Japanese Yen Exchange Cost Revealed | 4 Major Channels Tested Exchange Rates, Save up to 400 Yen on 10,000 Yen

The current TWD to JPY exchange rate has reached 4.85, and many are preparing to exchange yen for travel or hedging purposes. But did you know? Exchanging 50,000 TWD through the right channels can save you 1,500 NT$, while choosing the wrong one could cost you an extra 2,000 NT$. Today, we’ll test and compare the exchange rates offered by various banks to clarify the cost differences among four currency exchange methods.

Why is it worth exchanging for JPY? Travel and investment combined

For Taiwanese people, the appeal of yen isn’t just for travel convenience; it also has practical value in daily life and finance.

Everyday consumption scenarios include shopping in Tokyo and Osaka, skiing in Hokkaido, or vacationing in Okinawa. Cash remains the main payment method (credit card penetration is only 60%). Purchasing agents and Japanese online shoppers often need to pay directly in yen. International students and working holidaymakers also exchange currency in advance to lock in costs.

Financial investment aspect, the yen is one of the world’s three major safe-haven currencies (alongside USD and Swiss Franc). Japan’s economy is stable, with low debt levels. During market turbulence, funds flow into yen as a safe haven—during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, effectively buffering the 10% drop in the stock market. For Taiwan stock investors, exchanging for yen adds an extra layer of protection.

Additionally, Japan’s ultra-low interest rate policy (0.5%) makes the yen a “funding currency.” Many institutions borrow low-interest yen to convert into higher-yield USD investments, with a USD/JPY interest rate differential of 4.0%, creating arbitrage opportunities. When risks rise, traders close positions by buying back yen, pushing up the exchange rate.

Testing four major exchange methods｜Cost comparison overview

Exchanging yen isn’t limited to just going to a bank. The combination of exchange rates and fees can produce several times the cost difference. Below are the rates tested on December 10, 2025:

Method 1: In-person cash exchange｜Most traditional but highest cost

Bring cash TWD to a bank or airport counter to buy yen cash. Using the “cash selling rate” (1-2% worse than the spot rate), plus some banks’ handling fees, results in higher costs.

Calculating with 50,000 TWD:

• Taiwan Bank cash selling rate: 0.2060 (1 TWD = 4.85 JPY)
• Yen received: 50,000 × 4.85 = 242,500 JPY
• Loss of about 1,500-2,000 NT$ (covering exchange margin and fees)

Advantages: Denominations available (1,000, 5,000, 10,000 JPY), safe and reliable, with staff assistance.

Disadvantages: Exchange rate margin, limited by bank hours (weekday 9:00-15:30), possible additional handling fees.

Suitable for: Small, urgent needs, airport emergencies, unfamiliar with online procedures.

Bank cash rates (2025/12/10):

Method 2: Online currency exchange transfer｜Suitable for long-term holders

Use bank app or online banking to buy foreign currency and deposit into a foreign currency account, enjoying the “spot sell rate” (about 1% better than cash rate). If you need to withdraw cash later, do so in person or via foreign currency ATM, paying additional exchange margin fees.

Calculating with 50,000 TWD:

• Spot sell rate: approximately 0.2063 (1 TWD = 4.87 JPY)
• Yen received: 50,000 × 4.87 = 243,500 JPY
• Additional handling fee for cash withdrawal: 100-200 NT$
• Loss of about 500-1,000 NT$

Advantages: 24/7 operation, allows averaging costs through multiple entries, better exchange rates.

Disadvantages: Need to open a foreign currency account first, extra fees for cash withdrawal, cross-bank withdrawal fee of 5-100 NT$.

Suitable for: Investors experienced with forex, those with foreign currency accounts. Can further transfer yen into fixed deposits (annual interest 1.5-1.8%) or yen ETFs (e.g., Yuanta 00675U, management fee 0.4%).

Method 3: Online currency conversion + designated pickup location｜Best pre-departure plan

No need for a foreign currency account. Fill in currency, amount, branch, and date on the bank’s website. After remittance, bring ID and transaction notice to pick up cash in person. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this service, with appointment options at airports.

Calculating with 50,000 TWD:

• Online currency conversion fee waived (Taiwan Pay payment only 10 NT$), with about 0.5% exchange rate advantage
• Spot sell rate: approximately 0.2065
• Yen received: 50,000 × 4.88 = 244,000 JPY
• Loss of about 300-800 NT$

Taiwan Bank’s Taoyuan Airport has 14 pickup points, including 2 24-hour locations, making it a convenient pre-departure option.

Advantages: Better exchange rate, often no handling fee, cash can be picked up at the airport.

Disadvantages: Need to book 1-3 days in advance, limited by bank hours, branches cannot be changed.

Suitable for: Planned travelers who want to withdraw directly at the airport.

Method 4: Foreign currency ATM withdrawal｜Most flexible anytime, anywhere

Use a chip-enabled bank card at a foreign currency ATM to withdraw yen cash 24 hours. Deducts directly from TWD account, cross-bank fee only 5 NT$, no forex handling fee.

Calculating with 50,000 TWD:

• Supports direct withdrawal from TWD account (must transfer to buy foreign currency first)
• SinoPac Bank’s foreign currency ATM limit: equivalent to NT$150,000 per day
• Loss of about 800-1,200 NT$ (mainly due to exchange margin at purchase)

Advantages: Instant withdrawal, high flexibility, low cross-bank fee (5 NT$ per transaction), no bank hours restrictions.

Disadvantages: Limited locations (~200), fixed denominations (1,000, 5,000, 10,000 JPY), cash may run out during peak times.

Suitable for: Urgent needs, users without time for in-person exchange. Avoid last-minute withdrawals to prevent cash shortages.

Cost comparison table of the four methods

Based on December 2025 data, exchanging 50,000 TWD:

Best for beginners: Choose “online currency conversion + airport pickup” or pure “foreign currency ATM” for lowest cost and easiest operation.

How much is 10,000 yen in TWD? Example of exchange rate calculation

Based on the current rate (1 TWD = 4.85 JPY), to reverse-calculate the TWD value of 10,000 yen:

Formula: TWD = JPY ÷ exchange rate

10,000 JPY ÷ 4.85 ≈ 2,062 NT$

Using the spot rate (about 4.87), it’s approximately 2,050 NT$. The difference is about 12 NT$, which seems small, but when exchanging 50,000 TWD, it can amount to 200-400 NT$ difference.

Is it worthwhile to exchange yen now? Trend analysis

Annual performance: At the start of 2025, TWD/JPY was 4.46; now it’s 4.85, appreciating 8.7% year-to-date. For those exchanging, gains are significant. In the second half, Taiwan’s demand for forex surged 25%, mainly driven by travel recovery and hedging needs.

Short-term volatility risk: The yen is currently volatile. US rate cuts support the yen, but hawkish statements from the Bank of Japan have increased expectations of a 0.25 bps hike to 0.75% on December 19 (a 30-year high). Japanese bond yields hit 17-year high at 1.93%. USD/JPY has fallen from 160 to 154.58 since the start of the year, with potential short-term fluctuations around 155, but medium-long term forecasts below 150.

Investment advice: While the yen is a safe-haven currency, suitable for hedging Taiwan stock volatility, short-term arbitrage closing could cause 2-5% swings. Phased exchange is key, avoid converting all at once. Set target ranges (e.g., 4.80-4.90) and enter in three batches to average costs.

Post-exchange financial arrangements｜Don’t let your money sit idle

After exchanging yen, don’t just leave it idle. Use the following four methods to make your funds work:

1. Yen fixed deposit (conservative) Open a foreign currency account online and deposit from 10,000 yen, with annual interest of 1.5-1.8%. E.SUN Bank and Taiwan Bank offer this. A 10,000 yen deposit for one year yields about 150-180 yen interest.

2. Yen insurance policy (mid-term holding) Cathay and Fubon Life offer yen savings insurance with guaranteed interest rates of 2-3%, suitable for 3-5 year plans.

3. Yen ETF (growth-oriented) Yuanta 00675U tracks yen index, with 0.4% annual management fee, available for fractional investing via broker apps. Alternatives like 00703 are also options for long-term yen appreciation.

4. Yen forex trading (swing trading) Trade USD/JPY or EUR/JPY on platforms like Mitrade, with zero commission, low spreads, and 24-hour trading. Features include stop-loss, take-profit, trailing stops, suitable for experienced traders.

While yen is a safe-haven, it carries two-way volatility risk. Global arbitrage closing or geopolitical conflicts (Taiwan Strait, Middle East) could depress the exchange rate. For long-term investment, yen ETFs diversify risk; for short-term trading, forex is a classic way to capture rate swings.

Quick FAQs

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

Cash rate (Cash Rate) applies to physical cash, characterized by immediate delivery and portability, but due to bank risks and costs, it’s usually 1-2% worse than the spot rate. Spot rate (Spot Rate) is the market’s two-day delivery rate (T+2), used for electronic transfers, import/export, or foreign currency accounts, and is closer to international market prices with better rates.

Q: What documents are needed for in-person currency exchange?

Taiwanese need ID card + passport; foreigners need passport + residence permit. For corporate exchanges, business registration proof is required. For online currency conversion, bring transaction notice. Minors under 20 need parental consent and ID. Large exchanges over 100,000 NT$ may require source of funds declaration.

Q: Are there limits on foreign currency ATM withdrawals?

From 2025, limits have been adjusted. For example, CTBC Bank’s foreign currency card: single transaction limit equivalent to NT$120,000, daily NT$120,000; other banks’ cards vary. Taishin Bank: single and daily limit NT$150,000. E.SUN Bank: single withdrawal up to NT$50,000 (50 banknotes), daily NT$150,000. It’s recommended to diversify withdrawals or use your own bank card to avoid cross-bank fees.

Summary: Timing, phased exchange, and prudent planning

Yen has evolved from just a “travel pocket money” to an asset with hedging and investment value. Since the start of 2025, it has appreciated 8.7%. Coupled with the NT$ depreciation pressure, now is a relatively favorable time to exchange.

The key is choosing the right exchange channels and adopting a phased approach. Beginners are advised to start with “Taiwan Bank online exchange + airport pickup,” which offers the lowest cost (300-800 NT$) and simplest operation. After exchanging, consider moving funds into fixed deposits (interest 1.5-1.8%), yen ETFs, or forex swing trading to keep assets growing.

Whether for next year’s Japan trip or global hedging during turbulence, following the principles of “phased entry + not leaving money idle” can maximize returns and minimize costs.