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In this video tutorial, the process of converting currency using the exchange rate is demonstrated, specifically converting 15,000 US dollars to Euros. The given exchange rate is 1 US dollar equals 0.9 Euros. To perform the conversion, the amount in US dollars is written as the numerator in a fraction. The exchange rate is then set up in a second fraction with the goal of canceling the US dollar unit. To achieve this, the US dollar unit must appear in the denominator of the second fraction, allowing for the conversion to Euros to be completed correctly. The tutorial emphasizes the importance of unit cancellation to simplify the conversion process.