Japanese Yen Exchange Guide: Comparison of 4 Major Channels' Costs + Investment Value Analysis

Is it worth exchanging for Japanese Yen? Dual benefits for investment and daily life

December 10, 2025, the TWD/JPY exchange rate surged to 4.85, hitting a new high for the year. Compared to 4.46 at the beginning of the year, the yen has appreciated over 8% this year, presenting a valuable opportunity for Taiwanese investors and travelers.

The Japanese Yen is not just a travel currency but also one of the world’s top three safe-haven assets (alongside the US dollar and Swiss franc). Japan’s stable economy, low debt, and transparent central bank policies make the yen a safe harbor during global market turbulence. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in one week, effectively hedging stock market declines.

For Taiwanese, the practical value of exchanging for yen includes:

Daily life: Travel shopping (only 60% of Japanese credit cards are widely accepted), purchasing Japanese cosmetics and fashion, funding for studying abroad and working holidays.

Investment: Yen fixed deposits (annual interest rate 1.5-1.8%), yen ETFs (such as 00675U), forex swing trading (USD/JPY), arbitrage trading (taking advantage of Japan’s low interest rates and high USD interest rate spreads).

Compared to other safe-haven currencies like AUD, the yen offers higher liquidity, lower costs, and more trading tools.

Is now a good time to exchange for yen?

In the short term, the yen is fluctuating within a range. The Bank of Japan Governor Ueda Kazuo recently expressed a hawkish stance, with market expectations of an 80% chance of interest rate hikes on December 19, raising rates by 0.25 to 0.75% (a 30-year high), with Japanese bond yields reaching 17-year highs of 1.93%. The US-Japan interest rate differential has gradually narrowed from 4.0% at the start of the year, and the US dollar’s strength is beginning to weaken.

USD/JPY has fallen from a high of 160 at the start of the year to around 154.58, likely to oscillate around 155 in the short term, but medium to long-term forecasts suggest further weakening below 150.

Conclusion: Exchanging for yen now is cost-effective, but consider phased entry. Avoid exchanging all at once to prevent buying at a high point. In the second half of the year, Taiwan’s currency exchange demand increased by 25%, mainly driven by travel recovery and risk hedging, reflecting market optimism.

Cost comparison of Taiwan’s 4 major yen exchange channels

Many think exchanging yen is just going to the bank counter, but different channels can have price differences costing you thousands more. Here’s a real price comparison:

Option 1: Cash exchange at bank counter (most traditional but costly)

Bring cash in TWD to a bank branch or airport counter to exchange for yen cash. Banks use the “cash selling rate,” which is about 1-2% worse than the international spot rate. Plus, possible service fees, making the overall cost higher.

For example, Taiwan Bank (2025/12/10): Cash selling rate about 0.2060 TWD/JPY (1 TWD = 4.85 JPY). 50,000 TWD can buy about 242,500 JPY, but with a loss of about 1,500-2,000 TWD due to exchange margin.

Major banks’ counter rates and fees (updated 2025/12/10):

Advantages: Safe, reliable, denominations available (1,000, 5,000, 10,000 JPY), staff assistance.

Disadvantages: Exchange margin, limited business hours (9:00-15:30), service fees may add up.

Suitable for: Those unfamiliar with online operations, small urgent cash needs (e.g., at the airport).

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

Use bank app or online banking to convert TWD to yen, deposit into a foreign currency account, enjoying the “spot selling rate” (about 1% better than cash selling rate). When withdrawing cash, pay the exchange margin fee (interbank around 5-100 TWD).

For example, E.SUN Bank: 50,000 TWD can be exchanged for about 243,700 JPY, with a cost loss of about 500-1,000 TWD. Suitable for observing exchange rate trends and entering in phases when TWD/JPY is below 4.80.

Advantages: 24-hour operation, ability to buy in phases for average cost, better exchange rates.

Disadvantages: Need to open a foreign currency account, withdrawal fees apply.

Suitable for: Those experienced in forex, using foreign currency accounts regularly, wanting to buy in phases at low points.

Option 3: Online currency exchange + airport pickup (best before travel)

No need for a foreign currency account. Book via bank website, specify currency, amount, pickup branch, and date. After remittance, go to the counter with ID and transaction notice to pick up. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service, allowing reservation for airport pickup.

Taiwan Bank: No service fee (pay via TaiwanPay, only 10 TWD), about 0.5% better rate, 50,000 TWD can get about 244,300 JPY, with a loss of about 300-800 TWD. Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours), convenient for travel day pickup.

Advantages: Better exchange rate, often no service fee, can specify airport pickup, well-planned.

Disadvantages: Need to book 1-3 days in advance, pickup during business hours only, branches cannot change pickup location.

Suitable for: Planned travelers, pre-travel investors.

Option 4: Foreign currency ATM withdrawal (most flexible but limited locations)

Use chip-enabled bank card at foreign currency ATMs to withdraw yen cash, supporting 24-hour operation, interbank withdrawals (from TWD account, only 5 TWD fee). About 200 ATMs nationwide.

SinoPac Bank: Withdraw yen from TWD account, daily limit 150,000 TWD, no exchange fee, 50,000 TWD can get about 243,500 JPY, with a cost loss of about 800-1,200 TWD.

ATM withdrawal limits (2025 new system):

Advantages: Instant withdrawal, high flexibility, low interbank fee.

Disadvantages: Limited locations, fixed denominations (1,000/5,000/10,000 JPY), cash may run out during peak times.

Suitable for: Those with no time to visit banks, needing urgent cash.

Complete cost comparison of 4 options

Beginner tips: For a budget of 50,000-200,000 TWD, “online exchange + airport pickup” or “foreign currency ATM” are the most cost-effective and easiest options.

Value-added options after exchanging yen

Don’t let your yen sit idle (no interest). Consider the following allocations:

1. Yen fixed deposit (conservative): E.SUN, Taiwan Bank open foreign currency accounts, starting from 10,000 yen, annual interest 1.5-1.8%.

2. Yen insurance policies (medium-term hold): Cathay, Fubon life savings insurance, guaranteed interest 2-3%.

3. Yen ETFs (growth-oriented): Yuanta 00675U tracking yen index, can buy fractional shares, management fee 0.4% annually, diversify risk.

4. Forex swing trading (active): Trade USD/JPY or EUR/JPY on trading platforms, long/short, 24-hour operation, capture short-term fluctuations.

The BOJ rate hikes are positive for the yen, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) may suppress it. Choose suitable allocations based on your risk tolerance.

Quick answers to common questions

Q1: How much is the difference between cash rate and spot rate?

Cash rate (Cash Rate) applies to physical cash transactions, with the advantage of immediate receipt, but usually 1-2% worse than the spot rate. Spot rate (Spot Rate) used for electronic transfers, T+2 settlement, more favorable and close to international market prices.

Q2: How much yen can I get with 10,000 TWD?

Calculation: Yen amount = TWD × current rate. At 4.85, 10,000 TWD ≈ 48,500 JPY (cash sale). Using spot rate 4.87, about 48,700 JPY, difference of 200 JPY (TWD 40).

Q3: What ID do I need to bring for foreign currency exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. Companies: business registration proof. If pre-booked online, also bring transaction notice. Under 20 need parent’s accompaniment; large amounts (>100,000 TWD) require source declaration.

Q4: How does AUD compare to JPY?

AUD is also a safe-haven currency, but less liquid and with higher transaction costs than JPY. The BOJ’s rate hike signals are clearer, with stronger recent appreciation potential. JPY has more diverse fixed deposit and ETF tools. Prioritize JPY, with AUD as a secondary option.

Summary: The golden rule for exchanging yen

The yen has evolved from “travel pocket money” to an asset with dual hedging and investment value. By following the two principles of “phased exchange + immediate allocation after exchange,” you can minimize costs and maximize returns.

Beginners should start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” which are the safest and simplest. Then, based on needs, move into fixed deposits, ETFs, or forex swing trading. This way, you not only enjoy more cost-effective travel but also gain an extra layer of protection during global market fluctuations.