China is taking extreme measures to contain the spread of the deadly coronavirus, including cleaning thousands of bank notes already in circulation.

Key point: China is using ultraviolet light to clean bank notes of any infection

China is using ultraviolet light to clean bank notes of any infection The disinfected cash will be locked away for 14 days

The disinfected cash will be locked away for 14 days Chinese authorities say the economic impact of the virus is only "temporary"

This comes as Chinese authorities say the economic impact of the COVID-19 coronavirus is temporary.

The coronavirus has created a rippling effect on China's economy as many factories remain closed, disrupting business supply chains and impacting on revenue.

"China's epidemic prevention and control measures are showing positive effects, and we are actively supporting and promoting the resumption of work in various enterprises and institutions, including foreign companies in China," the Ministry of Foreign Affairs said.

Last week, China's central bank, the People's Bank of China, announced it would be cleaning thousands of bank notes by using ultraviolet light or high temperatures to cut off the spread of infection through money exchanges.

"Cash collected from key epidemic prevention and control areas will be disinfected … and stored for more than 14 days before being put back on the market," a statement from China's State Council said.

Cash collected from non-epidemic prevention and control key areas will be stored for more than seven days before being put on the market after being disinfected.

Cash transfers between banks in seriously affected areas have also been suspended and cash received by banks must be sterilised before being given back to customers.

The bank also announced it would increase cash supply to regions hit hard by the coronavirus, particularly in the city of Wuhan — the epicentre of the virus.

The bank allocated about 4 billion yuan ($860 million) to Wuhan to "increase cash supply to hospitals" and other key institutions for disease prevention prior to the lunar new year in January.

"We have required all People's Bank of China branches to … release the newly issued banknotes or funds as much as possible," a representative of the central bank said.

People's Bank of China headquarters in Beijing ( Reuters: Peter Kundzic )

He-Ling Shi, economics professor from Monash University, said the new banknotes were used to replace the cash already in circulation, so the action would have "no impact on economy".

"There are some scientific evidences that the COVID-19 virus could survive on the banknotes for a couple of days," Mr Shi said.

Earlier this month, China announced it would inject 1.2 trillion yuan ($260 billion) into the market.

"Depending on the subsequent monetary policy, this 1.2 trillion yuan injection could cause inflation in China," Mr Shi said.

"Especially [because] the manufacturing supply chain in China has been significantly disturbed by the COVID-19 coronavirus."

China has been hit hard by the coronavirus since December, which has killed more than 1,500 people and infected more than 66,000 people worldwide.

Extended lockdowns in several cities have caused problems for people returning to work, and recent university graduates are struggling to find employment during the epidemic.

Volunteers in protective suits disinfect a railway station as China takes extreme measures to control COVID-19. ( Reuters: )

Additional reporting by Kai Feng.