How much money should you bring to Japan? Master Japanese yen exchange tips to spend less unnecessary money

By the end of 2025, the exchange rate of TWD to JPY fluctuates around 4.85. People planning to travel abroad to Japan or invest in yen are starting to get interested. But do you know? Using the same 50,000 TWD, choosing the wrong method could cost you an extra 1,500 NT dollars. Today, we will thoroughly explain Taiwan’s latest yen exchange channels, so you can plan how much cash to bring and how to exchange most cost-effectively before your trip.

Before going to Japan, you need to understand: Why is the yen so valuable?

The yen is not just a travel currency; its role in the financial markets is even more significant.

One of the world’s three major safe-haven currencies — Japan’s economy is stable, debt is well-controlled, and during market turbulence, funds tend to flow into yen. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, successfully buffering stock market declines. For Taiwanese investors, exchanging for yen adds a layer of hedge against Taiwan stock risks.

A key player in interest rate arbitrage — Japan maintains ultra-low interest rates (only 0.5%), so many investors borrow yen at low interest to buy higher-yield USD investments, with a USD/JPY interest rate differential of 4.0%. When risks rise, they close positions, and the yen becomes the financing currency for arbitrage trades.

Practical uses are broad — traveling abroad, purchasing Japanese goods, studying or working in Japan. Cash yen is most accepted in Japan (credit card penetration is only 60%).

So the question isn’t “Should I exchange for yen,” but “How to exchange most cost-effectively” and “How much to bring.”

Japan travel budget: How much yen cash should you bring?

According to Japan Tourism Agency data, Taiwanese travelers stay an average of 4-7 days, spending around 200,000-400,000 yen (about 4,000-8,000 TWD). But this depends on your travel style:

Budget traveler (hostels, convenience store meals, free attractions): 5,000 yen/day, about 35,000 yen for 7 days (around 7,000 TWD)

Mid-range spender (hotels, sit-down meals, souvenirs): 10,000 yen/day, about 70,000 yen for 7 days (around 14,000 TWD)

Luxury/pleasure seeker (hot spring hotels, Michelin restaurants, shopping sprees): over 15,000 yen/day, possibly exceeding 100,000 yen in 7 days (around 20,000 TWD)

Key tip: Don’t exchange all your cash at once. Bring no more than 70% of your total expected expenses in cash, and the remaining 30% via credit card or international withdrawal card (Visa/Mastercard) at Japanese ATMs. This yields better exchange rates and reduces risk.

Taiwan’s 4 yen exchange methods, with big cost differences

Method 1: Bank counter cash exchange — the most traditional but most costly

Go directly to a bank or airport branch to exchange TWD for yen cash. It sounds simple, but it’s the most expensive.

The reason: banks use “cash selling exchange rate,” which is about 1-2% worse than the spot rate. For example, on December 10, 2025, Taiwan Bank’s selling rate was about 0.2060 TWD/JPY (1 TWD = 4.85 JPY), while the spot rate might be 4.87.

Exchanging 50,000 TWD costs about 200 yen less, roughly NT$40. But add in branch handling fees (100-200 NT dollars per transaction), and your total loss can reach NT$1,500-2,000.

Bank cash selling exchange rate table (as of December 10, 2025):

When to use this method: Emergency at the airport, amounts under NT$10,000, or for elders unfamiliar with online transfers.

Method 2: Online currency exchange + branch/ATM withdrawal — moderate cost, flexible

Use bank app or online banking to convert TWD to yen and deposit into a foreign currency account. The “spot sell rate” is about 1% better than cash exchange. When you need cash, go to a branch or use foreign currency ATMs to withdraw. Withdrawal incurs a currency conversion fee (minimum NT$100).

Advantage: you can buy in installments, averaging costs. For example, when TWD/JPY drops below 4.80, buy in parts, averaging in at lower prices.

E.g., E.SUN Bank’s app shows a spot rate of about 4.87. Withdrawal fee is the difference between spot and cash rate, at least NT$100. Exchanging NT$50,000 costs about NT$500-1,000.

When to use: You have a forex account, want to buy gradually, or plan to hold yen long-term for deposits or investments.

Method 3: Online currency exchange + airport pickup — best for travelers

This is the hottest method recently. Fill in currency, amount, pickup branch, and date on the bank’s website. After online transfer, bring ID and transaction notice to the designated branch to pick up.

Taiwan Bank’s “Easy Purchase” online exchange service is especially convenient — pay NT$10 via TaiwanPay, with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank outlets, including 2 open 24 hours, so you can pick up yen right before departure.

Exchanging NT$50,000 costs only NT$300-800 in loss. You can choose the airport branch and time, no restrictions.

When to use: Planning a trip, want to pick up cash at the airport, or avoid multiple bank visits.

Method 4: Foreign currency ATM withdrawal — quickest for emergencies

Use a chip-enabled debit/credit card at foreign currency ATMs to withdraw yen cash 24/7. Cross-bank withdrawal fee is NT$5. Withdrawing from a foreign currency ATM at Sinopac Bank even has no exchange fee, with a daily limit of NT$150,000.

Disadvantages: limited locations (~200 nationwide), fixed denominations (1,000, 5,000, 10,000 yen). During peak hours at airports, cash often runs out.

Exchanging NT$50,000 costs about NT$800-1,200.

When to use: No time to visit banks, urgent need, or with a compatible card.

Cost comparison of the 4 methods — see clearly in a table

Based on exchanging NT$50,000:

Conclusion: For a budget of NT$50,000-200,000, the best combo is “online exchange + airport pickup,” saving money and time.

Is it worth exchanging yen now? How to time the market

By the end of 2025, the 4.85 rate is 8.7% stronger than the early 2025 rate of 4.46, a pretty good entry point. In the second half of 2025, demand for yen in Taiwan grew by 25%, driven by travel recovery and hedging needs.

But don’t exchange all at once. Short-term volatility remains:

The Fed’s rate cut cycle favors yen, but the Bank of Japan is raising rates — Governor Ueda’s hawkish comments have pushed expectations to 80%, with a 0.25 bps hike to 0.75% expected on December 19 (30-year high). Japanese bond yields hit a 17-year high of 1.93%. USD/JPY dropped from 160 to 154.58 this year, likely to oscillate around 155 short-term, but long-term forecast below 150.

For investment purposes: Yen as a safe-haven currency is good for hedging Taiwan stocks, but beware of arbitrage closing risks, which could cause 2-5% fluctuations. Use installment purchases, avoid all-in exchanges.

For travel purposes: Exchanging now isn’t a loss, but don’t rush to convert everything at once. Split into 2-3 transactions to lower risk.

After exchanging yen, don’t let your money sit idle without returns

Once you have yen, don’t leave it idle without interest. Consider these options:

Yen fixed deposit — steady income. E.SUN and Taiwan Bank offer foreign currency accounts, online deposits starting at 10,000 yen, with annual interest rates of 1.5-1.8%.

Yen insurance policies — medium-term holding. Cathay and Fubon life offer foreign currency savings insurance with guaranteed rates of 2-3%.

Yen ETFs (00675U, 00703) — growth-oriented. Yuanta 00675U tracks yen index, can buy fractional shares via broker apps, suitable for dollar-cost averaging, annual management fee 0.4%.

Forex trading — advanced. Trade USD/JPY or EUR/JPY on forex platforms, with long/short and 24-hour trading, using small capital for swing or intraday strategies.

Quick FAQs

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

Cash rate is the buy/sell rate banks offer for physical banknotes, worse than spot rate but immediate. Spot rate is the foreign exchange market rate for settlement within two business days, used for electronic transfers and foreign currency accounts, more favorable but requires T+2 settlement.

Q: How much yen for NT$10,000?

Use formula: Yen amount = TWD amount × current rate. On December 10, 2025, Taiwan Bank’s cash selling rate is 4.85, so NT$10,000 ≈ 48,500 yen; at spot rate 4.87, about 48,700 yen.

Q: What ID to bring for branch exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. If pre-booked online, also bring transaction notice. Under 20 needs parent’s consent and ID. Large amounts (>NT$100,000) may require source declaration.

Q: What’s the limit for foreign currency ATM withdrawal?

Varies by bank. Since October 2025, stricter anti-fraud measures. CTBC allows up to NT$120,000 per day; Taishin Bank NT$150,000; E.SUN NT$150,000 (including card spending). Other banks may have lower limits. Consider spreading withdrawals or using your own bank card to avoid cross-bank fees.

Summary: Smart yen exchange makes your trip cheaper and your investments more stable

Yen is no longer just pocket money for travel; it also functions as a hedge and investment asset. 2025 is a good entry point, but choosing the right method and staggering purchases is key.

How much yen to bring for Japan? Based on your travel days and spending habits, convert 30-70% into cash yen, and the rest via credit or international withdrawal cards. When exchanging, prioritize “online exchange + airport pickup” or “foreign currency ATM” for lowest costs. After exchanging, consider deposits, ETFs, or forex trading to hedge risks or generate passive income.

Master the principles of installment buying and diversification, and you’ll have an extra layer of protection amid global market turbulence, making your trip more cost-effective.