How to exchange Japanese Yen in the most cost-effective way? Master the latest 4 major channels in Taiwan in 5 minutes

The Taiwan dollar has reached the 4.85 mark against the Japanese yen, and suddenly more people are exchanging for yen.

Whether you’re preparing for a trip to Japan, shopping online, or want to hedge against the depreciation of the Taiwan dollar by allocating assets, choosing the right exchange method can save you thousands in exchange rate differences. Today, we’ll clarify the ways to exchange Taiwan dollars for yen. After reading this, you’ll know which method suits you best.

Is it worth exchanging for yen? Useful for daily life and investment

Many people think the yen is just pocket money for travel, but it’s actually much more.

Everyday use: Cash is still mainstream on Japanese streets (credit card penetration is only 60%), so shopping, purchasing medicines and cosmetics, or shopping on Japanese websites usually require yen. People planning to study or work in Japan also exchange in advance to lock in the exchange rate.

Investment aspect: The yen is one of the world’s three major safe-haven currencies (along with USD and Swiss Franc). During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, successfully hedging stock market declines. For Taiwanese investors, exchanging for yen adds an extra layer of protection for Taiwan stocks. Plus, the Bank of Japan is about to raise interest rates (Governor Ueda Kazuo’s hawkish comments have pushed market expectations to 80%, with a rate hike to 0.75% expected on December 19), so the yen still has medium- to long-term support.

Current situation: As of December 10, 2025, the Taiwan dollar to yen exchange rate is about 4.85, up 8.7% from 4.46 at the start of the year. In the second half of the year, Taiwan’s foreign exchange demand grew by 25%, mainly driven by tourism recovery and increased hedging needs.

4 practical methods to exchange yen — tested and compared

If you want to exchange yen in Taiwan, there are more channels than you might think. We list the four most common methods, ranked by economic benefit.

Method 1: Traditional cash exchange at counters — safest but most expensive

This is the most intuitive choice for most: bring Taiwan dollar cash to a bank or airport and get yen cash on the spot.

Why is it expensive? Because banks use the “cash selling rate,” which is about 1-2% worse than the market spot rate. For example, Taiwan Bank’s rate on December 10, 2025, is about 0.2060 TWD/JPY (1 TWD = 4.85 JPY), which is not the best price. Some banks also charge handling fees, making it the most costly, with up to 200 TWD per transaction.

Exchanging 50,000 TWD this way results in a loss of about 1,500–2,000 TWD just from the exchange rate difference.

Advantages: Simple process, high safety, full denominations (1,000/5,000/10,000 yen).

Disadvantages: Poor exchange rate, high handling fees, limited operating hours (weekday 9:00-15:30).

Suitable for: Urgent needs (e.g., at the airport when yen is temporarily short) or those unfamiliar with online transactions.

Method 2: Online currency exchange + counter or ATM withdrawal — a balanced approach

No cash needed; switch to online operation: fill in currency, amount, and withdrawal location via bank app or website, using the spot rate (about 1% better than cash rate). Convert to yen deposit in your account, then go to the bank counter or foreign currency ATM to withdraw cash.

Taiwan Bank’s “Easy Purchase” online exchange is the cheapest. Paying with Taiwan Pay costs only 10 TWD handling fee, with about 0.5% better rate. Exchanging 50,000 TWD reduces costs to 300–800 TWD.

Key advantage: Can be withdrawn at the airport. Taipei Taoyuan Airport has 14 Taiwan Bank outlets (2 open 24 hours), perfect for last-minute withdrawal before departure.

Disadvantages: Needs prior reservation (at least 1-3 days), withdrawal time limited by bank hours, and once a branch is chosen, it can’t be changed.

Suitable for: Planned travelers, those wanting to buy in batches at lower costs, or travelers needing cash at the airport.

Method 3: Foreign currency account withdrawal — suitable for experienced users

Open a foreign currency account with a bank, convert TWD to yen and store there. When cash is needed, withdraw at counters or via foreign currency ATMs.

Advantages include observing exchange rate trends, allowing you to buy in batches at low points (e.g., when TWD/JPY is below 4.80) to average your cost. E.Sun Bank and Taiwan Bank support this service. When withdrawing cash, there are exchange fee charges (minimum 100 TWD), but it’s much cheaper than direct counter exchange.

Advanced use: After exchanging for yen, don’t leave it idle—consider fixed deposits in the foreign currency account. Currently, yen fixed deposit annual interest rates are about 1.5-1.8% (available at E.Sun and Taiwan Bank). Starting from 10,000 yen, it’s a stable way to hedge small amounts.

Disadvantages: Must open a foreign currency account first (simple process but takes time). Withdrawal fees are additional, ranging from 5-100 TWD per transaction.

Suitable for: Readers with forex experience, those who frequently use foreign currency accounts, or investors wanting to hold yen long-term via fixed deposits.

Method 4: 24-hour foreign currency ATM — most flexible but most limited

Use a chip-enabled bank card to withdraw yen cash from foreign currency ATMs. Available 24/7, cross-bank withdrawals cost only 5 TWD (deducted directly from TWD account).

Fubon Bank’s foreign currency ATMs are the most flexible: withdraw yen from TWD account with a daily limit of 150,000 TWD, completely free of exchange fees.

Practical limitations: Few ATMs nationwide (about 200 units), only support major currencies (JPY, USD, EUR, etc.), with fixed denominations of 1,000/5,000/10,000 yen. During peak times (e.g., Taoyuan Airport), cash often runs out, so you can’t always withdraw when needed.

Exchanging 50,000 TWD via this method costs about 800–1,200 TWD, between online exchange and counter exchange.

Suitable for: Office workers or travelers who are short on time or need yen urgently at night.

Cost comparison for exchanging 50,000 TWD

Is now a good time to exchange yen?

Short-term: The yen exchange rate fluctuates within a wide range. The US rate hike cycle has begun, supporting the yen; however, the Bank of Japan is about to raise rates (Governor Ueda’s hawkish comments have pushed expectations to 80%, with a rate hike to 0.75% on December 19). USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now, with a short-term test of 155 possible. Medium- to long-term, it may stay below 150.

For arbitrage traders, this is a risk point—closing positions could cause 2-5% volatility.

Medium to long-term: The Taiwan dollar continues to depreciate, and the yen’s safe-haven attribute is prominent. As one of the three major safe-haven currencies, yen is suitable for hedging Taiwan stock risks.

Our advice: Don’t exchange all at once; it’s smarter to buy in batches. Using a mix of “online exchange + foreign currency account withdrawal” allows you to buy at low points, minimizing costs.

How to use yen after exchanging? Don’t let your money sit idle

After exchanging for yen, don’t let it sit without earning interest. Choose the following allocations based on your purpose:

Conservative — Yen fixed deposit: Set up a fixed deposit in your foreign currency account, with an annual interest rate of 1.5-1.8% (available at E.Sun and Taiwan Bank), starting from 10,000 yen. Suitable for conservative investors seeking guaranteed returns.

Mid-term — Yen insurance savings: Cathay, Fubon Life, and others offer yen-denominated savings insurance, with guaranteed interest rates of 2-3%, locking in 3-5 years of returns, suitable for medium-term funds.

Growth — Yen ETFs: Yuanta 00675U and similar ETFs tracking the yen index can be bought in fractional shares via brokerage apps, suitable for dollar-cost averaging and risk diversification. Management fee is 0.4% annually.

Swing trading — Forex trading: Trade USD/JPY, EUR/JPY directly on platforms like Mitrade, with 24-hour long/short trading, using small capital to capture exchange rate fluctuations. Benefits include zero commission, low spreads, and tools like stop-loss and take-profit. Suitable for experienced traders.

FAQs

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

Cash rate is the bank’s rate for physical banknotes, usually 1-2% worse than the market spot rate. It allows immediate cash pickup. Spot rate is the electronic transfer market price (T+2 settlement), closer to international market, with lower cost but requires waiting.

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

Using Taiwan Bank’s cash selling rate of 4.85, about 48,500 yen. With the spot rate of 4.87, about 48,700 yen, a difference of 200 yen (~40 TWD).

Q: What do I need to bring for counter currency exchange?

ID card + passport. Under 20 needs a parent present + consent form. Large amounts (over 100,000 TWD) may require source of funds declaration. Pre-booked appointments require transaction notices.

Q: What’s the daily withdrawal limit at foreign currency ATMs?

Different banks have different limits (as of October 2025): China Trust Bank approx. 120,000 TWD/day; Taishin Bank approx. 150,000 TWD/day; E.Sun Bank approx. 150,000 TWD/day. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees. Plan ahead during peak times to prevent cash shortages.

Final reminder

The yen is no longer just travel pocket money but an asset with hedging and investment potential. Whether traveling abroad or asset allocation, mastering “batch exchange + not letting money sit idle” can lower costs and increase returns.

For beginners, start with “Taiwan Bank online exchange + airport withdrawal” or “foreign currency ATM.” After familiarization, upgrade to foreign currency account withdrawal for fixed deposits, ETFs, or swing trading. This way, you can enjoy cost-effective travel and add a layer of protection during global market fluctuations.