Japanese Yen appreciates by 8.7%, the complete guide to the final exchange in 2025 | Cost comparison of 4 major exchange channels

Taiwan dollar to Japanese yen has surged to 4.85, up from just 4.46 at the beginning of the year, an increase of nearly 9%. The peak travel season in Japan combined with rising risk aversion has prompted many to consider currency exchange. But when it comes to exchanging for yen, do you know that just the handling fees and exchange rate spreads could cost you an extra NT$1,500-2,000?

The handling fee for USD to TWD exchange is generally around 0.5-1%, and the same applies to JPY. Today, we will directly tell you the real costs of four exchange channels, the most cost-effective combinations, and whether you should exchange now by the end of 2025.

Why is the end-of-year yen exchange particularly worth paying attention to?

Establishing the status as a safe-haven asset

The yen has long been ranked among the world’s three major safe-haven currencies (USD, Swiss Franc, Yen). During the Russia-Ukraine conflict in 2022, the yen appreciated by 8% in a week, while the stock market fell 10%—this demonstrates its safe-haven value. For Taiwanese investors, exchanging for yen is not only for travel but also a tool to hedge against Taiwan stock market volatility.

Bank of Japan interest rate hike expectations

Governor Ueda Kazuo recently made hawkish comments, boosting market expectations to 80%, with a rate hike of 0.25 basis points to 0.75% expected at the December 19 meeting (a 30-year high). Japanese government bond yields have hit a 17-year high of 1.93%. This indicates that the yen will be supported in the medium to long term, but short-term arbitrage closing may cause fluctuations of 2-5%.

Ideal allocation under TWD depreciation pressure

In the second half of the year, Taiwan’s currency exchange demand grew by 25%, mainly driven by travel recovery and hedging needs. Compared to the beginning of the year, the yen has appreciated by 8.7%, which is a considerable forex gain for small investors.

How much do the costs differ across 4 exchange channels?

Option 1: Online currency exchange + airport pickup (Best for beginners)

Lowest cost and most convenient

Taiwan Bank’s “Easy Purchase” online currency exchange has no handling fee (payment via Taiwan Pay costs only NT$10), with about 0.5% favorable exchange rate. No need for a foreign currency account—just fill in the currency, amount, pickup branch, and date, then bring your ID and transaction notification to pick up in person.

Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours), ideal for planning before departure. Exchanging NT$50,000 results in a loss of about NT$300-800, the lowest among the four options.

• Advantages: Favorable exchange rate, often no handling fee, can specify airport pickup, 24-hour counters available
• Disadvantages: Need to make an appointment in advance (at least 1-3 days), branch cannot be changed
• Suitable for: Planned travelers who want to pick up cash directly at the airport

Option 2: Foreign currency ATM withdrawal (Most flexible option)

24-hour withdrawal, controllable costs

Use a chip-enabled financial card to withdraw yen cash at bank foreign currency ATMs, supporting 24-hour operation and interbank transactions. Deduct NT$5 cross-bank fee from your TWD account, no forex handling fee. E.SUN Bank’s foreign currency ATMs allow withdrawal of yen from TWD accounts, with a daily limit of NT$150,000.

However, note that there are only about 200 foreign currency ATMs nationwide, and cash may run out during peak times. Exchanging NT$50,000 results in a loss of about NT$800-1,200.

• Advantages: Instant 24-hour withdrawal, high flexibility, low interbank fee (NT$5), deducts from TWD account saving handling fees
• Disadvantages: Limited locations and denominations (fixed at 1,000/5,000/10,000 yen), may run out during peak times
• Suitable for: Those without time to visit banks or needing emergency cash

Option 3: Online exchange + in-branch withdrawal (Investor’s top choice)

Favorable rates, flexible batching

Use online banking or app to convert TWD into yen and deposit into a foreign currency account, using the “spot selling rate” (about 1% better than cash selling rate). If cash is needed, can withdraw at branches or foreign currency ATMs, but will incur a spread handling fee (starting around NT$100).

This method is best for observing exchange rate trends, entering in batches at low points (e.g., TWD/JPY below 4.80) to average costs. Exchanging NT$50,000 results in a loss of about NT$500-1,000.

• Advantages: 24/7 operation, can buy in batches, better exchange rates, suitable for long-term holding
• Disadvantages: Need to open a foreign currency account first, cash withdrawal incurs additional fees
• Suitable for: Those experienced with forex, using foreign currency accounts regularly, or investing in yen deposits

Option 4: In-branch cash exchange (Backup option)

Safe and reliable but most costly

Bring cash NT$ to a bank branch or airport counter to exchange for yen cash. Using “cash selling rate” (about 1-2% below spot rate), some banks also charge fixed handling fees. Exchanging NT$50,000 results in a loss of NT$1,500-2,000.

For example, Taiwan Bank’s cash selling rate on December 10, 2025, is about 0.2060 TWD/JPY (1 TWD = 4.85 JPY). Other major banks like E.SUN (0.2067) and Fubon (0.2069) have slightly worse rates.

• Advantages: Safe, full denominations, staff assistance
• Disadvantages: Worst exchange rate, limited hours, higher costs
• Suitable for: Those unfamiliar with online methods or urgent small exchanges at the airport

How much yen can NT$10,000 buy? Cost breakdown

For NT$10,000:

In-branch cash exchange (rate 4.85): 48,500 JPY, loss about NT$300

Online exchange + airport pickup (rate approx. 4.87): 48,700 JPY, loss about NT$50

ATM withdrawal (spot rate approx. 4.86): 48,600 JPY, loss about NT$100-200

The difference for the same NT$10,000 across channels can reach NT$250, and frequent exchanges over a year can accumulate significant costs. USD to TWD handling fees are around 0.5-1%, and JPY spreads are similar, so choosing the right channel can save a lot.

Is it worthwhile to exchange yen now?

Short-term fluctuations vs. long-term trend

USD/JPY has fallen from a high of 160 at the start of the year to around 154.58 now. Short-term volatility may bring it back to 155, but medium to long-term forecasts suggest below 150. The yen exchange rate remains volatile but with an overall upward trend.

Batching is the key

Avoid exchanging all at once. Instead, split into 3-4 batches, entering at low points (TWD/JPY below 4.80) to average costs and reduce risk. For travel, exchanging 2-3 weeks in advance is safest; for investment, consider technical lows for gradual entry.

After exchanging yen, where should the money go?

Once you have yen, keep it idle without interest, or consider the following allocations:

1. Yen fixed deposit (Conservative) Minimum NT$10,000, annual interest rate 1.5-1.8%. E.SUN and Taiwan Bank offer online foreign currency accounts for deposits.

2. Yen insurance policies (Mid-term holding) Cathay, Fubon life savings insurance, with guaranteed interest rates of 2-3%, suitable for 1-3 years.

3. Yen ETFs (00675U, 00703) (Growth) Yuanta 00675U tracks yen index, with 0.4% annual management fee, can be bought as fractional shares via broker app for dollar-cost averaging.

4. Forex trading USD/JPY, EUR/JPY (Swing trading) Direct trading of yen currency pairs, both long and short, 24-hour trading, suitable for experienced traders.

While yen is a safe-haven, it also has two-way volatility. BOJ rate hikes are positive, but global arbitrage unwinding or geopolitical conflicts could push it down. Diversification is key for investment.

Currency exchange plan by end of 2025

✅ 2-3 weeks before travel: Use “online exchange + airport pickup” reservation
✅ Urgent need: Use “foreign currency ATM” for 24-hour self-service withdrawal
✅ Small investments: Use “online exchange” to enter in batches, averaging costs
✅ Avoid: In-branch cash exchange unless no other options

What to bring for in-branch exchange? ID + passport (foreigners bring passport + residence permit), minors under 20 need parent accompaniment; large amounts (over NT$100,000) may require source declaration. If pre-booked online, bring transaction notification.

Foreign currency ATM withdrawal limits Banks have different limits due to new regulations (from October 2025, many banks strengthen anti-fraud measures):

It’s recommended to split withdrawals and use your own bank card to avoid cross-bank fees (NT$5 per transaction).

Summary

Yen is no longer just pocket money for travel but also an asset with hedging and investment value. As 2025 approaches, take advantage of the year-end holiday and yen appreciation trend, following the principles of “batch exchange + not leaving funds idle after exchange,” to minimize costs and add a layer of protection during market volatility.

For beginners, the simplest approach is “Taiwan Bank online exchange + airport pickup” or “foreign currency ATM.” Then, transfer yen into fixed deposits, ETFs, or even try swing trading. This way, you can enjoy more cost-effective travel and enhance your financial planning flexibility.