Japanese Yen denomination options and exchange strategies: How to get the most value with 50,000 TWD

Why should you exchange for Japanese Yen now?

By the end of 2025, the TWD/JPY exchange rate has approached 4.85, up more than 8% from 4.46 at the beginning of the year. Exchanging for Yen is not just an option for traveling abroad but also an investment tool to hedge against TWD depreciation risks.

Japan’s economy is stable, with relatively low debt, and the Yen has long been considered one of the world’s three major safe-haven currencies (alongside the US dollar and Swiss franc). During global market turbulence, funds often flow into Yen for safety—during the Russia-Ukraine conflict in 2022, the Yen appreciated 8% in a single week, effectively buffering stock market declines. For Taiwanese investors, allocating some Yen assets can not only be for leisure but also hedge against Taiwan stock market volatility.

Additionally, the latest hawkish stance from the Bank of Japan (BOJ), with Governor Ueda hinting that the rate hike expectation has reached 80%, and an anticipated increase to 0.75% in December (a 30-year high), further supports the Yen’s medium-term performance.

Latest TWD/JPY market and investment timing

As of December 10, 2025, the TWD/JPY rate is about 4.85. Year-to-date, it has appreciated by 8.7%, but in the short term, it still fluctuates within the 154-156 TWD per 100 Yen range.

Market observations show that in the second half of the year, Taiwan’s foreign exchange demand increased by 25%, mainly due to the recovery of outbound travel and hedging needs. However, this also means:

• Short-term volatility risk: If global arbitrage positions are closed or geopolitical tensions escalate, Yen may retreat 2-5% in the short term.
• Medium to long-term optimism: As the US enters a rate-cutting cycle, Yen, as a low-interest financing currency, still has long-term appreciation potential.

Advice: Stagger your purchases rather than exchange all at once. Based on your travel or investment schedule, completing the exchange in 2-3 installments can effectively spread out exchange rate risks.

Yen denomination composition: How to combine small bills for daily spending

Japanese ATMs and convenience stores mainly offer denominations of 1,000, 5,000, and 10,000 Yen. For travelers, a good combination is important:

• 1,000 Yen: Suitable for convenience store and snack purchases (about NT$200)
• 5,000 Yen: For medium expenses (about NT$1,000), most frequently used
• 10,000 Yen: For shopping, dining, hotel payments (about NT$2,000)

For a budget of NT$50,000, recommended allocation:

• 1,000 Yen bills: 3-5 notes (about 3,000-5,000 Yen, NT$600-1,000)
• 5,000 Yen bills: 6-8 notes (about 30,000-40,000 Yen, NT$6,000-8,000)
• 10,000 Yen bills: adjust based on remaining amount

This setup covers daily small expenses and avoids bills that are too large to use conveniently.

Four ways to exchange TWD for Yen in Taiwan: comparison

1. Counter cash exchange: the most traditional but with the highest cost

Bring NT$ to a bank branch or airport counter to exchange for Yen cash. Simple to operate but uses the “cash selling rate” (1-2% worse than spot rate), resulting in higher costs.

As of December 10, 2025, Taiwan Bank’s cash selling rate is about 0.2060 NT$/Yen (1 NT$ = 4.85 Yen). Some banks also charge fixed handling fees.

Bank cash selling rates and counter fees (updated 2025/12/10):

Advantages: Safe, reliable, full denominations, in-person assistance. Disadvantages: Exchange rate spread, limited operating hours (weekday 9:00-15:30), possible additional fees. Suitable for: Those unfamiliar with online methods or needing small, urgent exchanges.

Estimated cost (NT$50,000): loss of NT$1,500-2,000.

2. Online exchange + ATM withdrawal: the most flexible hybrid method

Use online banking to convert NT$ into Yen and deposit into a foreign currency account (using the spot selling rate, better than cash selling by about 1%), then withdraw cash via a financial card at foreign currency ATMs. Single cross-bank withdrawal fee is NT$5.

SinoPac Bank’s foreign currency ATMs allow withdrawal of Yen up to NT$150,000 per day from a NT$ account, with no currency exchange fee. Other banks like CTBC have a daily limit of NT$120,000.

This method is ideal for observing low exchange rates (e.g., when NT$ to Yen drops below 4.80) and making staggered purchases to spread costs.

Advantages: 24/7 operation, flexible batch buying, better rates, low cross-bank fees. Disadvantages: Need to open a foreign currency account first, limited ATM locations (~200 nationwide), high peak-time demand may deplete cash. Suitable for: Experienced forex investors needing flexible timing.

Estimated cost (NT$50,000): loss of NT$500-1,000.

3. Online currency exchange + airport pickup: best pre-departure plan

No need for a foreign currency account. Book online via bank website, select pickup branch and date, and pick up in person with ID and transaction notice. Taiwan Bank’s “Easy Purchase” online exchange is fee-free (pay NT$10 via TaiwanPay), with about 0.5% favorable rate.

Taoyuan Airport has 14 Taiwan Bank counters, including 2 open 24 hours, very convenient.

Advantages: Better rates, often no fees, direct airport pickup, well-planned. Disadvantages: Need to book 1-3 days in advance, pickup limited to business hours, branch appointments cannot be changed. Suitable for: Travelers with a planned schedule who want to withdraw at the airport.

Estimated cost (NT$50,000): loss of NT$300-800.

4. Foreign currency ATM withdrawal: most convenient for emergencies

Use a chip-enabled bank card to withdraw Yen cash from foreign currency ATMs, available 24 hours. Cross-bank withdrawal fee is NT$5, no currency exchange fee.

However, ATM locations and denominations are limited (usually only major currencies, fixed denominations of 1,000/5,000/10,000 Yen). Avoid waiting until the last minute to withdraw to prevent cash shortages.

Advantages: Instant withdrawal, high flexibility, low cross-bank fees. Disadvantages: Limited locations, fixed denominations, risk of sold-out ATMs during peak times. Suitable for: Last-minute needs or when in a hurry.

Estimated cost (NT$50,000): loss of NT$800-1,200.

Cost comparison of the four exchange methods

Difference between cash exchange rate and spot rate: what’s the gap?

Cash exchange rate is the rate banks offer for physical cash (banknotes/coins), suitable for travel and on-site transactions. It’s convenient but usually 1-2% worse than the spot rate.

Spot rate is the foreign exchange market rate settled T+2, used for electronic transfers and non-cash transactions (like foreign currency accounts). It’s more favorable and close to international market prices.

For example, Taiwan Bank’s December 10, 2025, cash selling rate is about NT$0.2060 per Yen, while the spot rate is about NT$0.2065. Exchanging NT$10,000 at cash rate yields about 48,500 Yen; at spot rate, about 48,700 Yen—a difference of 200 Yen (NT$40). The larger the amount, the more significant the impact of the spread.

What do you need to prepare for exchanging Yen?

For counter transactions, Taiwanese citizens need to bring ID card + passport; foreigners need passport + residence permit. If exchanging on behalf of a company, bring business registration documents.

If you’ve booked online in advance, also bring transaction notice.

Special cases: Under 20 years old require parental consent and ID; large exchanges over NT$100,000 may require source of funds declaration.

Latest regulations on foreign currency ATM withdrawal limits

From October 2025, banks have adjusted withdrawal limits:

New observations: Daily limits mostly reduced to NT$100,000-150,000. Consider splitting withdrawals or using your own bank card to avoid cross-bank fees (NT$5 per transaction). During peak times (e.g., airports), cash may run out early, so plan ahead.

How to invest after exchanging Yen

If you’re not just holding cash, you can transfer Yen into the following stable or growth-oriented assets:

1. Yen fixed deposit
E.SUN and Taiwan Bank offer foreign currency accounts, with online deposits starting from 10,000 Yen, annual interest rates of 1.5-1.8%. Suitable for stable income seekers.

2. Yen insurance policies
Cathay and Fubon offer savings insurance with guaranteed interest rates of 2-3%. Suitable for medium-term holding with added protection.

3. Yen ETFs
Like Yuanta 00675U tracking Yen index, can be bought as fractional shares via brokerage apps, suitable for dollar-cost averaging. Management fee around 0.4%, diversifies risk.

4. Swing trading
Experienced traders can participate in short-term fluctuations of USD/JPY or EUR/JPY, leveraging Yen’s two-way trading mechanism. Both long and short positions, 24/7 trading, with small capital.

While Yen is a safe-haven asset, it also fluctuates bidirectionally. BOJ rate hikes support it, but global arbitrage unwinding or geopolitical conflicts may depress it. Choose tools according to your risk tolerance.

How much Yen can I get for NT$10,000?

Using the formula: Yen amount = NT$ amount × current exchange rate

At Taiwan Bank’s December 10, 2025, cash selling rate of NT$0.2060/ Yen (1 NT$ = 4.85 Yen), NT$10,000 exchanges for about 48,500 Yen.

Using the spot rate of NT$0.2065/ Yen (about 4.87 Yen), it’s about 48,700 Yen, a difference of roughly 200 Yen (NT$40).

Summary: Best strategy for beginners exchanging Yen

Yen is no longer just for travel “pocket money” but also a hedge and small investment asset. Whether traveling or hedging TWD depreciation, following the principles of “staggered exchange + don’t hold all at once” can minimize costs and maximize gains.

Beginners should start with the simplest methods like “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM,” then transfer Yen into fixed deposits, ETFs, or swing trading based on needs. This way, you can enjoy cost-effective travel and add a layer of protection during market turbulence.