"This is empirically false" It isn't. It is accounting fact. Every currency held outside its borders is a foreigner saving that currency. That's all a reserve

"This is empirically false" It isn't. It is accounting fact. Every currency held outside its borders is a foreigner saving that currency. That's all a reserve is. Lots of people like to hold US dollars. Fewer Argentine pesos even within the country. Actually having fewer people hold you currency makes it easier to run. You just make your budget in that currency balanced by increasing taxes. If you have lots of people saving your currency then let them - and accommodate the savings.