## Japanese Yen Exchange Guide: 3 Money-Saving Tips, 1 Hedging Strategy

**Is now the right time to exchange yen?**

As of December 2025, the TWD to JPY rate is about 4.85, up 8.7% from 4.46 at the beginning of the year. What does this mean? For Taiwanese investors, the appreciation potential of the yen is quite significant. Especially under the pressure of TWD depreciation, many are considering exchanging yen to balance their asset allocation.

But here’s a key point: **It’s cost-effective to exchange now, but don’t do it all at once.**

## Why pay attention to the yen?

Many think of the yen as just “pocket money” for travel, but in reality, the yen has long been one of the world’s three major safe-haven currencies (alongside the USD and Swiss Franc). Japan’s stable economy, low debt, and the rising expectation of interest rate hikes by the central bank make the yen a formidable hedge against fluctuations in the Taiwan stock market.

More importantly, Bank of Japan Governor Ueda Kazuo recently made hawkish comments boosting market expectations, with a projected rate hike to 0.75% in December (a 30-year high). This will further support the yen. From an investment perspective, the yen can be used not only for travel but also for hedging and small gains.

## How to exchange NT$50,000 most cost-effectively?

### First tip: Online currency exchange + airport pickup

This is the smartest approach before traveling. Taiwan Bank’s “Easy Purchase” online currency exchange has no handling fee (using Taiwan Pay costs only NT$10), with about 0.5% better exchange rates, and you can pick up the currency directly at the airport (14 locations in Taoyuan, 2 open 24 hours).

**Advantages**: No need to open a foreign currency account in advance, better exchange rates, almost zero handling fee.
**Disadvantages**: Need to make a reservation 1-3 days ahead.
**Estimated cost**: About NT$300-800 for exchanging NT$50,000.

### Second tip: Online currency exchange + foreign currency account

If you have time to monitor rates, you can use bank apps to buy in batches at low points (e.g., when TWD/JPY is below 4.80), getting about 1% better than cash exchange rates. Banks like E.SUN and Mega International support this.

After exchanging, don’t let the yen sit idle without earning interest. Consider these options for foreign currency accounts:

**Yen fixed deposit**: The safest, starting from 10,000 yen, with annual interest rates of 1.5-1.8%. E.SUN Bank and Bank of Taiwan offer this.
**Yen ETFs**: Want higher growth? Yuanta 00675U tracks the yen index, with a management fee of only 0.4% per year, investable via brokerage apps in fractional shares.
**Advantages**: 24-hour trading, allows dollar-cost averaging.
**Disadvantages**: Need to open a foreign currency account first; withdrawal of cash incurs additional fees.
**Estimated cost**: NT$500-1,000.

### Third tip: Foreign currency ATM cash withdrawal

No time to exchange in advance? Foreign currency ATMs support 24-hour instant withdrawals. Just bring a chip-enabled bank card, and deducting from your TWD account costs only NT$5 per transaction. Some banks like E.SUN have a daily limit of NT$150,000 with no currency exchange fee.

**Advantages**: Instant, flexible, very low cross-bank fee.
**Disadvantages**: Limited locations (about 200 nationwide), cash may run out during peak hours, fixed denominations (1,000/5,000/10,000 yen).
**Estimated cost**: NT$800-1,200.

### Fourth tip: In-person cash purchase (backup plan)

Traditional method: Bring cash in TWD to a bank or airport counter to buy yen cash. Safe and reliable, but the selling rate is about 1-2% worse than the spot rate, plus possible handling fees, making it the most expensive option.

Taiwan Bank, Mega International, and Hua Nan Bank waive handling fees, but E.SUN, Fubon, and Cathay United Bank charge NT$100-200 per transaction.

**Advantages**: Instant cash on the spot, full denominations available.
**Disadvantages**: Worse exchange rates, limited operating hours.
**Estimated cost**: NT$1,500-2,000.

## Overview of bank yen cash selling rates (as of December 10, 2025)

| Bank | Cash Exchange Rate (JPY/TWD) | In-Person Fee |
|-------|------------------------------|--------------|
| Taiwan Bank | 0.2060 | Free |
| Mega Bank | 0.2062 | Free |
| Hua Nan Bank | 0.2061 | Free |
| First Bank | 0.2062 | Free |
| CTBC Bank | 0.2065 | Free |
| E.SUN Bank | 0.2067 | NT$100 per transaction |
| Fubon Bank | 0.2058 | NT$100 per transaction |
| Cathay United | 0.2063 | NT$200 per transaction |
| Taipei Fubon | 0.2069 | NT$100 per transaction |

## What to do after exchanging yen?

Once you have yen, don’t let it sit idle. Here are four suitable options for small-scale beginners:

**Capital preservation**: Yen fixed deposit, 1.5-1.8% annual interest, suitable for risk-averse investors.
**Protection**: Yen insurance policies, such as Cathay or Fubon savings insurance, with guaranteed interest rates of 2-3%, medium-term holding.
**Growth**: Yen ETFs like 00675U, for diversification and growth, with an annual management fee of 0.4%.
**Swing trading**: Forex trading of USD/JPY or EUR/JPY, suitable for experienced traders, with 24-hour bidirectional trading.

## Quick FAQs

**Q: How much is the difference between cash exchange rate and spot rate?**
Cash rate is for physical banknotes, usually 1-2% worse than the spot rate (used for electronic transfers). Plus, handling fees may apply, increasing costs.

**Q: How many yen can I get for NT$10,000?**
Using Taiwan Bank’s cash selling rate of 4.85, NT$10,000 ≈ 48,500 yen; at the spot rate of 4.87, ≈ 48,700 yen. The difference is about 200 yen (roughly NT$40).

**Q: What is the daily withdrawal limit at foreign currency ATMs?**
Post-2025 regulations, most banks have a limit of NT$100,000-150,000 per day (equivalent). CTBC’s card allows NT$120,000/day, TCB NT$150,000/day, E.SUN has NT$50,000 cash + NT$150,000 card. It’s recommended to split withdrawals and use your own bank card to avoid NT$5 cross-bank fee per transaction.

**Q: What documents are needed?**
For in-person exchange: ID card + passport (foreigners need passport + residence permit); online reservation requires transaction notification. Under 20 needs parental consent; amounts over NT$100,000 may require source of funds declaration.

## One-sentence summary

The yen has evolved from “travel pocket money” to “hedging investment asset.” Grasp the rhythm of “batch exchange + don’t leave it idle after exchanging” to minimize costs and maximize returns. Beginners can start with online currency exchange or foreign currency ATMs, then shift to fixed deposits, ETFs, or swing trading based on risk preference, adding an extra layer of protection amid global market fluctuations.