How to choose currency exchange for Japanese Yen? Revealing the costs of 4 major channels—understand once which is the most cost-effective

Is it worth exchanging for Japanese Yen? Check the data before deciding

In December 2025, the TWD to JPY exchange rate reached 4.85. What does this number mean?

Starting from 4.46 at the beginning of the year, the Japanese Yen has appreciated about 8.7% this year. Compared to the fluctuations in the HKD to TWD exchange rate during the same period, the Yen’s stability is more prominent, which is why more and more people are turning to Yen allocations.

The key is, Yen is not just pocket money for travel—it also has hedging properties. The Bank of Japan (BOJ) has recently adopted a hawkish stance, with expectations to raise interest rates to 0.75% at the December 19 meeting (a 30-year high). This makes the Yen one of the world’s three major safe-haven currencies, alongside the US dollar and Swiss franc. During market turbulence (like the Russia-Ukraine conflict in 2022), capital often flows into Yen as a safe haven.

Is it cost-effective to exchange for Yen now? The answer is: yes, but in installments. The exchange rate is still fluctuating, so a full exchange at once is not recommended.

Four channels to exchange TWD for Yen in Taiwan—full analysis of costs and efficiency

Rather than fussing over “which bank is cheapest,” it’s better to understand the fundamental differences among the four exchange methods.

Method 1: Bank counter cash exchange—most traditional but most expensive

Bring cash TWD to a bank or airport counter to exchange for Yen cash. It sounds safe and convenient, but it’s actually the most costly.

Why is it expensive? Banks use the “cash selling rate,” which is 1-2% worse than the spot rate. For example, Taiwan Bank’s cash selling rate on December 10, 2025, was about 0.2060 (1 Yen = 0.2060 TWD), corresponding to an exchange rate of about 4.85. Some banks also charge an additional handling fee of 100-200 TWD.

Cost for 50,000 TWD: Using the cash rate, you lose about 1,500-2,000 TWD. Just this difference is enough to buy several cups of bubble tea.

Who should use this? Those unfamiliar with online transactions, urgent needs (like no cash at the airport), or requiring specific denominations.

Method 2: Online currency exchange to a foreign currency account—withdraw when needed

No need to visit the bank counter; use an app or online banking to convert TWD into Yen and deposit into your account. This uses the “spot selling rate,” which is about 1% better than the cash rate.

But don’t get too excited: If you want to withdraw cash, you’ll need to pay an additional fee (around 100-200 TWD), due to the difference between the “spot rate” and the “cash rate.”

Cost for 50,000 TWD: Loss of 500-1,000 TWD, better than counter exchange but not the best.

Suitable for: Those experienced with foreign currency investments or wanting to buy in installments (when TWD/JPY drops below 4.80). After exchange, you can also transfer into Yen fixed deposits (current annual interest rate about 1.5-1.8%).

Method 3: Online currency conversion, pick up at airport or branch—highest cost-performance ratio

Pre-order on the bank’s official website: select currency, amount, pickup branch, and date. After completing, bring ID and transaction notification to pick up in person. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service.

Advantages: Enjoy favorable exchange rates (about 0.5% discount), most handling fees waived (Taiwan Bank’s payment via TaiwanPay costs only 10 TWD). Taoyuan Airport has 14 Taiwan Bank outlets, including 2 open 24 hours, perfect for travelers.

Cost for 50,000 TWD: Loss of 300-800 TWD, currently the most cost-effective plan.

Disadvantages: Need to book 1-3 days in advance; limited to bank operating hours; branches cannot accommodate last-minute changes.

Suitable for: Planned travelers or those leaving in two weeks.

Method 4: Foreign currency ATM withdrawal—most flexible but limited

Use a chip-enabled bank card at foreign currency ATMs to withdraw Yen cash 24/7. Cross-bank withdrawal fee is only 5 TWD.

Sounds perfect? Yes, but reality is less ideal: there are only about 200 foreign currency ATMs nationwide, many places don’t have any. Denominations are fixed (1,000, 5,000, 10,000 Yen), and during busy times, cash may run out (especially at airports).

Cost for 50,000 TWD: Loss of 800-1,200 TWD, between counter and online methods.

Who should use this? Those who suddenly remember to exchange and have no time to visit banks. But don’t rely solely on this; it’s easy to miss out.

Cost comparison table of the four methods

After exchanging for Yen? Don’t let your money sit idle

Getting Yen is just the beginning. How to hold it to grow its value?

Yen fixed deposit—a conservative option, annual interest rate 1.5-1.8%, starting from 10,000 Yen, the simplest choice.

Yen insurance policy—savings insurance with guaranteed interest rates of 2-3%, suitable for medium-term holding.

Yen ETFs—for example, Yuanta 00675U tracking Yen index, can be bought in fractional shares, suitable for dollar-cost averaging. Management fee 0.4% annually, diversifies risk.

Forex trading—directly trade USD/JPY or EUR/JPY, long and short positions, 24-hour trading, capturing volatility. But high risk, not recommended for beginners.

Yen vs HKD: Why are more people choosing Yen?

By the way, given the relatively stable HKD to TWD exchange rate, why has Yen become the new favorite?

Hedging properties: Yen is an officially recognized safe-haven currency; HKD is more pegged to USD. When global risks rise, Yen has more upside potential.

Interest rate policies: BOJ’s rate hikes make Yen deposits more attractive. HKD mainly follows USD, with limited policy space.

Investment ecosystem: Yen has a complete range of ETFs, insurance, and fixed deposit products; HKD options are relatively limited.

In short, Yen offers higher portfolio investment value.

Best currency exchange strategy for beginners

If your budget is limited (5-20 million TWD), try this combination:

1. Pre-book about 80% via “online currency conversion”—best rates, lowest fees, pick up at the airport.
2. Use the remaining 20% with “foreign currency ATM”—for last-minute top-ups without visiting banks.

This way, you lock in favorable rates and retain flexibility, minimizing costs.

Quick FAQ

Q: How much is the difference between cash rate and spot rate?
A: About 1-2%. Cash rate is used for physical cash transactions (travel exchange), spot rate for electronic transfers (bank account transfers). Spot is more favorable.

Q: How much Yen can I get with 10,000 TWD?
A: Using the cash rate (~4.85), about 48,500 Yen. Using the spot rate (~4.87), about 48,700 Yen. Difference of 200 Yen (~40 TWD).

Q: What do I need to bring for counter exchange?
A: ID + passport. Under 20 needs parental accompaniment; large amounts (over 100,000 TWD) may require source of funds declaration. For online booking, also bring transaction notification.

Q: Is there a limit for foreign currency ATM withdrawals?
A: Yes. After the 2025 new rules, most banks limit daily withdrawal to about 100,000-150,000 TWD equivalent. Consider splitting withdrawals or using your bank’s card to avoid cross-bank fees. During peak times, cash may run out, so plan ahead.

Final words

Yen has evolved from just “travel pocket money” to a “small hedging asset.” Whether you plan to visit Kyoto next year or want to hedge against TWD depreciation, the key is: divide your exchange into installments.

Average your costs, and then invest gradually to increase returns. Choosing the right channels and methods can not only save on exchange fees but also add a layer of protection amid global market fluctuations.

Planning a trip to Japan this New Year? Start now—try “online currency conversion + airport pickup,” which is the most straightforward and cost-effective method.