Shopping time, finally. The armor shop is fairly decent; get some Diamond gear for your party. Also buy the Enhancer sword for Celes. It is quite good, as it raises her physical and magical power beyond pretty much anything else you can have right now. That’s pretty much it.
Stock up on the basics, too, and rest at the Inn if you need to. Afterwards, head to the Pub near the shopping center. Speak with the thief sitting at the table and he’ll leave. Follow him outside and go north to find King Edgar!
Speak with him and he’ll … claim to be named Gerad, having never heard of this Edgar? Odd. I mean, he looks like Edgar, (probably) sounds like Edgar, and couldn’t really be so attached with the once-imprisoned Figaro thieves without having known of King Edgar (so his lack of knowledge is likely a lie). Not to mention the fact that "Gerad" is an anagram of "Edgar". The only real tie to the feasibility of ALL OF THIS is that it is only Celes that really reacts to the Gerad/Edgar character, and not Sabin, Edgar’s twin brother.
Well, whatever. Follow him for a while and you’ll reach the harbor, then sneak on the boat with the Crimson Robbers. You’ll make landfall in South Figaro.