How to convert TWD to JPY? An analysis of the 4 most cost-effective currency exchange options in 2025

Now is a great time to exchange TWD for JPY

On December 10, 2025, the TWD/JPY exchange rate rose above 4.85, meaning 1 TWD can be exchanged for 4.85 JPY—an 8.7% increase from 4.46 at the beginning of the year. For travelers planning to visit Japan or investors doing asset allocation, this is indeed a noteworthy moment. Market data shows that Taiwan’s foreign exchange demand increased by 25% in the second half of the year, driven mainly by two factors: a revival in tourism leading to outbound travel, and investors using the yen’s hedging properties for asset offsetting.

But the key question is: Is it cost-effective to exchange for yen now? The answer is “conditional cost-effective.” The yen exchange rate is currently in a fluctuation range, with short-term oscillations between 154-155, but the long-term trend is expected to stay below 150. Therefore, the best strategy is not to exchange all at once but to gradually enter the market to average the cost.

Why exchange for yen? Three layers of value analysis

Daily consumption: travel, shopping, studying abroad

Consumption in Tokyo, Osaka, and Hokkaido still relies heavily on cash (credit card penetration is only 60%). Whether shopping, skiing, or vacationing, cash yen is almost indispensable. Additionally, purchasing Japanese cosmetics, clothing, anime merchandise, and planning to study or work in Japan all require pre-prepared yen funds.

Financial aspect: one of the three major global safe-haven currencies

The yen, along with the US dollar and Swiss franc, is considered a global safe-haven currency due to Japan’s stable economic fundamentals and healthy government debt structure. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a single week, while global stock markets fell by 10%—a counterintuitive performance that exemplifies safe-haven assets. For Taiwanese investors, converting TWD to JPY is not only for travel preparations but also an effective tool to hedge against Taiwan stock market risks.

Arbitrage investment aspect: low-interest financing currency

The Bank of Japan maintains an ultra-low interest rate policy (currently 0.5%), making the yen a “financing currency” worldwide. Savvy arbitrage traders borrow yen at low interest, convert to higher-yield USD investments, and exploit the 4.0% interest rate differential. When risks rise, they close the position by buying back yen. This strategy is attractive to investors with forex experience.

Yen interest rate hikes imminent, short-term volatility increases

BOJ Governor Ueda Kazuo recently made hawkish comments, pushing expectations of rate hikes to 80%. The market anticipates a 0.25 basis point increase to 0.75% at the December 19 meeting (a 30-year high). Japanese bond yields have hit a 17-year high of 1.93%, and USD/JPY has fallen from the early-year high of 160 to around 154.58. In the short term, the exchange rate may test 155, but medium to long-term forecasts suggest it will stabilize below 150.

What does this mean? For travelers, small batch currency exchanges carry lower risk; for investors, caution is needed regarding arbitrage closing risks, which could cause 2-5% fluctuations.

Four practical currency exchange options for converting TWD to JPY

Many mistakenly believe there is only one way: go to the bank, hand over TWD, and receive yen. In reality, choosing different channels can result in cost differences of NT$1,000-2,000 (based on exchanging NT$50,000). Here, we analyze the cost-benefit of four options:

Option 1: Over-the-counter cash exchange—most traditional but most expensive

Bring cash TWD directly to a bank branch or airport counter to exchange for yen cash. This method is straightforward but costly.

Cost structure: Banks use “cash selling rates,” which are about 1-2% worse than the spot rate. For example, Taiwan Bank’s rate on December 10, 2025, is 0.2060 TWD per yen (equivalent to 4.85 yen per TWD). Some banks also charge NT$100-200 handling fees.

Quick reference for bank rates and fees:

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

Suitable for: Urgent needs (e.g., at the airport discovering insufficient cash), small amounts, elderly unfamiliar with online methods

Option 2: Online exchange + counter or ATM withdrawal—balanced approach

Use bank app or online banking to convert TWD to yen and deposit into a foreign currency account (using “spot sell rate,” better than cash rate by about 1%). Then, withdraw cash via counter or foreign ATM as needed.

Cost structure: Online exchange offers better rates, but cash withdrawal incurs additional fees (~NT$100+). Interbank ATM withdrawals cost NT$5 per transaction; in-bank withdrawals are free.

Advantages: Monitor exchange rates, enter gradually at low points (e.g., TWD/JPY below 4.80), averaging costs. Also, transfer yen into bank fixed deposits with current annual interest rates of 1.5-1.8%, achieving “exchange without lying flat.”

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

Suitable for: Investors with forex experience, mid-term holding plans, seeking to earn deposit interest

Option 3: Online currency settlement + airport pickup—planner’s favorite

No need to pre-open a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website, complete transfer, then present ID and transaction notice to pick up in person. Taiwan Bank and Mega Bank offer this service, with appointment options at airport branches—ideal for frequent travelers.

Cost advantage: Taiwan Bank’s “Easy Purchase” online settlement waives handling fees (pay NT$10 via Taiwan Pay), with about 0.5% better rates. Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours), allowing travelers to pick up on departure day without additional exchange.

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

Suitable for: Planned trips, pre-arranged travel dates, seamless airport pickup; also suitable for small, multiple trips with scheduled reservations

Option 4: Foreign currency ATM withdrawal—emergency tool

Use a chip-enabled bank card at foreign currency ATMs to withdraw yen cash directly, operational 24/7, with only NT$5 cross-bank fee. No exchange fee, instant cash, maximum flexibility.

Limitations: Vary by bank; for example, Fubon Bank limits NT$150,000 equivalent per day; E.Sun Bank limits NT$50,000 (50 banknotes); CTBC Bank limits NT$120,000 equivalent. Post-October 2025, digital account limits are generally reduced to NT$100,000/day for fraud prevention.

Withdrawal limits overview:

Risk reminder: Limited points (~200 nationwide), fixed denominations (1,000/5,000/10,000 yen), cash may run out during peak hours (especially at airports). Plan ahead to avoid临时抱佛脚。

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

Suitable for: Last-minute needs, no time to visit bank, 24-hour flexible pickup

Summary table of four options

Our recommendation: For budgets NT$50,000-200,000, the best combo is “online settlement + ATM withdrawal”—reserve large amounts online at the airport for cost savings, and use ATM for small, urgent needs.

Next step after converting TWD to JPY: Don’t let your money sit idle

Many people just pack the yen into their luggage. Smarter fund managers will let idle yen generate returns:

1. Yen fixed deposit—conservative
Open a foreign currency account with E.Sun or Taiwan Bank, deposit yen online. Minimum NT$10,000, annual interest 1.5-1.8%. Suitable for 3-6 month trips, balancing capital preservation and interest income.

2. Yen insurance policy—mid-term
Cathay, Fubon offer yen savings insurance with guaranteed interest rates of 2-3%, terms of 2-5 years. Suitable for investors with idle funds not needing immediate access.

3. Yen ETFs—growth-oriented
Yuanta 00675U, Cathay 00703, and other yen index funds can be bought in broker apps via fractional shares for regular investment. Management fee around 0.4%, ideal for those optimistic about long-term yen appreciation.

4. Forex trading—swing trading
Trade USD/JPY, EUR/JPY directly on forex platforms, open 24 hours, with options for stop-loss, take-profit, trailing stops, real-time signals. Suitable for experienced swing traders with small capital.

Quick FAQs

Q. What’s the difference between cash rate and spot rate?
Cash rate is the buy/sell rate banks offer for physical cash (notes/coins), convenient but usually 1-2% worse than the international market. Spot rate is the rate for FX transactions settled within two business days (T+2), used for electronic transfers, interbank settlements, or foreign currency accounts, and closely aligns with market prices.

Q. How much yen can I get with NT$10,000?
Using Taiwan Bank’s December 10, 2025, rate of 0.2060 TWD/JPY, NT$10,000 exchanges for about 48,500 yen. With online spot rate (~4.87), about 48,700 yen—difference of roughly 200 yen (NT$40).

Q. What documents are needed for over-the-counter exchange?
Taiwanese: ID card + passport; foreigners: passport + residence permit. For corporate exchange, business registration needed. Pre-booked exchanges require transaction notices. Under 20 need parental consent; large amounts (>NT$100,000) may require source declaration.

Q. Are there withdrawal limits for foreign currency ATMs?
Yes. Post-October 2025, digital accounts are generally capped at NT$100,000/day. For bank cards, typical limits are NT$120,000-150,000 equivalent per day; single transaction limit often NT$20,000. Consider spreading withdrawals or using your bank’s card to save cross-bank fees.

Conclusion: Seize the timing, enter gradually

Yen is no longer just pocket money for travel but an asset class with hedging and investment properties. Whether for next year’s Japan trip or asset transfer amid TWD depreciation, remember the principle of “gradual TWD to JPY + don’t lie flat after exchange.” Beginners can start with “Taiwan Bank online settlement + airport pickup” or “foreign currency ATM,” while advanced investors can combine fixed deposits, ETFs, or forex swing trading to turn yen funds into a strategic advantage amid market fluctuations. This way, traveling becomes more cost-effective, and your assets gain better protection.