Japanese Yen Exchange Guide 2025: How to Get the Best Value with a Budget of 50,000 to 200,000?

Entering the fourth quarter of 2025, the Taiwan dollar to Japanese yen exchange rate reached a relatively high point of 4.85, sparking renewed discussions about the timing of yen exchanges. Whether you’re planning to travel to Japan for the New Year or want to allocate assets using the yen, one of the world’s top three safe-haven currencies, choosing the right exchange method can save you a significant amount in transaction fees.

Why is the Japanese Yen Worth Paying Attention To?

When it comes to foreign currencies most loved by Taiwanese people, the yen always ranks first. But exchanging yen isn’t just for travel purposes.

Travel and Consumption: Merchants across Japan still primarily use cash (credit card penetration about 60%), and shopping at department stores in Tokyo and Osaka, skiing in Hokkaido, or beach resorts in Okinawa usually require cash in yen. Additionally, those purchasing Japanese cosmetics and anime merchandise or planning to work holiday in Japan need to prepare yen in advance.

Investment and Asset Protection: The yen, along with the US dollar and Swiss franc, is one of the world’s three major safe-haven currencies. During global market volatility, funds tend to flow into the yen—for example, during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a single week, effectively buffering the Taiwan stock market’s 10% decline. For Taiwanese investors, holding some yen can add a defensive layer to their portfolios.

Arbitrage Opportunities in Exchange Rates: The Bank of Japan maintains ultra-low interest rates (currently 0.5%), making the yen a “funding currency” with a high interest rate differential of up to 4.0% compared to the US dollar. This environment attracts many arbitrage traders.

Current Exchange Rate Situation: Is Now a Good Time to Exchange?

As of mid-December 2025, the Taiwan dollar to yen rate is about 4.85, up 8.7% from 4.46 at the start of the year. This means that whether for travel or investment, Taiwanese people have gained considerable exchange benefits, especially under the pressure of a weakening Taiwan dollar.

However, the yen exchange rate is currently quite volatile. Recently, Bank of Japan Governor Ueda Kazuo’s hawkish comments pushed up expectations of rate hikes to 80%, with the market expecting a December 19 meeting to raise rates to 0.75% (a 30-year high), and Japanese bond yields reaching a 17-year high of 1.93%. The USD/JPY rate has fallen from a high of 160 at the start of the year to 154.58, and may fluctuate around 155 in the short term, but medium to long-term forecasts suggest it could fall below 150.

Conclusion: It’s feasible to exchange yen now, but it’s recommended to do so in installments to avoid short-term volatility risks.

Four Major Yen Exchange Methods in Taiwan: Practical Comparison

For budgets ranging from 50,000 to 200,000 TWD, we’ve summarized four common exchange channels:

Option 1: In-person cash exchange (most traditional but highest cost)

Bring cash in TWD to a bank branch or airport counter to exchange for yen cash. Simple to operate, but banks usually sell at a “cash selling rate” which is 1-2% worse than telegraphic transfer rates, plus possible fees, making this the most expensive among the four options.

For example, Taiwan Bank’s rate on December 10, 2025, was about 0.2060 TWD/JPY (1 TWD = 4.85 JPY). Different banks have different rates and fees: E.Sun Bank and Cathay United Bank charge around 100-200 TWD in fees, while some like Taiwan Bank and Mega Bank waive fees.

Suitable for: Infrequent users, small amounts, urgent needs at the airport.

Estimated cost: Exchanging 50,000 TWD results in a loss of about 1,500-2,000 TWD.

Option 2: Online currency exchange with cash withdrawal

Use bank app or online banking to convert TWD to yen at the “spot selling rate” (about 1% better than cash rate), deposit into a foreign currency account, then withdraw cash at counters or foreign currency ATMs. Ideal for those observing exchange rate trends and wanting to buy in installments at lower points.

E.Sun Bank, Taishin Bank, and others offer this service. Withdrawal fees are usually around 100 TWD, but using foreign currency ATMs can reduce cross-bank fees to about 5 TWD, lowering costs further.

Advantages: 24/7 operation, better rates, ability to average costs over time.
Limitations: Need to open a foreign currency account first, withdrawal fees apply.

Suitable for: Investors with forex experience planning long-term yen holdings.

Estimated cost: Exchanging 50,000 TWD results in a loss of about 500-1,000 TWD.

Option 3: Pre-arranged currency exchange for airport pickup (most recommended for travelers)

No need for a foreign currency account. Fill in currency, amount, and pickup branch (can specify airport) on the bank’s website. After the bank completes the transfer, bring ID and transaction notice to pick up the yen in person. Taiwan Bank’s “Easy Purchase” and Mega Bank offer this option, with about 0.5% better rates and often no fees (Taiwan Bank’s payment via TaiwanPay costs only 10 TWD).

Taoyuan Airport has 14 Taiwan Bank branches, including 2 open 24 hours, making it very convenient for pre-trip arrangements.

Advantages: Better rates, usually no fees, pick-up at designated airport.
Limitations: Need to book 1-3 days in advance, pick-up limited to bank hours.

Suitable for: Well-planned travelers who want to pick up cash at the airport.

Estimated cost: Exchanging 50,000 TWD results in a loss of about 300-800 TWD.

Option 4: 24-hour foreign currency ATM withdrawal

Use a bank card at foreign currency ATMs to withdraw yen cash. Supports 24/7 operation and interbank transactions (only 5 TWD fee from TWD account). Major banks like E.Sun Bank and CTBC Bank have about 200 ATMs nationwide offering yen, USD, and other major currencies.

E.Sun Bank’s foreign currency ATMs allow withdrawal from TWD accounts with a daily limit of 150,000 TWD and no exchange fee. Note that Japan’s ATM withdrawal services will be adjusted by the end of 2025 to require international cards (Mastercard/Cirrus).

Advantages: Instant withdrawal, high flexibility, low cross-bank fees.
Limitations: Limited locations and denominations (usually fixed at 1,000/5,000/10,000 JPY), cash may run out during peak hours.

Suitable for: Urgent needs, busy professionals.

Estimated cost: Exchanging 50,000 TWD results in a loss of about 800-1,200 TWD.

Cost Comparison Table of the Four Methods

After Exchanging Yen: 4 Ways to Add Value

Once you have yen, don’t let it sit idle without interest. You can choose from the following options based on your risk appetite:

1. Yen Fixed Deposit (Conservative)
E.Sun Bank, Taiwan Bank offer foreign currency accounts, operable online, with a minimum of 10,000 yen and annual interest rates of 1.5-1.8%. Suitable for short trips or capital preservation.

2. Yen Insurance Policies (Medium-term Yield)
Cathay Life, Fubon Life provide yen savings insurance with guaranteed rates of 2-3%, offering both protection and growth.

3. Yen ETFs (Growth-oriented)
Yuanta 00675U, Cathay 00703 track yen trends and can be bought as fractional shares via brokerage apps, suitable for regular investment. Management fee about 0.4%, diversifying risk.

4. Forex Swing Trading (Advanced)
Trade USD/JPY or EUR/JPY directly on forex platforms to capture exchange rate fluctuations. Benefits include two-way trading, 24-hour market, and leverage with small capital, but requires understanding of risks.

While the yen has safe-haven characteristics, it still faces two-way volatility—rate hikes by the Bank of Japan are bullish, but global arbitrage unwinding or geopolitical conflicts (Taiwan Strait, Middle East) could depress the rate. Beginners should start with fixed deposits or ETFs, then consider swing trading after gaining experience.

Quick FAQs

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

Cash rate applies to physical cash transactions, with immediate delivery, but is 1-2% worse than the spot rate. Spot rate (T+2) is the price in the interbank market within two business days, closer to international market prices, and generally cheaper.

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 of 4.87, about 48,700 yen—roughly a 200 yen difference (about 40 TWD).

Q: What ID do I need for in-person exchange?

Taiwanese nationals: ID card + passport; foreigners: passport + residence permit. For online pre-booking, bring transaction notice. Large amounts (over 100,000 TWD) may require source of funds declaration.

Q: What’s the daily withdrawal limit at foreign currency ATMs?

From October 2025, banks have strengthened anti-fraud measures:

• CTBC: equivalent of 120,000 TWD/day, 20,000 TWD per transaction for other banks
• Taishin: 150,000 TWD/day
• E.Sun: 150,000 TWD/day (including debit card)

It’s advisable to diversify withdrawals or use your own bank card to avoid cross-bank fees and plan ahead during peak hours to prevent cash shortages.

Summary

The yen has evolved from a simple “travel pocket money” currency to an asset with hedging and investment value. Whether for next year’s trip to Japan or asset diversification, mastering “batch exchange + post-exchange value-adding” strategies can reduce costs and maximize returns.

Beginners should start with the simplest options like “Taiwan Bank’s online exchange + airport pickup” or “foreign currency ATM,” then gradually move into fixed deposits, ETFs, or even forex swing trading. This approach makes traveling more economical and provides an extra buffer during global market turbulence.