Daily Exchange Guide: Comparing the Costs of 4 Channels, Did You Choose the Right One?

In December 2025, the TWD to JPY exchange rate touched 4.85, and travel to Japan and JPY hedging once again became hot topics. However, there are many channels for currency exchange—bank counters, online remittance, foreign currency ATMs, and even Hong Kong currency brokers—so which route is the most cost-effective? This article breaks down real rates to help you find the most economical currency exchange strategy.

Why is JPY worth exchanging? The dual value from travel to hedging

When it comes to foreign currency allocation, Taiwanese are most familiar with JPY. This is not only because Japan is a popular travel destination but also because of JPY’s multiple roles.

Travel and Consumption Needs

Shopping in Tokyo, Osaka, and skiing in Hokkaido, Japanese cash spending culture still dominates (credit card penetration is only about 60%). For enthusiasts of Japanese cosmetics, fashion, and anime merchandise ordering via purchasing agents or Japanese websites, direct payment in JPY is often required. Those planning to study abroad or work holiday can exchange in advance to avoid sudden fluctuations.

Financial Hedging Attributes

JPY is one of the three major safe-haven currencies globally (the other two are USD and Swiss Franc). Japan’s economy is stable, with relatively low debt, and during market turbulence, funds flow into JPY—during the Russia-Ukraine conflict in 2022, JPY appreciated 8% in a single week, while the stock market fell 10%, demonstrating its hedging function. For Taiwanese investors, holding JPY is not just for leisure but also a tool to hedge against Taiwan stock market risks.

Arbitrage Opportunities and Interest Rate Differentials

Japan has maintained an ultra-low interest rate policy (currently 0.5%) for a long time, making JPY a traditional “funding currency.” Savvy investors borrow in low-interest JPY, convert to higher-yield USD (the USD-JPY interest rate gap approaches 4.0%), and realize profits when risks increase and they close positions. Additionally, the HKD to TWD exchange rate is relatively low, and compared to the cost of exchanging JPY, investing in JPY offers clearer value.

Four major channels in-depth analysis: balancing cost and convenience

Many think exchanging JPY only involves banks, but they may not realize that the spread can be equivalent to several cups of bubble tea. Let’s analyze each.

Option 1: Bank Counter Exchange—Most Traditional, Most Expensive

Bring TWD cash directly to a bank or airport counter to exchange for JPY cash on the spot. Simple to operate, but uses the “cash selling rate” (about 1-2% worse than the spot rate), making the overall cost higher.

Example: Taiwan Bank’s rate on December 10, 2025: cash selling rate 0.2060 TWD/JPY (1 TWD = 4.85 JPY). Some banks add fixed handling fees, further increasing costs.

Pros and Cons

• ✓ Safe and reliable, denominations available (1000, 5000, 10000 JPY), staff assistance on-site
• ✗ Worse exchange rate, limited by bank hours (weekday 9:00-15:30), possible additional fees

Suitable for: Travelers unfamiliar with online operations or in urgent need at the airport

Major bank cash selling rates and fees (2025/12/10)

Option 2: Online Currency Conversion to Deposit Account—Flexible for Investors

Use bank app or online banking to convert TWD into JPY and deposit into a foreign currency account, enjoying “spot sell rate” (about 1% better than cash selling rate). If cash withdrawal is needed later, go to counter or foreign currency ATM, paying the spread fee (starting around 100 TWD).

For example, after converting via E.SUN app and withdrawing at the counter, you pay the difference between spot and cash rates, minimum 100 TWD. Suitable for monitoring exchange rates and entering in batches when TWD/JPY drops below 4.80.

Pros and Cons

• ✓ Operate 24/7, supports averaging costs through multiple purchases, better exchange rates
• ✗ Need to open a foreign currency account in advance; withdrawal fees apply (5-100 TWD cross-bank)

Suitable for: Experienced forex traders, long-term JPY holders, planning to convert into JPY deposits (annual interest about 1.5-1.8%)

Option 3: Online Currency Exchange for Cash Pickup—Best Path Before Travel

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date on the bank’s website. After remittance, bring ID and transaction notice to the counter for pickup. Taiwan Bank’s “Easy Purchase” online exchange fee is waived (Taiwan Pay payment costs only 10 TWD), with about 0.5% exchange rate advantage.

Ideal for pre-trip planning. Taoyuan Airport has 14 Taiwan Bank outlets (2 open 24 hours), with appointment options for airport pickup, eliminating the need to carry cash.

Pros and Cons

• ✓ Favorable exchange rates, low or no handling fees, airport pickup option
• ✗ Requires prior appointment (1-3 days minimum), pickup during bank hours, no on-the-spot changes

Suitable for: Well-planned travelers with confirmed schedules, operating 3-7 days before departure

Option 4: Foreign Currency ATM Cash Withdrawal—24/7 Emergency Solution

Use chip-enabled bank card at foreign currency ATMs to withdraw JPY cash, supporting 24/7 operation and interbank use, with only 5 TWD cross-bank fee deducted from TWD account. Limited locations (~200 nationwide), usually supply major currencies like JPY.

For example, Fubon Bank’s foreign currency ATM: withdraw JPY from TWD account, daily limit 150,000 TWD, no exchange fee. Note that Japan ATM withdrawal services will be adjusted by end of 2025 to accept international cards (Mastercard/Cirrus).

Pros and Cons

• ✓ Real-time withdrawal, high flexibility, saves cross-bank fees
• ✗ Limited locations, uneven distribution, fixed denominations (1000/5000/10000 JPY), cash may run out during peak times

Suitable for: Urgent needs, no time for counter visit. Pre-check ATM cash availability, avoid peak holidays.

Cost comparison of four options

Based on 50,000 TWD exchange, estimated costs and scenarios:

Is now the right time to buy JPY?

In December 2025, TWD/JPY hit 4.85, meaning 1 TWD = 4.85 JPY. Compared to early this year at 4.46, appreciating 8.7%, it’s a good time for Taiwanese investors to exchange. The TWD continues to weaken, increasing the hedging value. In the second half of the year, forex demand increased by 25%, mainly from travel recovery and hedging needs.

Exchange rate outlook

JPY remains volatile. The US easing cycle supports JPY, while the Bank of Japan (BOJ) is raising interest rate expectations: Governor Ueda recently hawkishly signaled a rate hike to 0.75% at the December 19 meeting (30-year high), with yields reaching 17-year highs of 1.93%. USD/JPY has fallen from 160 early this year to around 154.58 now, likely fluctuating near 155 short-term, with a medium-long term forecast below 150.

Investment advice

As one of the three major safe-haven currencies, JPY is suitable for hedging Taiwan stock market volatility. Short-term risks include arbitrage unwinding and geopolitical risks (Taiwan Strait, Middle East). Consider staggered entry to avoid risks from full conversion at once. Don’t rely solely on holding JPY without yield; consider deposits, ETFs, or swing trading for better returns.

Ways to increase value after acquiring JPY

After exchanging JPY, don’t let your funds sit idle. Here are four options suitable for small-scale beginners:

JPY deposits—Conservative choice
Open foreign currency accounts with E.SUN, Taiwan Bank, etc., and deposit online. Minimum 10,000 JPY, annual interest 1.5-1.8%, suitable for conservative investors.

JPY insurance policies—Medium-term growth
Cathay Life, Fubon Life offer JPY savings insurance with guaranteed 2-3% interest, suitable for 3-5 year holding.

JPY ETFs—Growth-oriented allocation
Yuanta 00675U, 00703 tracking JPY index ETFs, can be bought as fractional shares via broker apps for dollar-cost averaging, balancing risk and return. Management fee about 0.4% annually.

Forex swing trading—Active opportunity
Trade USD/JPY, EUR/JPY directly on forex platforms to capture exchange rate swings. Advantages include two-way trading, 24-hour market, small starting amounts. Common tools include stop-loss, trailing stops, real-time signals, suitable for experienced traders.

JPY’s two-way volatility means: rate hikes are good for gains, but can reverse due to arbitrage unwinding or geopolitical risks (Taiwan, Middle East). Carefully assess risk tolerance and choose allocation methods based on holding period.

Quick FAQ

What’s the difference between cash rate and spot rate?

Cash rate (Cash Rate) applies to physical currency exchange, with the advantage of immediate delivery and portability, but the rate is 1-2% worse than the spot rate, increasing costs after fees.

Spot rate (Spot Rate) is the market rate for settlement within two business days (T+2), mainly used for electronic transfers and non-cash transactions. It offers better rates close to international market prices but involves waiting for settlement.

How much JPY for 10,000 TWD?

Using the formula: JPY amount = TWD amount × current rate

At Taiwan Bank’s rate on 2025/12/10: 0.2060 TWD/JPY, 10,000 TWD ≈ 48,500 JPY. Using the spot rate of 0.2049 (4.87 TWD/JPY), it’s about 48,700 JPY, a difference of 200 JPY (~40 TWD).

What documents are needed for counter exchange?

Taiwanese: ID card + passport
Foreigners: Passport + residence permit
Company: Business registration documents
Online reservation: Transaction notice

Note: Under 20 needs parent’s consent; large amounts over 100,000 TWD may require source of funds declaration.

Foreign currency ATM withdrawal limits?

From October 2025, banks strengthen anti-fraud measures; limits vary:

Advice: Use your own bank card to avoid cross-bank fees (5 TWD per transaction). Plan withdrawals during peak times to ensure cash availability.

Summary: JPY is now an essential asset allocation

JPY has long surpassed “travel pocket money,” now serving as a hedge and small investment asset. Whether preparing for next year’s Japan trip or distributing funds to hedge TWD depreciation, following “batch exchange + don’t leave funds idle” principles can minimize costs and maximize gains.

Beginners should start with the simplest “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then gradually move into deposits, ETFs, or swing trading as needed. This way, traveling becomes cheaper, and you add an extra layer of protection amid global market turbulence.

Currently, HKD to TWD is relatively low, USD remains strong, and JPY has become a new hedge favorite for savvy investors—seize the opportunity by understanding exchange rates.