City figure has surprising reach (9)
I believe the answer is:
bucharest
'city' is the definition.
(Bucharest is an example)
'figure has surprising reach' is the wordplay.
'figure' becomes 'bust' (bust is a kind of figure).
'has' is an insertion indicator.
'surprising' indicates anagramming the letters.
'reach' anagrammed gives 'chare'.
'bust' placed around 'chare' is 'BUCHAREST'.
(Other definitions for bucharest that I've seen before include "European city" , "European capital" , "Romanian capital" , "Capital of Romania" , "Balkan city" .)