## Why Should You Exchange Yen Now When Studying Abroad?

If you are planning to study abroad or traveling to Japan soon, now is a good time to exchange yen. As of December 10, 2025, the TWD to JPY exchange rate has risen to 4.85, an 8.7% increase from 4.46 at the beginning of the year. In other words, your TWD has appreciated against the yen, which means that the actual budget for studying abroad is not shrinking as much as it seems.

Not only tourists exchange yen, but students, shopping agents, and investors are also eyeing the yen. As one of the world's three major safe-haven currencies (alongside USD and Swiss Franc), the yen tends to resist depreciation—during market turbulence, funds often flow into the yen. During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, successfully buffering stock market declines. For Taiwanese investors, exchanging yen is not just for travel but also for hedging Taiwan stock market risks.

## 4 Ways to Exchange Yen, Which Is the Most Cost-Effective?

Many Taiwanese think that exchanging yen at the bank counter is the most convenient, but that’s not necessarily true. The exchange rate difference alone can cost you several cups of bubble tea. Here, we list the four latest channels and their true costs.

**Online Currency Exchange + Airport Pickup: The Best Choice for Studying Abroad**

This is the most cost-saving method. No need for a foreign currency account—just fill in the currency, amount, pickup branch, and date on the bank’s official website. After transferring, bring your ID and transaction notification to the counter for pickup. Taiwan Bank’s “Easy Purchase” online exchange has no handling fee (pay only NT$10 with Taiwan Pay), and the exchange rate is about 0.5% cheaper.

The best part is that Taoyuan Airport has 14 Taiwan Bank branches, including 2 open 24 hours. You can make an appointment the day before departure and pick up directly at the airport on the day—making currency exchange effortless. Suitable for those with a planned schedule who don’t want to risk last-minute mistakes, especially students who need to prepare in advance.

- **Advantages**: Better exchange rates, often no handling fee, designated airport pickup, easy reservation
- **Disadvantages**: Need to book 1-3 days in advance, pickup time limited by bank hours, branch changes not possible on short notice

**Foreign Currency ATMs: The Emergency Savior for Urgent Needs**

Use a chip-enabled debit card to withdraw cash in yen at foreign currency ATMs in banks. 24-hour operation, cross-bank fee NT$5. E.SUN Bank’s foreign currency ATMs allow withdrawals from TWD accounts with a daily limit of NT$150,000 and no currency exchange fee.

Disadvantages include limited locations (about 200 nationwide) and potential shortages during peak times (especially near airports). It’s recommended not to wait until the last minute to withdraw. Suitable for sudden cash needs or when you don’t have time to visit a bank.

- **Advantages**: Instant withdrawal, high flexibility, low cross-bank fee
- **Disadvantages**: Limited locations and denominations, cash shortages during peak hours

**Online Currency Exchange + Counter Pickup: For Long-term Holders**

Use bank apps or online banking to convert TWD into yen and deposit into a foreign currency account, using the “interbank rate” (about 1% cheaper than cash selling rate). When cash is needed, pay withdrawal fees, allowing for staggered entry and average costs.

Ideal for those observing exchange rate trends and buying in small amounts at low points (e.g., TWD/JPY below 4.80). After exchanging, you can also open yen fixed deposits with current annual interest rates around 1.5-1.8%, providing steady growth.

- **Advantages**: 24/7 operation, staggered purchase for average cost, more favorable rates
- **Disadvantages**: Need to open a foreign currency account first, withdrawal fees apply

**Bank Counter Cash Exchange: Backup Option**

The traditional method—bring cash TWD to the bank or airport counter to exchange for yen. Simple operation, full denominations, on-site assistance, but the worst exchange rate (using “cash selling rate,” 1-2% worse than interbank rate) and possible handling fees.

For example, Taiwan Bank’s December 10 rate: cash selling rate is about 0.2060 TWD per yen. Fees vary by bank—some free, others NT$100-200 per transaction. Use this only if other methods are unavailable.

- **Advantages**: Safe, reliable, full denominations, on-site help
- **Disadvantages**: Worst rates, limited hours, possible fees

## Is It Really Worth Exchanging Yen Now?

Simply put: **Yes, but with staggered purchases.**

By the end of 2025, the TWD/JPY rate is about 4.85. In the second half of the year, Taiwan’s currency exchange demand grew by 25%, mainly due to travel recovery and hedging needs. But the yen is still volatile—amid the US easing cycle supporting the yen, and the Bank of Japan’s hawkish signals, market expects a rate hike to 0.75% on December 19 (a 30-year high). Japan’s 10-year bond yield has hit a 17-year high of 1.93%.

USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now. Short-term rebound to 155 is possible, but medium to long-term forecasts suggest it will stay below 150. In short, exchanging now is advantageous, but don’t go all-in at once—splitting into 2-3 purchases can diversify risk.

For long-term holders like students studying abroad, the yen’s safe-haven property is a form of protection—during global stock turbulence or rising geopolitical risks in the Taiwan Strait, the yen often strengthens against the trend, helping hedge domestic asset risks.

## What After Exchanging Yen? Don’t Let Your Money Sit Idle

Many people exchange yen and leave it untouched, wasting the appreciation opportunity. After exchanging, consider these four options:

**Yen Fixed Deposit**: Open a foreign currency account, deposit online, starting from 10,000 yen, with annual interest rates of 1.5-1.8%. Steady and risk-free.

**Yen Insurance Policy**: Cathay and Fubon Life offer yen savings insurance with guaranteed rates of 2-3%, suitable for medium-term holding.

**Yen ETFs** (e.g., 00675U, 00703): Yuanta’s 00675U tracks the yen index; you can buy fractional shares via broker for dollar-cost averaging. Higher risk than deposits but more growth potential; annual management fee only 0.4%.

**Yen Forex Trading**: Directly trade USD/JPY or EUR/JPY on forex platforms, open 24 hours, with both long and short options, requiring minimal capital to experience swing trading.

## Quick FAQs

**Q. How much yen can NT$10,000 buy?**

Based on Taiwan Bank’s December 10 rate: cash selling rate about 4.85, NT$10,000 ≈ 48,500 yen. Using interbank rate (~4.87), about 48,700 yen—difference of roughly 200 yen (about NT$40).

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

Cash rate is the price banks offer for physical cash transactions, usually 1-2% worse than interbank rate, but immediate and portable. Interbank rate applies to electronic transfers and settlement, offering better rates but T+2 settlement.

**Q. What do I need to bring for currency exchange?**

At counters, Taiwanese: ID + passport; foreigners: passport + residence permit. For companies: business registration. Online reservations require transaction notification. Under 20 need parent’s consent; amounts over NT$100,000 may require source of funds declaration.

**Q. Are there limits on ATM withdrawals?**

From 2025, many banks have adjusted limits. CTBC: NT$120,000/day; Taishin: NT$150,000/day; E.SUN: NT$150,000/day (including debit). It’s recommended to split withdrawals or use your bank’s card to avoid cross-bank fees.

## Summary: Now is the Right Time for Studying Abroad and Small Investments

Yen is no longer just for travel pocket money but also a hedging and investment asset. Whether you’re preparing to study abroad, traveling to Japan next year, or want to hedge against TWD depreciation by converting funds into yen, following the principles of “staggered exchange + don’t leave it idle after exchange” can minimize costs and maximize returns.

Beginners are advised to start with “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transition into fixed deposits, ETFs, or forex swing trading based on needs. This way, you not only enjoy cost-effective travel but also add a layer of protection during global market turbulence.