Prime Minister John Key says there is a "balancing act" between sanctions and preventing economic collapse, in international dealings with Fiji.
The Fijian economy was starting to deteriorate rapidly and the fastest way to get the economy back on track was to restore democracy, Mr Key told TV One's Breakfast
show.
There were rumours Fiji had contacted the IMF or World Bank for funds but Mr Key said he had not had any official reports on the matter.
International countries and organisations were withdrawing investment in the Pacific nation because of uncertainty, Mr Key said.
"Once you start putting the words coup and holiday destination together in international markets people stop travelling."
Previously, he had not ruled out assisting Fiji should its economy fail.
"At this stage we are just monitoring that situation, obviously if it gets more serious then we may get engaged with other stakeholders to do something about that but it's very early days at this stage," he said.
"If there was a major financial crisis in Fiji, we don't want to see everyday Fijians hurt and we'd certainly be trying hard to make sure they were not collateral damage in the process."
Former prime minister and World Trade Organisation director-general Mike Moore said New Zealand and Australian diplomacy had failed Fiji.
Fiji is under military rule after a 2006 coup led by Commodore Voreqe (Frank) Bainimarama.
"Foreign policy is projecting and protecting your interests and promoting your values, and building up over many years those values and those interests.
"We have failed," he said on TV One's Q+A programme.
Mr Moore said "a game changer" was needed to look at the problems rather than take a critical approach.
New Zealand beat its chest about the coup in Fiji while ignoring coups elsewhere, he said.
New Zealand and Australia have travel sanctions but have not stopped aid going to agencies. Both have promised to help with any return to democracy.
- NZPA
