What is imputed righteousness?

Imputed righteousness is a crucial concept in sovereign grace theology, signifying that the righteousness of Christ is credited to believers when they place their faith in Him. Romans 4 speaks of how Abraham's faith was counted as righteousness, indicating that righteousness comes through belief, not works. This means that believers stand before God justified, not because of their own merits, but because Christ has fulfilled the law and His righteousness has been imputed to them, as seen in Romans 5:19, where through the obedience of one, many are made righteous.