Should I exchange USD for JPY directly or use another method? Four JPY exchange options tested under the 2025 TWD depreciation scenario

The pressure of the Taiwanese dollar’s depreciation continues, and the Japanese yen, as one of the world’s three major safe-haven currencies, has recently become a popular choice for currency exchange among Taiwanese people. As of December 10, 2025, the exchange rate of TWD to JPY has reached 4.85, an appreciation of over 8% since the beginning of the year. Whether for traveling abroad or asset allocation, now is the key moment to enter the market.

But do you know? Choosing the wrong method to exchange 50,000 TWD into JPY could cost you more than 2,000 NT dollars. We tested the four most mainstream currency exchange channels in Taiwan to help you find the most cost-effective solution.

Quick Decision: Which currency exchange method suits you?

Urgent need for cash within a week before traveling abroad? → Online exchange + airport pickup
No fixed schedule, might need cash anytime? → Foreign currency ATM withdrawal
Planning to hold long-term, investing while using? → Online currency exchange into foreign currency account
Emergency, small amount? → Bank counter exchange

Option 1: Bank Counter Exchange—Most traditional but most expensive

Bringing cash in TWD to a bank or airport counter to exchange for JPY banknotes is the most common method, but also the most costly. Banks quote using the “cash selling exchange rate,” which is 1-2% worse than the market spot rate. Some banks also charge handling fees, so exchanging 50,000 TWD at once could lose 1,500-2,000 NT dollars.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is 0.2060 TWD per JPY (meaning 1 TWD = 4.85 JPY). Visiting the counter is fee-free. However, E.SUN Bank’s rate on the same day is slightly worse (0.2067 TWD per JPY), with an additional 100 NT dollar handling fee per transaction.

Who is suitable? Small amounts, unfamiliar with online operations, urgent need at the airport

Estimated cost (50,000 TWD): Loss of 1,500-2,000 NT dollars

Option 2: Online exchange + ATM or counter withdrawal—Most flexible

No need to go to the bank; directly use an app to convert TWD into JPY and deposit into a foreign currency account, using the “spot selling exchange rate,” which is about 1% better than cash selling. If cash is needed, withdraw from a foreign currency ATM or at the counter, paying an extra 5-100 NT dollars in withdrawal fees.

The biggest advantage of this method is the ability to operate in batches, observing exchange rate trends to choose the low point for entry. For example, if TWD to JPY drops below 4.80, it’s a good entry point. Plus, with JPY’s current annual interest rate of 1.5-1.8%, after exchange, you can directly place it into a fixed deposit, allowing your money to grow slightly.

Mega Bank’s foreign currency ATM is especially convenient, allowing direct withdrawal from TWD accounts, with a daily maximum of 150,000 NT dollars equivalent in JPY, with only a 5 NT dollar interbank fee.

Who is suitable? Experienced in foreign currency investment, wanting to enter gradually, planning to fixed deposit or buy JPY ETFs

Estimated cost (50,000 TWD): Loss of 500-1,000 NT dollars

Option 3: Online exchange + airport pickup—Most convenient reservation plan

This is the most recommended method for travelers. Fill out the amount, pickup branch, and date on the bank’s official website in advance. After remittance, bring your ID and transaction notification to pick up cash. Taiwan Bank’s “Easy Purchase” online exchange is fee-free (only 10 NT dollars for Taiwan Pay fee), with about 0.5% better exchange rate.

The best part is that you can directly reserve pickup at Taiwan Bank branches at Taoyuan Airport. Two branches operate 24 hours, allowing quick cash pickup before flights. Remember to make reservations at least 1-3 days in advance; once booked, the branch cannot be changed.

Who is suitable? Well-planned travelers, those with time to reserve before departure, wanting to pick up cash directly at the airport

Estimated cost (50,000 TWD): Loss of 300-800 NT dollars

Option 4: Foreign currency ATM withdrawal 24/7—Withdraw anytime

Use a chip-enabled debit card at foreign currency ATMs to withdraw JPY, available 24 hours, with only 5 NT dollars per interbank transaction. Denominations are fixed at 1,000, 5,000, and 10,000 JPY, with about 200 machines nationwide.

The downside is limited locations, and during peak times (holidays or at airports), cash may be insufficient. It’s recommended not to wait until the last minute. Also, each bank has different withdrawal limits; after the 2025 new regulations, most limit at 100,000-150,000 NT dollars per day.

Who is suitable? No time to visit banks, need emergency cash, no large withdrawal requirements

Estimated cost (50,000 TWD): Loss of 800-1,200 NT dollars

Cost and quick reference table for 4 methods

Is it worthwhile to exchange for JPY now? The logic of USD to JPY

By the end of 2025, the TWD to JPY exchange rate is 4.85, up 8.7% from 4.46 at the start of the year. This level offers considerable exchange gains for Taiwanese investors. Considering the long-term depreciation pressure on TWD, JPY as a safe-haven asset is increasingly valuable.

Market observations show that in the second half of the year, Taiwan’s foreign exchange demand increased by 25%, mainly driven by two factors: a recovery in travel demand and investors hedging against Taiwan stock market volatility.

Short-term exchange rate outlook:
The US entering a rate-cut cycle supports the yen. Bank of Japan Governor Ueda Kazuo’s hawkish comments pushed up rate hike expectations to 80%, with a 0.25 basis point increase expected at the December 19 meeting, reaching a 30-year high of 0.75%. The 10-year Japanese government bond yield hit a 17-year high of 1.93%. USD/JPY has fallen from the early-year high of 160 to 154.58 now, with short-term fluctuations around 155, but the medium to long-term trend is expected below 150.

Investment advice:
The short-term volatility of JPY may involve a 2-5% risk (when closing arbitrage trades). It is recommended to enter gradually rather than all at once. Use the “33 rule”: complete currency exchange in three installments within one week, dispersing risk and averaging costs.

After exchanging for JPY, don’t let your money sit idle

Once you have JPY, it shouldn’t just be kept in your wallet. Here are four advanced ways to make your money work:

JPY Fixed Deposit (most stable)
Open a foreign currency account at E.SUN Bank or Taiwan Bank, with a minimum of 10,000 JPY, offering an annual interest rate of 1.5-1.8%. Risk-free, suitable for temporarily parking funds before short trips.

JPY Savings Insurance (medium-term allocation)
Cathay or Fubon life insurance’s JPY savings policies, with guaranteed interest rates of 2-3%, usually tied for 3-5 years, suitable for idle funds.

JPY ETF (growth cycle)
Yuanta 00675U or 00703 tracking the JPY index, can be bought as fractional shares via brokerage apps, suitable for regular investment. Management fee only 0.4%, diversifying currency risk.

Forex trading USD/JPY (short-term swing)
Trading USD/JPY or EUR/JPY on platforms like Mitrade, with 24-hour bidirectional trading, small capital required to capture exchange rate movements. Zero commission, low spreads, with advanced tools like stop-loss and take-profit.

Remember, while JPY is a safe-haven, it also fluctuates bidirectionally. Rate hikes by the Bank of Japan support the yen, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) could weaken it. If you don’t want to spend too much energy, JPY ETFs are the most balanced choice.

Common questions quick answers

Q: What’s the difference between cash exchange rate and spot rate?
Cash rate is the bank’s quote for physical banknotes, paid on the spot but more expensive by 1-2%. Spot rate is the real market transaction price used for electronic transfers T+2 settlement, cheaper but takes two days. Simply put, if you want cash immediately, you pay the premium.

Q: How much JPY can I get with 10,000 TWD?
Using Taiwan Bank’s cash selling rate of 4.85 on December 10, 2025, 10,000 TWD = 48,500 JPY. Using the spot rate of 4.87, it’s 48,700 JPY, a difference of about 200 JPY (~40 NT dollars).

Q: What documents do I need to bring to the bank?
ID card + passport are basic. If you booked online, also bring transaction notification. For amounts over 100,000 NT dollars, you may need to declare source of funds. Under 20 years old, parental consent may be required.

Q: What’s the maximum daily withdrawal at foreign currency ATMs?
Varies by bank. After the 2025 new rules, most limit at 100,000-150,000 NT dollars per day. CTBC and Taishin Bank both have a 150,000 NT dollar limit per day; E.SUN has a 50,000 limit but allows supplementary card. Check your bank’s website for details.

Final advice

The JPY has evolved from just “travel pocket money” to a tool with hedging and investment value. Whether for next year’s Japan trip or hedging against TWD depreciation, as long as you master the “batch exchange + active utilization” logic, you can minimize costs and maximize returns.

For beginners, the most recommended starting point is “Taiwan Bank online exchange + airport pickup” or “E.SUN foreign currency ATM,” which are simple and cost-controlled. After exchanging, choose to deposit, buy ETFs, or trade forex based on your needs. This way, you can enjoy the convenience of traveling abroad and add an extra layer of asset protection during market fluctuations. Start planning your JPY allocation now.