Crossword Genius

Excellent city like Reykjavik (7)

Ross

I believe the answer is:

capital

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'excellent' is the definition.
(I've seen this before)

I don't understand how the remainder of the clue works.

Can you help me to learn more?

(Other definitions for capital that I've seen before include "Hamilton, perhaps" , "City - finance - very good" , "Funds" , "Upper-case letter" , "It's terrific in the big city" .)

I've seen this clue in The Sun.
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