A Beginner's Guide to Yen Investment: Revealing the Costs of 4 Major Currency Exchange Channels, How to Spend the Least Money to Exchange the Most Yen

Is now a good time to exchange for Japanese Yen?

By December 2025, the TWD/JPY exchange rate has surged to 4.85. Behind this seemingly favorable rate, there are hidden risks of arbitrage trading. The Bank of Japan Governor Ueda Kazuo recently issued hawkish comments, leading the market to expect a rate hike at the December 19 meeting to a 30-year high of 0.75%, directly pushing Japanese government bond yields to a 17-year high of 1.93%.

From 4.46 at the start of the year to 4.85 now, the yen has appreciated approximately 8.7%. For Taiwanese investors, whether traveling abroad or allocating hedging assets, now is indeed a good time. But the key is—the method you choose to exchange determines how much money you can save.

We observe that Taiwan’s foreign exchange demand increased by 25% in the second half of the year, mainly driven by travel recovery and hedging needs. Additionally, details like airport exchange times, ATM withdrawal limits, and bank exchange rate differences all influence your final costs.

Why is the Japanese Yen worth investing in? It’s more than just a travel currency

Strong Hedging Property
The yen is one of the world’s three major safe-haven currencies alongside the USD and CHF. During the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, successfully buffering a 10% decline in the stock market. For Taiwanese investors, exchanging for yen is like buying a “lifeboat” to protect against drops in the Taiwan stock market.

Active Arbitrage Trading
Japan’s long-term ultra-low interest rate (only 0.5%) attracts investors to borrow low-interest yen and invest in high-yield USD (the USD/JPY interest rate gap reaches 4.0%). However, risks also come from here—when market risks rise, these arbitrage positions are closed in large scale, potentially causing the yen to fluctuate by 2-5%.

Long-term Appreciation Expectation
The Bank of Japan is on the verge of raising interest rates. In the medium to long term, USD/JPY is forecasted to break below 150, indicating further yen appreciation potential.

Complete comparison of Taiwan’s 4 major currency exchange channels

Option 1: In-person currency exchange—most traditional, highest cost

Bring TWD directly to a bank or airport counter to exchange cash. Simple but uses the “cash selling rate,” which is 1-2% worse than the spot rate. Just this difference can cost an extra NT$1,500-2,000 on NT$50,000.

Latest bank exchange rates (as of December 10, 2025):

• Taiwan Bank: 0.2060 (no fee)
• E.SUN Bank: 0.2067 (+NT$100 fee per transaction)
• Taipei Fubon Bank: 0.2069 (+NT$100 fee per transaction)

Counter service hours are limited (weekday 9:00-15:30). Suddenly remembering to exchange more yen before leaving? You might just have to rely on luck to catch the bank before closing.

Suitable for: Those unfamiliar with online operations or needing small cash amounts urgently.

Option 2: Online exchange, then withdraw at counter or ATM—advanced players’ choice

Use bank app or online banking to enjoy “spot selling rate” (about 1% discount), then go to a counter or use foreign currency ATMs to withdraw cash. You’ll pay a small exchange fee (around NT$100+), but overall costs are NT$500-1,000 cheaper than in-person exchange.

The biggest advantage is batch operation—you can buy in parts when you observe the TWD weakening, averaging lower costs. Coupled with E.SUN Bank’s yen fixed deposit (annual interest 1.5-1.8%), you can earn interest after exchanging.

Suitable for: Those experienced in forex, planning to hold yen long-term, or investing in yen fixed deposits or ETFs.

Option 3: Online currency settlement, airport pickup—smartest pre-travel plan

No need to open a foreign currency account in advance. Just fill out a form on the bank’s website and book a pickup at the airport branch. Taiwan Bank’s “Easy Purchase” online settlement even waives fees (pay NT$10 via TaiwanPay), with a 0.5% exchange rate advantage.

Ideal for travelers who plan ahead. Taoyuan Airport has 14 Taiwan Bank branches, including 2 open 24 hours. Exchange times at the airport are flexible. Cost is NT$300-800, making it the most cost-effective among the four options.

The only downside is the need for advance booking (1-3 days), and branch pickup cannot be changed on short notice. But for well-planned travelers, this is not an issue.

Suitable for: Organized travelers planning to go abroad, especially those exchanging large amounts.

Option 4: Foreign currency ATM withdrawal—24/7 convenience store

Use a chip-enabled financial card to withdraw yen cash at foreign currency ATMs, available 24/7. Deduct NT$5 cross-bank fee from your TWD account. Daily withdrawal limits vary by bank (SinoPac NT$150,000; CTBC NT$120,000; E.SUN NT$50,000).

Disadvantages include limited ATM locations (about 200 nationwide) and fixed denominations (1,000/5,000/10,000 yen). During peak times (like at airports), cash may run out, so don’t wait until the last minute.

Cost around NT$800-1,200. Suitable for those with no time to visit banks or needing immediate cash.

Suitable for: Busy professionals or travelers with urgent cash needs.

Cost comparison: How much more do you pay when exchanging NT$50,000 for yen?

Foreign currency ATM withdrawal limits overview

Since the new regulations in October 2025, most banks have strengthened anti-fraud measures, adjusting daily limits:

• CTBC Bank: NT$120,000 for own card, varies for others
• Taishin Bank: NT$150,000 for own card, NT$20,000 per transaction for others
• E.SUN Bank: NT$50,000 (50 banknotes), NT$150,000 daily including signed bills

It’s recommended to use your own bank’s card to withdraw, saving NT$5 cross-bank fee, and plan withdrawals in advance.

After exchanging for yen—how to make your money grow

Don’t leave the yen idle with no interest. You can invest in:

Yen Fixed Deposit (annual interest 1.5-1.8%)
The safest choice. Open a foreign currency account at E.SUN or Taiwan Bank with a minimum of NT$10,000 yen. Returns are modest but risks are minimal.

Yen ETFs (00675U, 00703)
YuanDa 00675U tracks the yen index, with only 0.4% annual management fee. You can buy fractional shares via brokerage apps for dollar-cost averaging. Suitable for those wanting to participate in yen appreciation without frequent trading.

Yen Insurance Policies (guaranteed interest 2-3%)
Cathay or Fubon savings insurance, holding medium-term (6-10 years), with guaranteed interest of 2-3%. Between fixed deposits and investments.

USD/JPY Forex Trading
Trade USD/JPY or EUR/JPY directly on trading platforms (like Mitrade). Benefits include zero commission, low spreads, 24-hour trading, and both long and short positions. Suitable for swing trading but carries higher risk and requires experience.

Quick FAQs

Q. How much yen can I get with NT$10,000?
Using Taiwan Bank’s December 10, 2025 rate (cash sell 4.85), NT$10,000 ≈ 48,500 yen; with spot sell at 4.87, ≈ 48,700 yen. Difference about NT$40.

Q. What documents are needed for in-person foreign currency exchange?
Taiwanese: ID + passport; foreigners: passport + residence permit; companies: business registration; under 20: parent’s consent + ID; over NT$100,000: source of funds declaration.

Q. What’s the difference between cash exchange rate and spot rate?
Cash rate applies to physical cash transactions, convenient but 1-2% worse; spot rate is used for electronic transfers and foreign currency accounts, with better rates but T+2 settlement.

Final tips: How to minimize your exchange costs

Exchange in installments, not all at once
Yen can fluctuate 2-5% in the short term. Staggered exchange reduces risk.

Choose channels based on purpose
Travel → online settlement + airport pickup; long-term investment → online exchange + fixed deposit; urgent need → foreign currency ATM.

Don’t let yen sit idle
After exchange, transfer to fixed deposits or ETFs to earn 1.5-1.8% annual return, beating TWD depreciation.

Monitor BOJ’s moves
Rate hike expectations support yen, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait/Middle East) may weaken it. Keep an eye on central bank meetings.

In summary, the yen is no longer just a travel “pocket money” currency but a hedging asset allocation tool. Using the right exchange channels and subsequent investments, you can enjoy better travel costs and add a layer of protection during market turbulence.