## The Ultimate Guide to Yen Exchange: Comparing 4 Cost-Effective Channels, Find the Most Savings Here

The TWD to JPY exchange rate has risen to 4.85, Japan travel is heating up again, and investors are starting to position for yen hedging. But did you know? Choosing the wrong exchange channel can waste over ★★★★★1,500. We tested the four most popular ways to acquire yen in Taiwan and clarify the cost differences once and for all.

## Why is it worth exchanging for yen? Not just for travel

When it comes to foreign currency exchange, many people's first thought is yen. There are actually two main reasons behind this.

**Daily Life:: Japanese consumption still mainly relies on cash**
- Travel expenses: In Tokyo and Osaka, most stores accept cash at a rate of 40%, with credit cards making up only 60%
- Purchasing and online shopping: Japanese cosmetics, clothing, anime merchandise often require direct yen payments
- Studying abroad and working holidays: Pre-exchanging can hedge against exchange rate fluctuations

**Investment Perspective: Yen is one of the world's three major safe-haven currencies**
During global turmoil, funds flow into USD, Swiss Franc, and JPY. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, successfully offsetting stock market declines. For Taiwanese investors, exchanging for yen adds an extra layer of protection for the Taiwan stock market.

Plus, the Bank of Japan is on the verge of raising interest rates—Ueda Kazuo's recent hawkish comments have driven market expectations to 80%, and the December 19 meeting is very likely to raise rates by 0.25 basis points to 0.75% (a 30-year high), with a clear long-term interest rate advantage.

## The lowest-cost options: Online currency exchange ＞ Foreign currency ATM ＞ Online forex trading ＞ Counter cash exchange

Based on December 2025 data, with an estimated exchange of 50,000 TWD:

**1st Place: Online currency exchange + Counter pickup (loss of 300-800 yuan)**
Taiwan Bank's "Easy Purchase" online currency exchange has no handling fee (Taiwan Pay payment costs only 10 TWD), with a 0.5% favorable exchange rate. Simply fill in the currency, amount, branch, and date on the official website, complete the transfer, and pick up with ID. Ideal for planning before going abroad, with 14 Taiwan Bank branches and 2 24-hour locations at Taoyuan Airport.

The downside is that reservations are required 1-3 days in advance, and pickup is limited to bank operating hours.

**2nd Place: Real-time withdrawal via foreign currency ATM (loss of 800-1200 yuan)**
Use a chip-enabled bank card to withdraw yen at foreign currency ATMs, available 24/7. The key point is that only a 5 TWD interbank fee is deducted from the TWD account, with no currency exchange fee. E.SUN Bank's foreign currency ATMs have a daily limit of 150,000 TWD, suitable for urgent needs.

However, foreign currency ATM locations are limited (about 200 nationwide), and cash often runs out during peak times. Plan 1-2 days ahead to avoid missing out.

**3rd Place: Online forex trading + foreign currency account (loss of 500-1000 yuan)**
Use a bank app to sell TWD at the spot rate and convert to yen, depositing into a foreign currency account. The exchange rate is about 1% better than cash selling rates. If you need to withdraw cash, you can use the foreign currency account withdrawal function or ATM, but additional exchange spread fees (~100 yuan) will apply.

This method is best suited for those with forex investment experience, as it allows for phased accumulation and average cost. After exchange, you can also transfer yen into fixed deposits (annual interest rate 1.5-1.8%) or buy yen ETFs (such as Yuanta 00675U).

**4th Place: Counter cash exchange at banks (loss of 1500-2000 yuan)**
The most traditional and expensive method. Bring cash TWD directly to a bank or airport counter to exchange for yen, using the cash selling rate (1-2% higher than the spot rate). For example, Taiwan Bank's rate is about 0.2060 TWD per yen, and some banks charge an additional 100-200 TWD handling fee.

Only suitable for urgent airport needs or for elderly who are not familiar with online operations.

## Cost comparison of exchange rates across banks (as of 2025/12/10 rates)

| Bank | Cash Selling Rate (1 JPY / TWD) | Counter Handling Fee | Suitability |
|------|------------------------------|------------------|--------------|
| Taiwan Bank | 0.2060 | Free | ★★★★★ |
| Mega Bank | 0.2062 | Free | ★★★★★ |
| Hua Nan Bank | 0.2061 | Free | ★★★★ |
| CTBC Bank | 0.2065 | Free | ★★★ |
| First Bank | 0.2062 | Free | ★★★★ |
| E.SUN Bank | 0.2067 | 100 TWD per transaction | ★★★ |
| E.SUN Bank (ATM) | 0.2058 | 100 TWD per transaction | ★★★★ (ATM advantage) |
| Cathay United Bank | 0.2063 | 200 TWD per transaction | ★★ |
| Taipei Fubon Bank | 0.2069 | 100 TWD per transaction | ★★ |

Key tip: When withdrawing yen from a foreign currency account, choose banks with fee waivers (Taiwan Bank, Mega Bank, Hua Nan) to save more.

## Is it worth exchanging now? Staggered strategy is more important

As of December 10, 2025, the TWD to JPY rate reached 4.85, up 8.7% from 4.46 at the start of the year. In the second half, Taiwan's forex demand increased by 25%, mainly driven by travel recovery and hedging needs.

**But short-term risks remain**:
- USD/JPY dropped from a high of 160 at the start of the year to 154.58, with a possible short-term rebound to 155
- The BOJ's rate hike expectations are bullish, but global arbitrage unwinding could push the rate down by 2-5%
- Geopolitical conflicts (Taiwan Strait, Middle East) could trigger safe-haven unwinding

**Recommendation: Use a staggered entry, avoid exchanging all at once.** Set target rates (e.g., 4.80, 4.90, 4.95) and exchange in parts to reduce risk.

## After exchanging yen, let it sit—4 investment options

Once you have yen, choose an appreciation strategy based on your risk appetite:

1. **Yen fixed deposit** (conservative): Open a foreign currency account with E.SUN, Taiwan Bank, etc., deposit yen online, starting from 10,000 yen, with an annual interest rate of 1.5-1.8%

2. **Yen insurance policy** (mid-term): Cathay, Fubon life savings insurance, with guaranteed interest rates of 2-3%, offering protection

3. **Yen ETF** (growth): Yuanta 00675U tracks the yen index, can be bought as fractional shares via broker apps, with an annual management fee of 0.4%

4. **Forex swing trading** (advanced): Trade USD/JPY, EUR/JPY, and other currency pairs on professional platforms, with long and short positions, 24-hour trading, suitable for short-term volatility capture

When withdrawing from foreign currency accounts, choosing the right bank is crucial to avoid unnecessary fees that eat into your gains.

## Quick answers to common exchange questions

**Q: What's the difference between cash rate and spot rate?**
Cash rate is the rate offered by banks for physical cash transactions, usually 1-2% higher. Spot rate is the T+2 settlement price in the forex market, closer to international rates but requires waiting for settlement. In simple terms: cash is more expensive, spot is cheaper.

**Q: How much yen can I get with 10,000 TWD?**
Formula: Yen amount = TWD × current rate. Using a cash rate of 4.85, 10,000 TWD ≈ 48,500 yen. Using spot rate 4.87, ≈ 48,700 yen.

**Q: What documents are needed for counter exchange?**
Taiwanese: ID card + passport; foreigners: passport + residence permit. For online reservations, also bring transaction notification. Under 20 requires parental accompaniment; amounts over 100,000 TWD require source of funds declaration.

**Q: What's the daily withdrawal limit at ATMs?**
Different banks have different limits due to new regulations. CTBC: 120,000 TWD/day; Taishin: 150,000 TWD/day; E.SUN: 150,000 TWD/day (including debit). Interbank card single transaction limit is 20,000 TWD. Use your own bank card to avoid 5 TWD interbank fee. Plan ahead during peak times.

## Conclusion

Yen is no longer just pocket money for travel but an asset with hedging and investment attributes. Whether for travel or asset allocation, mastering the principles of "staggered exchange + choosing the right channel + value-added after exchange" can minimize costs and maximize returns.

Beginners are advised to start with "Taiwan Bank online exchange + airport pickup" or "foreign currency ATM," then transfer yen into foreign currency accounts for fixed deposits, ETFs, or swing trading based on needs. This way, you can enjoy cost-effective travel and add a layer of protection during global market fluctuations.