Can the Japanese Yen appreciate further for investment? 2025 Currency Exchange Timing and 4 Major Channels Analysis

Now is the golden time to exchange for Japanese Yen. As of December 10, 2025, the TWD to JPY exchange rate reached 4.85, compared to 4.46 at the beginning of the year, representing an annual appreciation of 8.7% for the Yen. This is not just a “pocket money” issue for travel, but also involves asset allocation and hedging strategies.

Many Taiwanese investors are starting to take the Yen seriously, for a simple reason: the Yen is one of the three major safe-haven currencies globally (the other two are USD and Swiss Franc). When markets are turbulent, funds flow into the Yen for preservation of value—taking the 2022 Russia-Ukraine conflict as an example, the Yen appreciated 8% in one week, effectively buffering a 10% decline in the stock market.

Is it cost-effective to exchange for Yen now? The investment perspective answer

Short-term answer: Yes, but it’s better to do it in installments.

According to the latest market data, the Yen remains in a relatively volatile range. After the US entered a rate-cut cycle, the Yen gained support; simultaneously, the Bank of Japan Governor Ueda Kazuo signaled a hawkish stance, with market expectations that the December 19 meeting will raise interest rates by 0.25 basis points to 0.75% (a 30-year high), and Japanese government bond yields have hit a 17-year high of 1.93%. USD/JPY has fallen from a high of 160 at the start of the year to 154.58, with short-term fluctuations possibly reaching 155, but medium to long-term forecasts suggest it will stay below 150.

Three main reasons to exchange for Yen:

1. Exchange rate gains: An 8.7% appreciation this year is quite substantial, especially under the pressure of TWD depreciation.
2. Hedging: Diversifying assets and hedging against Taiwan stock market volatility.
3. Interest income: Yen fixed deposits offer an annual interest rate of 1.5-1.8%, plus potential exchange gains, making the total return attractive.

Four common ways for Taiwanese to exchange currency

Exchanging for Yen seems simple, but choosing the right channel can save thousands of NT dollars. Here, we compare with a budget of NT$50,000.

Method 1: Bank counter or airport direct exchange

The most traditional way—bring cash NT$ to a bank or airport counter and get Yen cash on the spot.

Cost analysis: Using the “cash selling rate” (1-2% worse than the spot rate), plus fixed handling fees at some banks. For example, Taiwan Bank’s cash selling rate is about 0.2060 NT$/JPY (meaning NT$1 = 4.85 JPY). With NT$50,000, expect a loss of NT$1,500-2,000.

Suitable for: Urgent travel needs, unfamiliar with online operations, or small, temporary exchanges.

Major banks’ cash selling rates for Yen (2025/12/10):

Method 2: Bank app online currency exchange, withdrawal at counter or ATM

Use online banking or app to convert NT$ into Yen and deposit into a foreign currency account, enjoying a better “spot sell rate” (about 1% better than cash rate). When cash is needed, withdraw.

Cost analysis: Saving on the spread with spot rate, but withdrawal incurs additional fees (around NT$100+). For NT$50,000, expect a loss of NT$500-1,000. The advantage is the ability to observe exchange rates over time and average in at lower rates.

Suitable for: Those with foreign currency accounts, long-term holding, or investing in Yen fixed deposits (interest rate 1.5-1.8%).

Method 3: Online currency purchase, pick-up at airport or designated branches

No need to open a foreign currency account. Fill in currency, amount, pick-up location, and date on the bank’s website. After completion, bring ID and transaction notification to the counter for pickup. Taiwan Bank’s “Easy Purchase” online currency purchase is fee-free (pay NT$10 via TaiwanPay), with about 0.5% better rates.

Cost analysis: NT$50,000 may cost NT$300-800 in losses. The key advantage is the ability to pre-book airport branches, with 14 Taiwan Bank outlets at Taoyuan Airport (2 open 24 hours). You can withdraw directly before departure without additional currency exchange.

Suitable for: Planned travelers who want to settle everything before departure, especially those with fixed travel dates.

Method 4: Foreign currency ATM withdrawal 24/7

Use a chip-enabled debit card at foreign currency ATMs to withdraw Yen cash, supporting 24-hour operation, with a cross-bank fee of NT$5 per withdrawal. Using a Fubon Bank foreign currency ATM to withdraw Yen from a NT$ account, with a daily limit of NT$150,000, no exchange fee.

Cost analysis: NT$50,000 may cost NT$800-1,200 in losses. Most flexible, but limited locations (~200 nationwide), cash may run out during peak times, and denominations are fixed (1,000/5,000/10,000 Yen).

Suitable for: Those who don’t have time to visit banks, need temporary cash, or want to avoid business hours.

Cost comparison table of 4 methods

Our recommendation: For users with NT$50,000–NT$200,000 budgets, the best combo is “online currency purchase + ATM withdrawal,” balancing cost and flexibility.

After exchanging for Yen: let your money keep growing

Once you have Yen, let it sit without interest, and choose subsequent allocation based on your risk appetite:

Conservative: Yen fixed deposit

• Minimum NT$10,000, annual interest 1.5-1.8%
• E.SUN, Taiwan Bank, etc., offer foreign currency accounts
• Suitable for capital preservation

Mid-term: Yen insurance policy

• Savings insurance with guaranteed 2-3% interest
• Cathay, Fubon Life offer options
• Balances protection and returns

Growth: Yen ETFs

• Yuanta 00675U, 00703 tracking Yen index
• Can buy fractional shares via broker apps, suitable for dollar-cost averaging
• Management fee 0.4% annually

Advanced: Forex swing trading

• Direct trading of USD/JPY or EUR/JPY
• Long/short, 24-hour trading, low minimum investment
• Requires basic trading knowledge

Common questions about exchanging Yen

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

Cash rate applies to physical cash transactions (bills, coins), with the advantage of immediate delivery but 1-2% higher cost than the spot rate due to fees. Spot rate is used for electronic transfers, no physical delivery (T+2 settlement), and is closer to international market prices.

Q: How much Yen can I get with NT$10,000?

Using Taiwan Bank’s cash selling rate of 4.85, NT$10,000 can buy about 48,500 Yen. Using the spot selling rate of 4.87, it’s about 48,700 Yen, a difference of 200 Yen (~NT$40).

Q: What do I need to bring for counter exchange?

Taiwanese citizens: ID card + passport; foreigners: passport + residence permit. If pre-booked online, also bring transaction notification. Under 20 years old need parental accompaniment; amounts over NT$100,000 may require source of funds declaration.

Q: What’s the limit for foreign currency ATM withdrawals?

From 2025, most banks set daily limits at NT$100,000–NT$150,000 equivalent:

It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees, and plan ahead during peak times.

Final advice

The Yen is no longer just travel “pocket money,” but an asset with hedging and investment value. Whether planning for next year’s Japan trip or taking advantage of TWD depreciation for asset allocation, following the principles of “batch exchange” and “don’t leave your money idle after exchange” can minimize costs.

For beginners, start with “Taiwan Bank online currency purchase + airport pickup” or “foreign currency ATM,” then transition into fixed deposits, ETFs, or swing trading based on your needs. This way, you not only enjoy more cost-effective travel but also add a layer of protection during global market turbulence.