Branch or agency covering foreign city (9)

I believe the answer is:

anchorage

I'm a little stuck... Click here to teach me more about this clue!

'foreign city' is the definition.
'Anchorage' can be an answer for 'city' (Anchorage is an example). I am not sure about the 'foreign' bit.

'branch or agency covering' is the wordplay.
'covering' indicates the answer is hidden within the clue.
'ANCHORAGE' can be found hidden inside 'branch or agency'.

Can you help me to learn more?

(Other definitions for anchorage that I've seen before include "Roads" , "road" , "Alaskan port" , "Alaska's most populous city" , "place to moor vessel" .)

I've seen this clue in The Telegraph.

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