s Governor Ueda recently made hawkish comments, raising rate hike expectations to 80%. The December 19 meeting is expected to raise rates by 0.25 basis points to 0.75% (a 30-year high). USD/JPY has fallen from the early-year high of 160 to 154.58, with short-term fluctuations around 155, but long-term forecasts suggest below 150.

Conclusion: Exchanging Yen now is reasonable, but consider doing it in batches. While the Yen remains a safe-haven asset, it will fluctuate both ways. For investment purposes, consider Yen fixed deposits (annual interest 1.5-1.8%) or Yen ETFs (annual management fee 0.4%) for safety. For short-term trading, forex platforms’ USD/JPY or EUR/JPY pairs are options, but be aware of risks.

Quick FAQs

Q: What’s the difference between cash exchange rate and spot rate?
Cash rate is the rate banks buy/sell physical cash (notes/coins), usually 1-2% worse than the spot rate. Spot rate is the foreign exchange market rate for settlement within two business days, mainly used for electronic transfers, offering better rates but requiring T+2 settlement.

Q: How much Yen can I get for 10,000 NT$?
Use the formula: 【Yen amount = NT$ amount × current rate】. At Taiwan Bank’s cash selling rate of 4.85, 10,000 NT$ ≈ 48,500 Yen; at spot rate 4.87, ≈ 48,700 Yen. The difference is about 200 Yen (roughly NT$40).

Q: Are there withdrawal limits at foreign currency ATMs?
Starting October 2025, many banks will adjust limits. CTBC allows NT$120,000/day, Taishin NT$150,000/day, E.SUN NT$150,000/day (including card transactions). It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Final Reminder

The Yen is no longer just pocket money for travel; it also has hedging and investment value. Whether traveling or asset allocation, follow the two principles of “batch exchange” and “don’t leave the money idle after exchanging” to minimize costs and maximize gains. Beginners are advised to start with Taiwan Bank’s online exchange or E.SUN foreign currency ATM, then invest in fixed deposits, ETFs, or forex trading based on needs. This way, you can save on travel expenses and add a layer of protection during global market fluctuations.