The most common and most likely answer to this crossword clue is the 7 letter word NICOSIA
I've seen this crossword clue in Financial Times
N
I
C
O
S
I
A
More clues leading to the result NICOSIA
- Collection of coins I found near a Mediterranean capital
- International function hosted by part of UK at a city
- Capital I invested in dodgy casino
- Capital one invested in corrupt casino
- Exchange coin inside of Asian capital
- Ionic as translated reveals historic location
- Capital report on underwear drawer?
- 11 tour Greek island during an uprising in capital
- Coins given out with first-class returns for capital
- Capital and income principally invested in new casino
Buddy explains!

The straight part
We know that "Capital" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case capital = nicosia.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.