What does it mean that God made us righteous?

To be made righteous by God signifies that believers are declared justified through faith in Jesus Christ, as they cannot achieve righteousness on their own. This concept is rooted in the understanding that our natural righteousness is insufficient, described as 'filthy rags' before a holy God. Our justification comes solely through Christ’s atoning work, which enables believers to stand before God with a perfect righteousness not of their own but given through faith. This is a critical aspect of the Reformed understanding of salvation, emphasizing that God’s grace is the basis for our righteousness.