Japanese Yen Exchange Cost Analysis | TWD to JPY at 4.85, which of the 4 major channels is the most cost-effective?

This year (2025), the Taiwan dollar (TWD) has appreciated to 4.85 against the Japanese Yen (JPY), an increase of nearly 9% since the beginning of the year. Many people are preparing to travel abroad or allocate assets in Yen, but do you really know how to exchange money most cost-effectively? We have compiled a comprehensive currency exchange guide, including cost comparisons of four channels, operational procedures, and investment allocations after exchanging to Yen.

Why Exchange for Yen? A Complete Application from Daily Life to Investment

When it comes to foreign currency exchange, Yen is often the first choice for Taiwanese people. But the reason isn’t just because they love traveling to Japan.

Practical Daily Scenarios: Travel, Shopping Agents, Studying Abroad

• Most Japanese stores only accept cash (credit card penetration rate 60%), so cash is needed for shopping in Tokyo and skiing in Hokkaido
• Paying directly in Yen is often required for purchasing Japanese cosmetics, clothing, and anime merchandise
• Study abroad students exchange currency in advance to avoid sudden exchange rate fluctuations increasing their expenses

From a Financial Asset Perspective: Yen is one of the world’s three major safe-haven currencies

The Yen has long been listed alongside the US dollar and Swiss franc as a safe-haven currency. During market turbulence, funds flow into Yen—during the Russia-Ukraine conflict in 2022, Yen appreciated 8% in one week, while the stock market dropped 10%. For Taiwanese investors, exchanging for Yen can hedge against Taiwan stock market volatility.

Additionally, Japan’s ultra-low interest rate policy (0.5%) makes Yen a “funding currency.” Investors borrow Yen at low interest, convert to higher-yield USD investments (USD-JPY interest rate differential of 4%), and arbitrage when markets heat up, or close positions to realize profits when risks increase. This is also why USD/JPY is the most traded currency pair in the global forex market.

Four Main Channels for Exchanging Yen in Taiwan｜Cost, Speed, Suitable Scenarios at a Glance

Many think exchanging Yen only requires going to a bank, but just the exchange rate difference can cost an extra NT$1,000-2,000. Here is a complete comparison of four channels:

Option 1｜Bank Counter Cash Exchange (Most Traditional)

Bring NT$ directly to a bank or airport counter to exchange for Yen cash, using the “cash selling rate” (1-2% worse than the spot rate).

Cost Analysis (based on NT$50,000):

• Taiwan Bank cash selling rate: 0.2060 Yen/NT$
• Some banks charge an additional NT$100-200 handling fee
• Total loss: NT$1,500-2,000

Pros and Cons:

Suitable for: Those unfamiliar with online operations, needing small amounts for urgent airport use

Comparison of cash selling rates (2025/12/10):

Option 2｜Online Banking Currency Exchange + Counter or Foreign Currency ATM Withdrawal (Advanced)

Use the “spot selling rate” in the bank app (about 1% better than cash selling rate) to convert NT$ to Yen and deposit into a foreign currency account. If cash is needed, withdraw at counter or foreign currency ATM (incurs exchange spread and handling fees).

Cost Analysis:

• Online exchange has no handling fee, rate around 0.207-0.209 NT$/Yen
• Cash withdrawal fee: NT$100-200
• Total loss: NT$500-1,000

Pros and Cons:

Suitable for: Those experienced in forex, wanting to observe low exchange rate points for batch entry

Advanced Use: After exchanging Yen, can deposit into Yen fixed deposit (annual interest 1.5-1.8%) or invest in Yen ETFs (e.g., Yuanta 00675U)

Option 3｜Pre-arranged Online Currency Exchange + Airport Pickup (Most Recommended Before Travel)

No need for a foreign currency account, just fill in amount, pickup branch, and date on the bank’s website. Taiwan Bank’s “Easy Purchase” service has no handling fee (NT$10 with Taiwan Pay). Taoyuan Airport has 14 pickup points (2 open 24 hours).

Cost Analysis:

• Taiwan Bank’s exchange rate is about 0.5% better, spot selling rate around 0.209-0.211 NT$/Yen
• Airport pickup is limited to bank business hours
• Total loss: NT$300-800

Pros and Cons:

Suitable for: Planning travelers who want to pick up Yen directly at the airport

Operation Steps: Log in to bank website → select online currency exchange → fill in amount and pickup branch → choose pickup date → pick up at airport upon arrival

Option 4｜Foreign Currency ATM Withdrawal (Most Flexible)

Use a chip-enabled bank card to withdraw Yen cash at foreign currency ATMs, open 24/7, with only NT$5 interbank fee deducted from the NT$ account.

Cost Analysis:

• Fubon Bank has no currency exchange fee, daily limit NT$150,000
• Interbank fee NT$5 (much lower than counter handling fee)
• Total loss: NT$800-1,200

Pros and Cons:

Suitable for: Busy professionals who don’t have time to visit banks, need urgent cash

Tip: Foreign currency ATMs have fixed denominations of 1,000/5,000/10,000 Yen. During peak times (especially at airports), cash may be sold out. It’s not recommended to wait until the last minute to withdraw.

Quick Cost Comparison Table of 4 Channels (Based on NT$50,000 Exchange)

Recommended for Beginners: For a budget of NT$50,000-200,000, mainly use “online currency exchange + airport pickup,” supplemented by “foreign currency ATM.”

Why is the HKD to TWD Exchange Logic Different from Yen?

Many people deal with multiple currencies. The strategy for HKD to TWD differs significantly from TWD to Yen. HKD is pegged to USD (linked exchange rate), with small fluctuations, suitable for short-term cash exchange; Yen is more volatile and has strong hedging properties, suitable for phased asset allocation. In other words, HKD is good for “quick in and out,” while Yen is better for “buying in batches at low points.”

Is Now a Good Time to Exchange Yen? Exchange Rate Trends and Investment Advice

Current Situation Analysis:

As of December 10, 2025, TWD/JPY is 4.85, up about 8.7% from 4.46 at the start of the year. Exchange demand in Taiwan increased by 25% in the second half, mainly driven by travel recovery and hedging needs.

The Yen exchange rate remains volatile. The US entering a rate-cut cycle supports Yen, but the Bank of Japan’s rate hike expectations (Governor Ueda recently hawkishly indicated a 0.25 basis point increase to 0.75% on December 19) pushed Japanese bond yields to 1.93% (a 17-year high). USD/JPY fell from a high of 160 at the start of the year to 154.58, with short-term rebound potential to 155, and a medium-long-term forecast below 150.

Investment Advice (Dollar-cost averaging principle):

For long-term investors, Yen as a safe-haven asset is stable, but short-term arbitrage closing positions could cause 2-5% volatility. It’s recommended not to exchange all at once but to do 3-4 entries, each time allocating 1/3 to 1/4 of the total, to average costs and reduce risk.

Investment Allocations After Exchanging Yen (Don’t Let Your Money Lie Idle)

Yen is no longer just for travel pocket money but also a hedging and income-generating asset. After exchanging, consider these four allocations:

1. Yen Fixed Deposit (Conservative)

• Deposit into E.SUN or Taiwan Bank foreign currency accounts online
• Minimum NT$10,000, annual interest 1.5-1.8%
• Lowest risk, suitable for conservative investors

2. Yen Savings Insurance (Mid-term)

• Cathay, Fubon life insurance savings products
• Guaranteed interest rate 2-3%, 5-7 years term
• Combines protection and returns

3. Yen ETF (Growth)

• Yuanta 00675U (tracks Yen index), 00703, etc.
• Management fee 0.4%, can buy fractional shares for regular investment
• Diversifies risk, suitable for long-term allocation

4. Forex Swing Trading (Advanced)

• Trade USD/JPY, EUR/JPY pairs
• Long and short, 24-hour trading, small capital needed
• Capture exchange rate fluctuations, high risk and high reward

FAQs

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

Cash exchange rate is the rate banks offer for physical cash (banknotes/coins), provided instantly and portable, but usually 1-2% worse than the spot rate. The spot rate is the foreign exchange market rate settled T+2, used for electronic transfers and cashless transactions, closer to international market prices, but requires waiting for settlement.

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

Using Taiwan Bank’s December 10, 2025, cash selling rate of 4.85, NT$10,000 can exchange for about 48,500 Yen. Using the spot rate (~4.87), it’s about 48,700 Yen.

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

Taiwanese: ID card + passport; foreigners: passport + residence permit; companies: business registration. If booked online, bring transaction notice. Under 20 need a parent present; large amounts (>NT$100,000) require source declaration.

Q. What’s the limit for foreign currency ATM withdrawal?

As of October 2025, limits are adjusted: China Trust equivalent to NT$120,000/day; Taishin Bank NT$150,000/day; E.SUN Bank NT$50,000 per transaction, NT$150,000/day. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

Summary｜Master the Two Principles of “Batch Currency Exchange + Asset Allocation After Exchange”

Yen is no longer just for travel “pocket money” but also a hedging and income asset. Whether traveling or investing, by following the principles of “phased layout + immediate allocation after exchange,” you can minimize costs and maximize returns.

For beginners, start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transfer into fixed deposits, ETFs, or swing trading based on your needs. This way, you can enjoy more cost-effective travel and add an extra layer of asset protection during global market turbulence.