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In this video tutorial, the process of converting currency is explained using an example where John wants to convert 15,000 US dollars into Euros. The given exchange rate is 1 US dollar equal to 0.9 Euros. To perform the conversion, the initial amount (15,000) is placed in the numerator of a fraction. The exchange rate is set up in a second fraction, ensuring that the US dollar unit cancels out. The tutorial emphasizes the importance of aligning units correctly to achieve the desired currency conversion outcome. By properly arranging the fractions, the conversion from US dollars to Euros can be accurately calculated.