Japanese Yen Exchange Complete Guide: 4 Tips to Avoid Losing Money When Converting Foreign Currency

By the end of 2025, the Taiwan dollar against the Japanese yen reached a relatively high level of 4.85, with a surge in outbound travel and yen investments. But here’s the question: do you know the cheapest way to exchange foreign currency? For the same 50,000 TWD, some spend an extra 2,000 NT dollars unnecessarily, while others can do it for less than 500 NT dollars. The key is choosing the right currency exchange channel.

Is it worth exchanging yen now? Let’s look at these two signals

Exchange Rate Signal: Appreciated 8.7% this year, think carefully before selling

From 4.46 at the start of the year to 4.85 now, the yen has appreciated over 8.7% against the TWD. It looks very cost-effective at first glance, but it also means you’ve missed a lower price point.

According to the latest market forecast, the Bank of Japan(BOJ) Governor Ueda Haruhiko has signaled a rate hike, with expectations to raise interest rates to 0.75% on December 19 (a 30-year high), and Japanese bond yields have surged to 1.93%. Against this backdrop, USD/JPY has fallen from 160 at the start of the year to 154.58 now, with a short-term test of 155 possible, but medium- to long-term predictions suggest it will be below 150.

In other words: If you’re traveling, exchanging now is right; if investing, there’s still room for downside, and buying in batches is wiser.

Demand Signal: Foreign currency exchange demand increased by 25% in the second half of the year

Statistics show that Taiwan’s demand for foreign currency exchange in the second half increased by 25%, mainly driven by tourism recovery and risk hedging. As one of the three major safe-haven currencies (USD, Swiss Franc, Yen), the yen becomes especially popular during global volatility—last year, during the Russia-Ukraine conflict, the yen appreciated 8% in a week, while the stock market fell 10%.

Four options for foreign currency exchange, with significant cost differences

Most people think exchanging yen just involves queuing at the bank, but they don’t realize that the difference in exchange rates and handling fees can wipe out a decent meal. Here, we compare the costs of different channels with real data.

Method 1: In-person cash exchange (most expensive, not recommended)

Bring cash TWD to a bank or airport counter to buy yen cash, using the “cash selling rate.” This rate is about 1-2% worse than the spot rate, plus possible handling fees, making it the most costly.

Real rate example (December 10, 2025):

Taiwan Bank cash selling rate: 0.2060 (1 TWD = 4.85 yen), Mega Bank: 0.2062, CTBC: 0.2065. Some banks also charge 100-200 NT dollars per transaction.

Exchanging 50,000 TWD this way results in a loss of 1,500–2,000 NT dollars, suitable only for urgent, small amounts at the airport.

Pros: Simple, full denominations, staff assistance
Cons: Worst rate, limited business hours(Weekdays 9:00-15:30), possible handling fees
Suitable for: People unfamiliar with online operations, small emergency needs

Method 2: Online exchange + in-person cash pickup (moderate cost)

Use bank app or online banking to convert TWD to yen and deposit into a foreign currency account, using “spot selling rate” (about 1% cheaper than cash selling). Then, withdraw cash at a counter or foreign currency ATM.

This process involves an extra step but saves the exchange rate difference to offset withdrawal fees. Suitable for those who want to monitor exchange rates and buy in batches—e.g., waiting for TWD to yen to drop below 4.80 before entering.

For example, E.SUN Bank charges about 100 NT dollars for withdrawal after online exchange, roughly reflecting the difference between spot and cash rates.

Pros: 24/7 operation, can buy in installments, favorable rates
Cons: Need to open a foreign currency account first, withdrawal fees(Interbank 5-100 NT dollars)
Suitable for: Experienced forex traders, long-term foreign currency holders

Method 3: Online currency exchange + airport pickup (most recommended)

No need to open a foreign currency account. Simply select currency, amount, pickup branch, and date on the bank’s website, complete the transfer, and then pick up with ID and transaction notice at the branch. Both Taiwan Bank and Mega Bank offer this service, with appointment options at the airport.

Highlight: Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay with Taiwan Pay, only 10 NT dollars), with about 0.5% favorable exchange rate. Taoyuan Airport has 14 Taiwan Bank counters, including 2 open 24 hours, allowing direct pickup before departure—super convenient.

Exchanging 50,000 TWD this way costs about 300–800 NT dollars less, with flexible appointment scheduling, making it the best choice for travelers.

Pros: Better rates, often no handling fee, direct airport pickup
Cons: Need to book 1-3 days in advance(At least 1-3 days), pickup during bank hours, branches cannot be changed
Suitable for: Planned travelers who want to pick up foreign currency at the airport

Method 4: Foreign currency ATM withdrawal (most flexible)

Use a chip-enabled bank card to withdraw yen cash at foreign currency ATMs, available 24 hours. Deducted directly from TWD account, cross-bank fee only about 5 NT dollars, no complicated procedures.

E.SUN Bank’s foreign currency ATMs allow withdrawal of yen from TWD accounts, with a daily limit of 150,000 NT dollars, no exchange fee. Note that Japan’s ATM withdrawal service will be adjusted at the end of 2025, requiring an international card(Mastercard/Cirrus).

Caution: Few ATM locations (about 200 nationwide), and cash may run out during peak times (e.g., airports). Don’t wait until just before departure to withdraw, to avoid missing out.

Pros: Instant withdrawal, high flexibility, low fees from TWD account
Cons: Limited locations and denominations(Fixed denominations: 1000/5000/10000 yen), cash shortages possible during busy hours
Suitable for: People with no time to visit banks, needing urgent cash

Summary table of 4 exchange methods

Beginner tip: If you have only 50,000–200,000 TWD, a mix of “online exchange + airport pickup” or “ATM withdrawal” offers the lowest cost.

Why exchange yen? Not just for travel

Daily life reasons

Travel expenses: Shopping in Tokyo, Osaka, or skiing in Hokkaido still often require cash (credit card usage is only about 60%).
Shopping and online purchasing: Buying Japanese cosmetics, fashion, anime goods often requires direct yen payments.
Studying abroad or working holiday: Long-term residents exchange in advance to avoid exchange rate fluctuations increasing costs.

Investment reasons

Strong safe-haven asset The yen is ranked among the top three global safe-haven currencies due to Japan’s stable economy and low debt. During market turmoil, funds flow into yen—during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, while stocks fell 10%. For Taiwanese investors, exchanging yen isn’t just for leisure but also for hedging Taiwan stock risks.

Arbitrage trading hotspot Japan maintains ultra-low interest rates(around 0.5%), making the yen a “funding currency.” Many investors borrow yen at low interest, convert to higher-yield USD for investment(about 4.0% interest rate differential), then unwind when risk rises, buying back yen. If timing is off, short-term fluctuations of 2-5% are possible, so gradual entry is safest.

After exchanging foreign currency, how to make your money grow?

Don’t let your yen sit idle without interest; consider some steady income options.

Yen fixed deposit: The safest choice. E.SUN/Bank of Taiwan offer foreign currency accounts, online deposits starting from 10,000 yen, with annual interest rates of 1.5–1.8%, suitable for capital preservation.

Yen insurance policies: Medium-term holding. Cathay/Fubon savings insurance with guaranteed interest rates of 2–3%, also providing protection.

Yen ETFs(such as 00675U, 00703): Growth-oriented options. Yuanta 00675U tracks the yen index, can be bought as fractional shares via brokerage apps, suitable for dollar-cost averaging beginners.

Yen forex trading: Advanced option. Directly trade USD/JPY or EUR/JPY currency pairs, 24-hour trading, long and short positions, ideal for capturing swings. Advantages include small capital requirements and comprehensive trading tools(stop-loss, take-profit, trailing stops).

Which to choose? For stability, pick deposits or insurance; for diversification, ETFs; for swing trading, forex.

Quick answers to common questions

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

Cash rate is the buy/sell rate banks offer for physical bills(paper money/coins), paid on the spot but usually 1-2% worse than the spot rate. Spot rate is the foreign exchange market rate settled T+2, used for electronic transfers and foreign currency accounts, more favorable.

Q. How much yen can I get with 10,000 TWD?

Using Taiwan Bank’s cash selling rate of 4.85, about 48,500 yen. With the spot rate(4.87), roughly 48,700 yen, a difference of 200 yen (~40 TWD).

Q. What should I bring for in-person exchange?

Taiwanese: ID card + passport; foreigners: passport + residence permit. Online booking users should also bring transaction notices. For large amounts over 100,000 TWD, declaration may be required. Under 20, bring a parent.

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

Different banks have different limits(From October 2025, enhanced anti-fraud measures). CITIC: 120,000 TWD/day, Taishin: 150,000 TWD, E.SUN divides into withdrawal and debit. It’s recommended to split withdrawals or use your own bank card to avoid cross-bank fees.

The golden rule for exchanging yen

The yen has evolved from a simple travel “pocket money” to an asset with hedging and investment value. Whether traveling or asset allocation, mastering “batch exchange + don’t leave the money idle after exchange” can minimize costs.

Beginners should start with “Taiwan Bank online exchange + airport pickup” or “ATM withdrawal,” then move into deposits, ETFs, or swing trading based on needs. This approach makes travel cheaper and adds a layer of protection during global market turbulence. Remember: actively picking up foreign currency is the smart way to protect your assets.