What does the cryptic crossword clue "New against old capital (8)" mean?

The definition is "capital". The wordplay uses anagram, charade. anagram of AGAINST ("against") + O (abbreviation of "old") [anagram: "New"] = SANTIAGO; definition: "capital" The answer is Santiago.

New against old capital (8)

Telegraph Prize Cryptic #3076 | 13 Across | 2020-10-04 flower

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