2025 Yen Exchange Showdown: How to Exchange 100,000 Yen at the Lowest Cost?

Is it really cost-effective to exchange for Japanese Yen now?

The TWD/JPY exchange rate has reached 4.85, up 8.7% from 4.46 at the beginning of the year—meaning just by exchanging now, you’re already making a profit on the spread. But the key question is: How to exchange in the most economical way?

Don’t think that just going to the bank counter is enough. For the same NT$100,000 exchange, choosing the wrong method could cost an extra NT$1,500-2,000. We’ve tested major banks and foreign exchange channels in Taiwan and compiled the most cost-effective methods.

Quick Reference Table for Four Major JPY Exchange Channels

Summary: If you have a budget of NT$50,000 to NT$100,000, the most economical combo is “Taiwan Bank Online FX + Airport Branch Withdrawal.”

Why is bank counter exchange the most expensive option?

Exchanging cash directly at the bank or airport uses the “cash selling rate,” which is about 1-2% worse than the market spot rate. For example, on December 10:

• Cash selling rate: 0.2060 TWD/JPY (1 TWD = 4.85 JPY)
• Spot selling rate: 0.2063 TWD/JPY (1 TWD = 4.87 JPY)

Exchanging NT$100,000:

• At the counter: 485,000 JPY
• Online FX: 487,000 JPY
• Difference: 2,000 JPY (about NT$400 loss)

Plus, some banks charge an additional NT$100-200 fee, easily pushing total costs over NT$1,500.

Most cost-effective solution: Taiwan Bank “Easy Purchase” Online FX

This is the top choice for travelers and small investors.

How to do it:

1. Visit Taiwan Bank’s “Easy Purchase” online FX platform
2. Select JPY, amount, and designated pickup branch
3. Pay via Taiwan Pay (NT$10 fee or free online)
4. Go to the designated branch (airport branches available 24/7) with ID + transaction notification to pick up

Cost estimate (for NT$100,000):

• Exchange rate advantage: about 0.5%
• Service fee: NT$10 or free
• Total loss: NT$300-500

Advantages:

• 14 airport branches, including 2 open 24/7
• Better exchange rate than counter
• Can schedule pickups, diversifying exchange rate risk

The downside is you need to book at least 1-3 days in advance, so it’s not suitable for last-minute needs.

Second option: Online FX + Foreign Currency ATM Withdrawal

Suitable for investors with foreign currency accounts who want to enter gradually.

Using E.SUN Bank App as an example:

• Exchange online at “spot sell rate” (~4.87)
• Deposit into foreign currency account
• Withdraw cash anytime via foreign currency ATM

Cost (for NT$100,000):

• ATM interbank withdrawal fee: NT$5 (free with same bank card)
• Spread fee: NT$100+ depending on bank
• Total: NT$500-1,000

Advantages:

• 24/7 operation, no banking hours limit
• Monitor exchange trends, buy low when NT$ vs JPY drops below 4.80
• Flexible withdrawals, avoid exchanging all at once

Disadvantages:

• Need to open a foreign currency account first
• About 200 foreign currency ATMs nationwide; may run out during peak times (e.g., airports)
• Single withdrawal limit (most banks cap at NT$150,000 equivalent in JPY cash)

Emergency: Direct foreign currency ATM withdrawal

No time to visit the bank or need cash urgently? Use a chip-enabled financial card at foreign currency ATMs.

Features:

• Instant withdrawal, 24/7 operation
• Deducts directly from TWD account, skipping foreign currency account setup
• SFB Bank’s daily limit NT$150,000, no FX fee

Risks:

• Limited ATM locations, may be hard to find
• Fixed denominations (only 1,000/5,000/10,000 JPY bundles)
• During busy times, cash may run out

This is only suitable for “urgent needs,” not large amounts.

How to grow your money after exchanging NT$100,000+?

Don’t let your yen sit idle. Depending on your investment profile, options include:

1. JPY Fixed Deposit (Conservative)

• Starting from NT$10,000
• Annual interest rate 1.5-1.8%
• Open online via E.SUN/Taiwan Bank foreign currency accounts

2. JPY ETFs (Balanced)

• Yuanta 00675U (tracks JPY index)
• Management fee 0.4% annually
• Buy fractional shares via broker apps, more flexible for regular investing

3. Short-term FX Swing Trading (Advanced)

• Trade USD/JPY or EUR/JPY
• Zero commission, low spread
• Suitable for short-term JPY fluctuations

4. JPY Insurance Policies (Mid-term)

• Cathay/Fubon savings insurance
• Guaranteed interest rate 2-3%
• Hold for 3-5 years

Market outlook: The Bank of Japan is expected to raise interest rates to 0.75% on December 19 (a 30-year high). USD/JPY may temporarily return to around 155, but medium-long term, it’s forecasted below 150. As one of the world’s top three safe-haven currencies, JPY is suitable for risk hedging during Taiwan stock market volatility.

Quick Q&A

Q: How much is the difference between cash rate and spot rate?
A: About 1-2%. Cash rate applies to physical cash transactions; spot rate is for electronic transfers. For cash JPY, the cash rate is unavoidable, but online FX can minimize the spread.

Q: Do I need to declare when exchanging NT$100,000?
A: Amounts over NT$10 million require a declaration of source of funds. Bring ID + passport to the counter; review takes about 5-10 minutes.

Q: Are there limits on foreign currency ATM withdrawals?
A: Yes. Most banks cap at NT$120,000-150,000 per day with same bank cards; other banks follow their own rules. Consider spreading withdrawals or using your own bank card to avoid limits.

Q: Can I cancel the exchange if the rate drops after?
A: Online FX generally does not support canceling. Once exchanged, the rate is locked in. It’s best to exchange when the rate is relatively low (e.g., when NT$ appreciates).

Final advice

The golden rule for exchanging JPY in 2025:

1. Watch the trend: NT$ vs JPY around 4.85, already appreciated from the start of the year—suitable for phased entry
2. Choose the right channel: Taiwan Bank online FX is essential for small investors, with the highest cost savings
3. Don’t just hold: Consider JPY fixed deposits (1.5-1.8%) or ETFs to let your idle funds earn interest
4. Diversify withdrawals: Avoid exchanging all at once; do 3-5 smaller transactions during dips for better risk management

Whether you’re reserving travel funds for Japan next year or hedging against NT$ depreciation, understanding the low points of the exchange rate, selecting the right channels, and timely deployment can minimize costs and maximize returns.