How to Get the Best Deal on Japanese Yen? Testing the Costs of 4 Purchase Methods

Ready to buy Japanese Yen? The USD/JPY exchange rate continues to fluctuate in 2026, prompting investors looking to capitalize on the yen’s depreciation and travelers planning trips to Japan to ask the same question: what’s the best way to buy yen to save the most money? We’ve gathered the latest data on four purchasing methods to help you understand the true costs of each. Whether your budget is 50,000 or 500,000 TWD, you’ll find the most suitable purchase option.

Why buy yen now? 3 key reasons investors and travelers should know

Many think buying yen is just for travel. But in reality, the yen has surpassed the “pocket money” status for tourists and now holds investment value and hedging functions.

Reason 1: Travel and daily expenses remain strong

Japan remains a top destination for Taiwanese travelers—shopping districts in Tokyo, Osaka, Kyoto, ski resorts in Hokkaido, resorts in Okinawa. Cash culture is still dominant, with only about 60% of merchants accepting credit cards, most transactions are cash-based.

Additionally, shopping via proxy, Japanese online auctions, anime merchandise, and even long-term working holiday expenses require direct yen payments. Buying yen in advance helps avoid hidden costs from exchange rate fluctuations.

Reason 2: The yen is one of the world’s three major safe-haven currencies

This is often overlooked. Alongside the US dollar and Swiss franc, the yen is a top safe-haven currency due to Japan’s stable economy and manageable government debt.

During global market turbulence, funds flow into the yen for safety. For example, during the Russia-Ukraine conflict in 2022, the yen appreciated 8% in a week, buffering a 10% decline in global stocks. For Taiwanese investors, buying yen isn’t just for leisure—it’s an effective hedge against Taiwan stock risks. With the TWD under continued depreciation pressure, allocating some assets in yen is a smart move.

Reason 3: Arbitrage opportunities and central bank policies

The Bank of Japan has maintained ultra-low interest rates (now raised to 0.75%), a 30-year high, making the yen a “funding currency.” Many international investors borrow yen at low rates and invest in higher-yield USD assets (USD/JPY interest rate differential about 3.5%) for arbitrage.

As the BOJ continues to raise rates, yen assets become more attractive. Meanwhile, Japanese government bonds yield 1.93%, a 17-year high, and short-term yen deposits now earn 1.5-1.8%. Buying yen not only has potential appreciation but also offers stable income through deposits.

4 main ways to buy yen in Taiwan: a quick cost overview

Now, let’s get practical. Many think buying yen just involves going to the bank, but exchange rate differences alone can cost you a few extra drinks. Here are four methods, with actual prices calculated for comparison.

Method 1: In-person cash purchase — traditional but most expensive

Bring TWD cash to a bank branch or airport counter and exchange for yen on the spot. Simple, safe, and reliable, suitable for those unfamiliar with online transactions.

But it’s the most costly. Banks offer “cash selling rates” (about 1-2% worse than spot rates), plus possible fixed fees, resulting in the biggest loss. For example, with 50,000 TWD, you might lose 1,500–2,000 TWD.

Using Taiwan Bank as reference, the cash selling rate is about 0.2060 TWD/JPY (roughly 4.85 TWD per 1 JPY). Exchanging 50,000 TWD yields about 242,500 JPY.

Pros: Safe, full denominations, on-site assistance, good for small or urgent needs.

Cons: Worst exchange rate, limited operating hours (9:00–15:30), possible extra fees.

Best for: Last-minute needs, urgent airport cash.

Method 2: Online currency exchange + ATM withdrawal — flexible, lower cost

Use bank app or online banking to convert TWD to JPY and deposit into a foreign currency account, using “spot selling rate” (about 1% discount). If cash is needed, withdraw from an ATM, with minimal cross-bank fee (around 5 TWD).

Advantages: 24/7 operation, allows installment purchases to average costs, better exchange rates. Many buy when TWD/JPY drops below 4.80 for lower average costs.

For 50,000 TWD, losses are about 500–1,000 TWD, saving over 1,000 TWD compared to in-person purchase.

Pros: Anytime operation, installment averaging, favorable rates, suitable for investment.

Cons: Need to open foreign currency account first, extra time for cash withdrawal, possible small cross-bank fees.

Best for: Experienced forex users, long-term holders.

Method 3: Online currency exchange + airport pickup — planned approach

No need for a foreign currency account. Fill in currency, amount, pickup branch, and date online. After booking, bring ID and transaction notice to pick up at the counter. Taiwan Bank and Mega Bank offer this service, with airport branches available.

Taiwan Bank’s “Easy Purchase” online exchange is fee-free (only 10 TWD via TaiwanPay), with about 0.5% favorable rate. Exchanging 50,000 TWD costs only 300–800 TWD in losses.

Ideal for pre-trip planning. Taoyuan Airport has 14 Taiwan Bank counters (2 open 24 hours), allowing you to pick up cash after customs without carrying large amounts beforehand.

Pros: Favorable rates, often no fees, convenient airport pickup, rate lock-in.

Cons: Need prior reservation (1–3 days ahead), limited to banking hours, branch-specific.

Best for: Travelers with fixed plans, wanting to avoid last-minute rush, airport cash pickup.

Method 4: Foreign currency ATM withdrawal — instant and flexible but with limits

Use chip-enabled bank card at foreign currency ATMs to withdraw yen cash. Benefits: 24/7 access, low cross-bank fee (~5 TWD), no exchange fee. Daily withdrawal limits vary; e.g., E.SUN and Taishin allow up to 150,000 TWD equivalent.

For 50,000 TWD, losses are about 800–1,200 TWD, between in-person and online exchange.

Note: Limited ATM locations (~200 nationwide), limited currency options, cash may run out during peak times (airports). Don’t wait until last minute.

Pros: Immediate cash, 24/7, low fees, no exchange fee.

Cons: Limited locations, denominations, possible cash shortages.

Best for: Last-minute cash needs, no time for bank visits.

Cost comparison table of the 4 methods

Summary: For budgets of 50,000–200,000 TWD, combining “online exchange + ATM” offers the best cost efficiency. For over 500,000 TWD, staggered online exchange purchases reduce risk and average rate.

Is buying yen now worthwhile? 2026 investment outlook

It’s February 2026. Reviewing recent exchange trends: early 2025 TWD/JPY was about 4.46, ending 2025 at 4.85, appreciating roughly 8.7%. For Taiwanese investors, this is a significant gain.

Is now a good time to buy yen? Yes, but with staggered purchases.

Exchange rate trends and central bank policies

The BOJ raised rates to 0.75% in December 2025, a 30-year high. USD/JPY is around 154.58, down from 160 earlier this year—a 5.42 point drop. Short-term, the yen may be supported by US rate cuts, but long-term, forecasts suggest below 150.

Japanese government bonds yield 1.93%, a 17-year high, attracting foreign capital. Taiwan investors have favorable environment for yen purchases.

Risks and opportunities

Short-term volatility exists. Closing arbitrage positions, geopolitical risks (Taiwan Strait, Middle East) could cause 2–5% swings. But over 3–6 months, the yen’s upward trend and safe-haven demand support appreciation. Taiwan’s forex demand in H2 increased 25%, mainly from travel recovery and hedging needs.

Strategy: Use dollar-cost averaging—divide 1 million TWD into four parts of 250,000 each—to reduce risk. Set target rates (e.g., below 4.80) to increase flexibility.

After buying yen: 4 ways to grow your assets

Don’t let your yen sit idle. Based on risk appetite and timeline, consider these options:

1. Yen fixed deposit — conservative, steady

Open a foreign currency account, deposit yen online. Minimum 10,000 yen, annual interest 1.5–1.8%, much higher than TWD deposits (~0.7%). Suitable for 3–12 months.

Banks like Taiwan Bank, E.SUN, First Bank offer this. Easy to open, interest paid periodically. But early withdrawal may incur interest loss.

2. Yen insurance policy — medium-term income

Buy savings insurance from Cathay or Fubon, with guaranteed 2–3% interest plus annual dividends. Hold for 3–5 years.

Advantages: insurance coverage plus stable returns. Disadvantages: early surrender penalties. Suitable for risk-averse investors seeking fixed income.

3. Yen ETFs — growth-oriented

Invest in ETFs tracking yen or Japanese stocks, e.g., Yuanta 00675U (yen index ETF), 0050 (Taiwan 50). Low management fees (~0.4%), can buy fractional shares via broker apps, suitable for dollar-cost averaging.

Advantages: long-term appreciation of yen, automatic averaging. Risks: currency fluctuations, stock market risk.

4. Forex trading — short-term opportunities

Trade yen currency pairs (USD/JPY, EUR/JPY) on platforms like Mitrade. Zero commission, low spreads, 24/7 trading. Small capital can participate.

Ideal for experienced traders expecting short-term swings. Use stop-loss, take-profit tools for risk management. High risk, requires discipline.

Portfolio suggestions:

• Conservative: Yen deposits + insurance
• Balanced: Yen deposits + ETFs
• Aggressive: ETFs + forex trading

FAQs

Q1: What’s the difference between cash rate and spot rate?

Cash rate: Bank’s buy/sell rate for physical cash, used at counters. Usually 1–2% worse than spot, earning bank fees.

Spot rate: Market rate for T+2 settlement, used for electronic transfers. Closer to international market.

Use cash rate for immediate cash needs; spot for online transfers.

Q2: How much yen can I get for 10,000 TWD?

At Taiwan Bank’s cash selling rate (~0.2060 TWD/JPY):

10,000 TWD × (1/0.2060) ≈ 48,543 JPY

At spot rate (~0.205 TWD/JPY):

10,000 TWD × (1/0.205) ≈ 48,780 JPY

Difference about 200 JPY (~40 TWD).

Q3: What ID do I need to buy yen?

Taiwan residents: ID card + passport.

Foreigners: Passport + residence permit.

Company: Business registration.

Online reservation: Transaction notice.

Large amounts (>100,000 TWD): Declare source of funds to prevent money laundering.

Q4: What’s the daily withdrawal limit at foreign currency ATMs?

Limits vary by bank. For example:

Check with your bank for specifics. To avoid fees and shortages, plan withdrawals over multiple days.

Final takeaway: the golden rule for buying yen

Buying yen isn’t just for travel anymore; it’s a strategic asset for hedging and investment.

Key principles:

• Diverse purchases: Use installment methods to average costs and reduce risk.
• Staggered buying: Avoid all-in at once; buy in parts during low-rate periods.
• Asset allocation: Use deposits, insurance, ETFs, or forex trading based on your risk profile and timeline.

Whether small or large budget, combining these methods can maximize savings and returns. Start now—timing the market is tough, but disciplined, phased buying and smart asset allocation will serve you well in the long run.