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In this tutorial, Sanjay Prakash explains the currency field in Dataverse and Dynamics 365, highlighting the management of multiple currencies. He describes two main types of currencies: base currency and local currency. Using an example, he illustrates that if a business's headquarters is in the U.S., the base currency is the U.S. dollar. However, if the business has a branch in India, employees there should transact in the Indian rupee to effectively deal with local customers. This distinction is important to understand how different currencies operate within the platform, aiming to clarify a concept that can often be confusing.