NTD to JPY 4.85, is now the most cost-effective time to exchange? Use the right method to save thousands

December 10, 2025, TWD to JPY has surged to 4.85, appreciating 8.7% from 4.46 at the start of the year, prompting many to get ready. But here’s a harsh truth: choosing the wrong currency exchange method can cost you several cups of bubble tea just in fees and spreads.

We’ve dug out the 4 major pitfalls in Taiwan’s JPY exchange market and the truly most cost-effective strategies.

Why has exchanging for JPY suddenly become popular?

Many think exchanging for JPY is just for traveling, but it’s much more than that.

Travel and shopping: Japan’s cash usage remains over 40%, especially in Hokkaido for skiing and Okinawa for vacations, where cash is basically king. People buying Japanese cosmetics, anime merchandise, and souvenirs often need to pay directly in yen.

Financial hedging: The yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). Japan’s economy is stable with low debt. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, buffering stock market declines. Under Taiwan dollar depreciation pressure, holding some yen is like adding an extra layer of armor to Taiwanese stocks.

Arbitrage opportunities: Japan’s long-term ultra-low interest rate (0.5%) versus the US rate of over 4.5% creates a 4 percentage point spread. Many investors borrow yen at low rates, convert to higher-yield USD, and then buy back yen when risk rises.

In the second half of the year, Taiwan’s forex demand grew by 25%, a result of these combined factors.

The 4 ways to exchange for JPY in Taiwan— which is the most cost-effective?

Many think it’s only at bank counters, but just choosing the exchange method can differ by over 1,500 TWD (based on 50,000 TWD). Let’s break down the actual rates.

Method 1: Bank counter cash exchange

This is the most traditional way—bring cash TWD to a bank branch or airport counter to buy Japanese yen notes.

Why is it the most expensive? Banks use “cash selling rate,” which is 1-2% worse than the “spot rate” online. For example, Taiwan Bank as of December 10, 2025, offers about 0.2060 TWD/JPY (1 TWD = 4.85 JPY), with some banks charging extra handling fees.

Cost estimate: Exchanging 50,000 TWD yields about 245,000 JPY, costing an extra 1,500–2,000 TWD.

Pros: Safe, denominations available, staff assistance.
Cons: Poor rates, limited hours, possible fees.
Best for: Urgent airport needs, small amounts, those unfamiliar with online methods.

Method 2: Online forex exchange + ATM cash withdrawal

Use bank apps or online banking to transfer TWD into a foreign currency account, then sell at the “spot rate” (which is about 1% cheaper than cash selling). If cash is needed, withdraw at an ATM, but extra withdrawal fees apply.

Advantages: Can buy in installments, monitor rates, buy at lows (TWD/JPY below 4.80), average costs.
Cost estimate: 50,000 TWD at spot rate ≈ 243,500 JPY, plus 100 TWD withdrawal fee, costing 500–1,000 TWD more.

Pros: 24/7 operation, better rates, suitable for dollar-cost averaging.
Cons: Need foreign currency account, withdrawal fees.
Best for: Forex experienced, waiting for lower rates, planning to buy JPY deposits.

Method 3: Online currency settlement + airport or branch pickup

The laziest way—reserve online via bank website, input amount, pickup branch, and date. When ready, just bring ID and transaction notice to pick up in person. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this.

Taiwan Bank’s online settlement is fee-free (using TaiwanPay costs only 10 TWD), with about 0.5% rate advantage. You can reserve at airport branches—Taoyuan Airport has 14 Taiwan Bank outlets, 2 of which are 24-hour, super convenient.

Cost estimate: 50,000 TWD costs about 300–800 TWD more.

Pros: Good rates, often no fee, airport pickup option, no queueing.
Cons: Need to book 1-3 days in advance, branch fixed, pickup hours limited.
Best for: Travelers with time planning before departure, wanting to pick up at the airport.

Method 4: Foreign currency ATM 24/7 instant withdrawal

Use chip-enabled bank cards at foreign currency ATMs to withdraw yen directly. Supports 24/7 operation, cross-bank withdrawal fee is only 5 TWD. E.SUN Bank’s foreign currency ATMs allow withdrawal from TWD accounts without forex conversion fee, with a daily limit of 150,000 TWD.

Major pitfall warning: Only about 200 foreign currency ATMs nationwide; peak times (especially airports) often run out of cash. Don’t wait until the last minute to withdraw, or you might miss out.

Cost estimate: 50,000 TWD costs about 800–1,200 TWD more.

Pros: Instant withdrawal, 24/7, low handling fees from TWD account.
Cons: Few locations, fixed denominations (only 1000/5000/10000 JPY), often out of stock at peak times.
Best for: Emergency needs, no time to visit banks.

Cost comparison of the 4 methods

For beginners or lazy users: a combo of “online settlement + airport pickup” or “foreign currency ATM” offers the lowest cost and most convenience.

Is it really worth exchanging for JPY now?

Short answer: Yes, but do it in installments, don’t exchange all at once.

TWD/JPY at 4.85 has appreciated 8.7% since the start of the year, quite favorable for Taiwanese investors. But a key factor to watch is the Bank of Japan (BOJ) actions.

BOJ Governor Ueda Kazuo recently made hawkish comments, boosting rate hike expectations to 80%. The December 19 meeting is expected to raise rates by 0.25 bps to 0.75% (a 30-year high). Japanese bond yields hit a 17-year high of 1.93%. This will influence USD/JPY trends.

Current outlook:

• Short-term fluctuations may dip to around 155
• Medium to long-term, the yen could weaken below 150
• Arbitrage closing risks exist, with potential volatility of 2-5%

Strategy suggestion: Use “installment entry” to average costs, avoid all-in bets. Divide into 3-5 purchases at different times to reduce timing risks.

4 ways to make money with your JPY after exchange

Once you’ve exchanged, the most painful part is letting your money sit idle without earning interest. Here are 4 options suitable for small-scale beginners:

1. JPY fixed deposit — Conservative E.SUN, Taiwan Bank offer foreign currency accounts, can deposit online. Minimum 10,000 JPY, annual interest 1.5–1.8%.

2. JPY savings insurance — Medium-term holding Cathay, Fubon Life offer yen savings policies with guaranteed 2–3% interest.

3. JPY ETFs (like 00675U, 00703) — Growth YuanDa 00675U tracks the yen index, can buy fractional shares via broker apps, suitable for dollar-cost averaging. Management fee 0.4%.

4. Forex swing trading — Advanced Trade USD/JPY or EUR/JPY directly on platforms like Mitrade. Pros: long/short, 24-hour trading, small capital needed.

While yen is a safe haven, it also has two-way volatility. Rate hikes are positive, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) could push it down. Choose based on your risk tolerance.

Quick FAQs

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

Cash rate is the price banks offer for physical notes, paid on the spot, usually 1-2% worse than the spot rate. Spot rate is the T+2 electronic transfer price, closer to international market, more favorable.

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

Using Taiwan Bank’s cash selling rate of 4.85, 10,000 TWD ≈ 48,500 JPY. At spot rate (~4.87), about 48,700 JPY.

Q: What to bring for counter exchange?

ID + passport (foreigners bring passport + residence permit). For amounts over 100,000 TWD, may need source of funds declaration. Under 20, need parent’s consent.

Q: Daily withdrawal limit at foreign currency ATMs?

Varies by bank. CTBC, Taishin often 150,000 TWD/day; E.SUN is 50,000 TWD per transaction, 150,000 TWD/day (including card transactions). RMB withdrawals limited to 20,000 RMB.

3-step mindset for exchanging JPY

Step 1: Choose the right method — Beginners start with “online settlement + airport pickup,” saving costs and effort.

Step 2: Buy in installments — Don’t gamble everything on one shot. Spread over 3-5 times, averaging exchange rates.

Step 3: Don’t just leave it idle — Use JPY deposits, ETFs, or forex trading to earn returns.

The good times for TWD/JPY aren’t frequent. By mastering the installment exchange rhythm and moving your yen into deposits or investments, you can minimize costs and maximize gains. Travel more affordably and add a layer of protection amid global market turbulence.