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Old graduate splitting pants in Nicaraguan capital (8)

Ross

I believe the answer is:

cordobas

'nicaraguan capital' is the definition.
(currency of Nicaragua)

'old graduate splitting pants' is the wordplay.
'old' becomes 'o' (common abbreviation eg in OE for Old English).
'graduate' becomes 'ba'.
'splitting' indicates putting letters inside.
'pants' becomes 'cords' (cords is a kind of pants**).
'o'+'ba'='oba'
'oba' inserted into 'cords' is 'CORDOBAS'.

'in' is the link.

I've seen this clue in The Guardian.
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