Why is the Japanese Yen Worth Paying Attention To?
When it comes to foreign currencies, Taiwanese people’s first choice is often the Japanese Yen. But did you know? The importance of the Yen goes far beyond just “travel expenses.”
From a lifestyle perspective, Japan travel, shopping via purchasing agents, studying abroad, and working part-time still rely heavily on cash (local credit card penetration is only 60%). But its deeper value lies in the financial markets— the Yen is one of the world’s three major safe-haven currencies, alongside the US dollar and Swiss franc. During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a single week, successfully offsetting a 10% decline in the stock market. For Taiwanese investors, holding Yen is not just entertainment; it’s an insurance against Taiwan stock market volatility.
Additionally, Japan’s long-term ultra-low interest rate policy (0.5%) makes the Yen a “funding currency,” attracting international arbitrage trading. Many investors borrow Yen at low interest, convert to higher-yielding USD (the USD-JPY interest rate differential reaches 4.0%), and realize profits when risk appetite increases.
How will the Yen exchange rate move by December 2025?
Currently, the TWD/JPY exchange rate is about 4.85, meaning 1 TWD equals 4.85 Yen. Compared to the beginning of the year at 4.46, it has appreciated by 8.7%, making the exchange gain quite substantial. Compared to the Euro exchange rate (about 15 Euros for around TWD 540), Yen offers more flexibility and trading volume.
Recently, Bank of Japan Governor Ueda Kazuo made hawkish comments, with market expectations of interest rate hikes reaching 80%, and a projected increase to 0.75% at the December 19 meeting (a 30-year high). The US has entered a rate-cutting cycle, so the Yen may find support. USD/JPY has fallen from 160 at the start of the year to 154.58; short-term fluctuations may bring it to around 155, but in the medium to long term, it’s expected to stabilize below 150.
Conclusion: Is it worth exchanging now? Conditionally yes. The exchange rate has risen 8.7%, but the Yen still fluctuates within a range. The best strategy is to buy in installments rather than all at once.
Four main ways to exchange Yen, with cost breakdowns
Bank counter cash exchange — the most traditional, highest cost
Bring cash in TWD directly to a bank or airport counter to get Yen cash on the spot. Simple to operate, but uses the “cash selling rate,” which is 1-2% worse than the spot rate. Taiwan Bank’s rate as of 2025/12/10 is 0.2060 TWD/JPY (or 4.85 Yen/TWD), with some banks adding fixed handling fees.
For 50,000 TWD, the loss is about 1,500-2,000 TWD.
Suitable for: Travelers unfamiliar with online operations or in urgent need (e.g., at the airport).
Bank fee references (2025/12/10):
Taiwan Bank: 0.2060 TWD/JPY, no handling fee
Mega International Bank: 0.2062 TWD/JPY, no handling fee
CTBC Bank: 0.2065 TWD/JPY, no handling fee
E.SUN Bank: 0.2067 TWD/JPY, 100 TWD per transaction
Use online banking app to convert TWD to foreign currency account, using the spot selling rate (about 1% discount). When cash is needed, withdraw in person at the bank or ATM. This method allows you to observe the rate, buy in installments at low points (e.g., below 4.80), and average your cost.
For 50,000 TWD, the cost is about 500-1,000 TWD.
Advantages: 24/7 operation, better rates, risk diversification through installment buying. When the rate rises, you can also profit from exchange differences.
Disadvantages: Need to open a foreign currency account first; withdrawal fees apply (5-100 TWD cross-bank).
Advanced tip: After buying Yen, don’t leave it idle. E.SUN and Taiwan Bank offer Yen fixed deposits with annual interest rates of 1.5-1.8%, starting from 10,000 Yen.
Online currency settlement + airport pickup — the best plan for travel
No need for a foreign currency account. Fill out exchange info on the bank’s website and specify a branch for pickup. Taiwan Bank’s “Easy Purchase” online settlement is fee-free (pay with TaiwanPay, only 10 TWD), with a 0.5% rate advantage. Taoyuan Airport has 14 Taiwan Bank branches (2 open 24 hours), with appointment options.
For 50,000 TWD, the cost is about 300-800 TWD.
Suitable for: Planned travelers who want to ensure funds are ready before departure.
Reminder: At least 1-3 days’ advance booking required; pickup is limited to bank hours, and branch changes are not allowed.
Foreign currency ATM — 24-hour solution for urgent needs
Use a chip-enabled financial card to withdraw Yen cash at foreign currency ATMs. Available 24/7, with only 5 TWD cross-bank fee. E.SUN Bank limits daily withdrawal to 150,000 TWD, no exchange fee. Drawbacks include limited locations (~200 nationwide) and fixed denominations (1,000, 5,000, 10,000 Yen).
For 50,000 TWD, the cost is about 800-1,200 TWD.
Reminder: During peak times (e.g., airports), cash may run out; avoid last-minute attempts. By the end of 2025, Japan ATM services will require Mastercard or Cirrus international cards.
Cost comparison of the four methods
Method
Advantages
Disadvantages
Estimated Cost (TWD 50,000)
Best suited for
Counter cash exchange
Safe, full denominations
Exchange rate spread, limited hours
1,500-2,000
Urgent needs
Online exchange
24/7, installment buying
Need foreign account, withdrawal fees
500-1,000
Forex investment
Online settlement
Low fees, airport convenience
Need reservation, limited time
300-800
Travel planning
Foreign currency ATM
Instant 24/7, low cross-bank fee
Limited locations, fixed denominations
800-1,200
Urgent needs
Our recommendation: For a budget of 5-20 million TWD, the most cost-effective combo is “online settlement + foreign currency ATM”—lock in low rates online in advance, then use ATM for emergency top-ups.
After exchanging Yen, what’s next?
Don’t let your money sit idle earning no interest. The Yen you’ve exchanged can be allocated to the following investments:
1. Yen fixed deposit — the safest choice. Annual interest rate 1.5-1.8%, minimum 10,000 Yen, available online via E.SUN and Taiwan Bank.
2. Yen insurance policy — medium-term holding. Cathay and Fubon life’s savings insurance offer guaranteed rates of 2-3%.
3. Yen ETFs (00675U, 00703) — growth-oriented. Yuanta 00675U tracks Yen index, with an annual management fee of 0.4%, suitable for dollar-cost averaging and risk diversification.
4. Forex trading (USD/JPY, EUR/JPY) — swing trading. USD/JPY is a classic currency pair, with both long and short opportunities, 24-hour trading, suitable for those who understand exchange rate fluctuations.
Risk warning: While the Yen is a strong hedge, it also experiences two-way volatility. BOJ rate hikes are positive but may trigger global arbitrage unwinding. Geopolitical shocks (Taiwan Strait, Middle East) can cause short-term swings of 2-5%.
Common Q&A
Q. What’s the difference between cash exchange rate and spot rate spread?
Cash exchange rate is used for physical cash buying/selling, settled immediately but with a 1-2% spread. Spot rate is for electronic transfers, settled T+2, with better rates but longer wait. Choose based on whether you need physical cash.
Q. What documents are needed for currency exchange?
Taiwanese: ID card + passport; foreigners: passport + residence permit. For online reservations, also bring transaction notification. Large amounts (over TWD 100,000) require source of funds declaration. Under 20 need parental accompaniment.
Q. What’s the daily limit for foreign currency ATMs?
Varies by bank: China Trust equivalent of TWD 120,000, Taishin TWD 150,000, E.SUN TWD 150,000. After 2025, limits generally reduce to TWD 100,000-150,000; RMB single transaction limit is TWD 20,000. Consider splitting withdrawals or using your own bank card to avoid cross-bank fees.
Final advice
The Yen is no longer just for travel pocket money; it’s an asset with hedging and investment value. Follow the two principles of “buy in installments” and “don’t leave it idle after buying” to lower costs and maximize gains. Beginners can start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then advance into investments as needed. This way, you can enjoy more cost-effective travel and add a layer of protection during global turbulence.
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Japanese Yen Exchange Analysis: Should You Exchange Now? Revealing the Costs of 4 Channels
Why is the Japanese Yen Worth Paying Attention To?
When it comes to foreign currencies, Taiwanese people’s first choice is often the Japanese Yen. But did you know? The importance of the Yen goes far beyond just “travel expenses.”
From a lifestyle perspective, Japan travel, shopping via purchasing agents, studying abroad, and working part-time still rely heavily on cash (local credit card penetration is only 60%). But its deeper value lies in the financial markets— the Yen is one of the world’s three major safe-haven currencies, alongside the US dollar and Swiss franc. During the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a single week, successfully offsetting a 10% decline in the stock market. For Taiwanese investors, holding Yen is not just entertainment; it’s an insurance against Taiwan stock market volatility.
Additionally, Japan’s long-term ultra-low interest rate policy (0.5%) makes the Yen a “funding currency,” attracting international arbitrage trading. Many investors borrow Yen at low interest, convert to higher-yielding USD (the USD-JPY interest rate differential reaches 4.0%), and realize profits when risk appetite increases.
How will the Yen exchange rate move by December 2025?
Currently, the TWD/JPY exchange rate is about 4.85, meaning 1 TWD equals 4.85 Yen. Compared to the beginning of the year at 4.46, it has appreciated by 8.7%, making the exchange gain quite substantial. Compared to the Euro exchange rate (about 15 Euros for around TWD 540), Yen offers more flexibility and trading volume.
Recently, Bank of Japan Governor Ueda Kazuo made hawkish comments, with market expectations of interest rate hikes reaching 80%, and a projected increase to 0.75% at the December 19 meeting (a 30-year high). The US has entered a rate-cutting cycle, so the Yen may find support. USD/JPY has fallen from 160 at the start of the year to 154.58; short-term fluctuations may bring it to around 155, but in the medium to long term, it’s expected to stabilize below 150.
Conclusion: Is it worth exchanging now? Conditionally yes. The exchange rate has risen 8.7%, but the Yen still fluctuates within a range. The best strategy is to buy in installments rather than all at once.
Four main ways to exchange Yen, with cost breakdowns
Bank counter cash exchange — the most traditional, highest cost
Bring cash in TWD directly to a bank or airport counter to get Yen cash on the spot. Simple to operate, but uses the “cash selling rate,” which is 1-2% worse than the spot rate. Taiwan Bank’s rate as of 2025/12/10 is 0.2060 TWD/JPY (or 4.85 Yen/TWD), with some banks adding fixed handling fees.
For 50,000 TWD, the loss is about 1,500-2,000 TWD.
Suitable for: Travelers unfamiliar with online operations or in urgent need (e.g., at the airport).
Bank fee references (2025/12/10):
Online exchange + in-person withdrawal — flexible installment buying
Use online banking app to convert TWD to foreign currency account, using the spot selling rate (about 1% discount). When cash is needed, withdraw in person at the bank or ATM. This method allows you to observe the rate, buy in installments at low points (e.g., below 4.80), and average your cost.
For 50,000 TWD, the cost is about 500-1,000 TWD.
Advantages: 24/7 operation, better rates, risk diversification through installment buying. When the rate rises, you can also profit from exchange differences.
Disadvantages: Need to open a foreign currency account first; withdrawal fees apply (5-100 TWD cross-bank).
Advanced tip: After buying Yen, don’t leave it idle. E.SUN and Taiwan Bank offer Yen fixed deposits with annual interest rates of 1.5-1.8%, starting from 10,000 Yen.
Online currency settlement + airport pickup — the best plan for travel
No need for a foreign currency account. Fill out exchange info on the bank’s website and specify a branch for pickup. Taiwan Bank’s “Easy Purchase” online settlement is fee-free (pay with TaiwanPay, only 10 TWD), with a 0.5% rate advantage. Taoyuan Airport has 14 Taiwan Bank branches (2 open 24 hours), with appointment options.
For 50,000 TWD, the cost is about 300-800 TWD.
Suitable for: Planned travelers who want to ensure funds are ready before departure.
Reminder: At least 1-3 days’ advance booking required; pickup is limited to bank hours, and branch changes are not allowed.
Foreign currency ATM — 24-hour solution for urgent needs
Use a chip-enabled financial card to withdraw Yen cash at foreign currency ATMs. Available 24/7, with only 5 TWD cross-bank fee. E.SUN Bank limits daily withdrawal to 150,000 TWD, no exchange fee. Drawbacks include limited locations (~200 nationwide) and fixed denominations (1,000, 5,000, 10,000 Yen).
For 50,000 TWD, the cost is about 800-1,200 TWD.
Reminder: During peak times (e.g., airports), cash may run out; avoid last-minute attempts. By the end of 2025, Japan ATM services will require Mastercard or Cirrus international cards.
Cost comparison of the four methods
Our recommendation: For a budget of 5-20 million TWD, the most cost-effective combo is “online settlement + foreign currency ATM”—lock in low rates online in advance, then use ATM for emergency top-ups.
After exchanging Yen, what’s next?
Don’t let your money sit idle earning no interest. The Yen you’ve exchanged can be allocated to the following investments:
1. Yen fixed deposit — the safest choice. Annual interest rate 1.5-1.8%, minimum 10,000 Yen, available online via E.SUN and Taiwan Bank.
2. Yen insurance policy — medium-term holding. Cathay and Fubon life’s savings insurance offer guaranteed rates of 2-3%.
3. Yen ETFs (00675U, 00703) — growth-oriented. Yuanta 00675U tracks Yen index, with an annual management fee of 0.4%, suitable for dollar-cost averaging and risk diversification.
4. Forex trading (USD/JPY, EUR/JPY) — swing trading. USD/JPY is a classic currency pair, with both long and short opportunities, 24-hour trading, suitable for those who understand exchange rate fluctuations.
Risk warning: While the Yen is a strong hedge, it also experiences two-way volatility. BOJ rate hikes are positive but may trigger global arbitrage unwinding. Geopolitical shocks (Taiwan Strait, Middle East) can cause short-term swings of 2-5%.
Common Q&A
Q. What’s the difference between cash exchange rate and spot rate spread?
Cash exchange rate is used for physical cash buying/selling, settled immediately but with a 1-2% spread. Spot rate is for electronic transfers, settled T+2, with better rates but longer wait. Choose based on whether you need physical cash.
Q. What documents are needed for currency exchange?
Taiwanese: ID card + passport; foreigners: passport + residence permit. For online reservations, also bring transaction notification. Large amounts (over TWD 100,000) require source of funds declaration. Under 20 need parental accompaniment.
Q. What’s the daily limit for foreign currency ATMs?
Varies by bank: China Trust equivalent of TWD 120,000, Taishin TWD 150,000, E.SUN TWD 150,000. After 2025, limits generally reduce to TWD 100,000-150,000; RMB single transaction limit is TWD 20,000. Consider splitting withdrawals or using your own bank card to avoid cross-bank fees.
Final advice
The Yen is no longer just for travel pocket money; it’s an asset with hedging and investment value. Follow the two principles of “buy in installments” and “don’t leave it idle after buying” to lower costs and maximize gains. Beginners can start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” then advance into investments as needed. This way, you can enjoy more cost-effective travel and add a layer of protection during global turbulence.