Cascara part-exchanged in South American city (7)

I believe the answer is:

caracas

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

'south american city' is the definition.
(I've seen this before)

'cascara part-exchanged' is the wordplay.
'cascara' anagrams to 'CARACAS'.
However, I am unsure how the anagram is indicated.

'in' is the link.

Can you help me to learn more?

(Other definitions for caracas that I've seen before include "South American capital" , "South American city" , "Capital city" , "Capital of Venezuela" , "Venezuelan capital" .)

I've seen this clue in The Guardian.

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